The Realty sector in Dubai is back in the limelight beating the Covid-induced uncertainties and it is showing strong signs of sustained growth if one is to go by the statistics released by the Dubai Land Department (DLD) last week. According to DLD, Dubai has recorded the best October in the past 8 years as the real estate sector attracted a whopping Dh.13.12 billion in investments spread over 5,352 deals.
“The year-to-date total sales reached 48,651 valuing Dh.177.44 billion. This is a 38.34% year-on-year growth in terms of transactions and 63.4% in terms of value during the first 10 months of the current year,” DLD authorities revealed. The sector’s recovery is most evident in the villa segment commanding better prices compared to October last year.
Independent analysts and industry experts concurring with the DLD authorities observe that a number of factors including a slew of administrative and economic reforms, successful vaccination drive coupled with ongoing Expo 2020 have helped Dubai’s economy to bounce back sharply from the pandemic which in turn is reflecting in the realty sector’s growth.
A most recent survey involving property analysts forecast Dubai house prices to rise 3.0% this year and 2.5% in 2022 compared with 1.1% and 2.8% compared to three months ago. The survey predicts the Dubai residential property market to be on a steady course for a couple of years with a modest rise in prices. This indicates affordability on one hand sustainable growth on the other.
“There is no doubt that Dubai’s real estate sector has bounced back and from the market trend we can be reasonably sure that the sector is on a sustainable growth path at least for the next three years. This is the best time to invest in Dubai property considering the fact that the value will steadily appreciate by 2023-24,” said Shilpa DK, CEO of Arqonz.com.
Arqonz is a Chennai-based e-commerce platform that is dedicated exclusively for the real estate and construction industry. The company is also a major exporter of construction materials and other products like natural stones, outdoor and wicker furniture. Shilpa says that Arqonz has clearly benefited from the current growth phase of Dubai’s real estate sector.
“We are getting more enquiries and our export volume has gone up sharply during the last 4-5 months. If the current trend is any indication, I can say busy days are back,” she said. Expo 2020 is not only the only reason that has helped the recovery of the sector, she added. A host of reforms including 100% ownership law and the 2040 Master Plan are also reasons, according to her.
As a result of the current boom and steady rise in deals, Dubai, interestingly, hopes that 64,000 new housing units would spring up in the near future. If that translates into reality, it would be the highest level of completions since the 2009 recession. That explains why property in Dubai would remain affordable with ample supplies. This is the best time to invest in Dubai property, affirmed Shilpa.
That Dubai now has a favourable climate for investment in properties gets further endorsed by leading real estate players who are planning new projects. Danube Group, for instance, is one among them. “Business is coming back to pre-Covid normalcy,” said Danube Group managing director Adel Sajan, adding: “We are preparing to launch a number of new initiatives to support economic growth.”
Disclaimer: This article is a part of featured content series on Business in Dubai