Villas continued to drive the recovery in Dubai real estate prices during the second quarter of 2021, according to consultants ValuStrat.

Its ValuStrat Price Index, which has been expanded to cover more locations in the city, grew by 3.8 percent during the April to June period compared to the previous quarter.

This increase cancelled almost all the capital losses of the previous year, ValuStrat said in a statement on Saturday.

It added that in June the index registered 69 points compared to 69.4 points in the same period last year.

Despite the recent rebound, there is still a long way to reach 100 points registered as of January 2014, not to mention the peak of June 2014 which saw the citywide VPI achieve 112.9 points.

Villas, which represent 13 percent of the residential market in Dubai, spearheaded the Q2 growth with a quarterly growth of 7 percent and an annual growth of 6.3 percent.

ValuStrat said all villas monitored by the basket saw improvements not seen since 2014. The highest annual capital gains were found in The Meadows, Arabian Ranches, The Lakes, Jumeirah Islands, Dubai Hills Estate and Mudon.

Quarterly, the apartments VPI grew 1.7 percent but did not perform as well as villas on an annual basis, still declining 4.8 percent when compared to Q2 last year.

Jumeirah Beach Residence, Palm Jumeirah, Downtown Dubai and the Views where the best quarterly performers.

ValuStrat said that compared to last year apartments in International City, Palm Jumeirah, Jumeirah Beach Residence, Al Furjan and Al Quoz Forth have written off their capital losses of last year.

The VPI for Dubai residential capital values has expanded to cover 95 percent of the freehold market as the city has seen new locations become established and start to influence the overall real estate performance.

Three more villa areas and five more apartment locations have been added to the fixed basket of properties that its team of valuers appraise each month.

Villa locations are Dubai Hills Estate, Mudon and Green Community (DIP) have been added while, for apartments, Dubai Silicon Oasis, Al Furjan, Dubailand Residence Complex, Town Square and Al Quoz Fourth (Al Khail Heights) have been added.

Source:www.arabianbusiness.com

 

 

Source:www.zawya.com

 

The Dubai property market is gaining momentum as the City of Wonders emerges from a COVID-19 induced slowdown bucking the global trends.

A total of 2,020 real estate and properties transactions were valued at Dhs4.5 billion in total during the week, according to Dubai Land Department (DLD).

The DLD weekly report said 119 plots were sold for Dhs 845.1 million, 1,321 apartments and villas were sold for Dhs 2.25 billion.

It noted that the top three transactions were a land in Marsa Dubai sold for Dhs125 million, followed by a land that was sold for Dhs57 million in Al Thanayah Fourth, and a land sold for Dhs 125 million in Marsa Dubai in third place.

Al Hebiah Third recorded the most transactions for this week by 20 sales transactions worth Dhs 61.81 million, followed by Hadaeq Sheikh Mohammed Bin Rashid with 14 sales transactions worth Dhs 139.68 million, and Jumeirah First with 14 sales transactions worth Dhs 106 million in third place.

The top three transfers for apartments and villas were an apartment was sold for Dhs 298 million in Marsa Dubai, an apartment was second in the list sold for Dhs 264 million in Al Merkadh, and thirdly it was an apartment sold for Dhs 233 million in Palm Jumeirah.

The sum of the amount of mortgaged properties for the week was 1 billion, with the highest being a land in Al Goze Fourth, mortgaged for Dhs 139 million.

124 properties were granted between first-degree relatives worth Dhs 230 million.

In its latest forecast, rating agency S&P Global also shared positive remarks on Dubai real estate and forecast more than 30 per cent revenue growth in 2021 on supportive market trends for real estate and a gradual recovery in other business segments.

“We expect Dubai’s GDP to rebound about 3.5 per cent in 2021, followed by growth of 2.5 per cent in 2022,” S&P analysts said.

“While we think that structural oversupply in Dubai’s residential real estate sector will linger, we think that demand for good-quality, premium assets will support sales in 2021. We expect 30 per cent to 35 per cent revenue growth in 2021, from high demand for residential real estate in Dubai and recovery in other business segments, namely the retail and hospitality sectors,” they added.

Meanwhile, under the patronage of the Egyptian Ambassador to the UAE, Sherif Mohamed Fouad Al-Badawi, a UAE property developer is organising a special sales day at the Sofitel Abu Dhabi Corniche Hotel on Saturday.

The event includes the launch of “Reportage Properties” a special offer that includes a 10% discount on the company’s projects in the UAE, and 15% on the “Montenapoleone” project in Egypt, upon the buyer’s payment of a 10% as down payment.

Islam Ahmed Suleiman, CEO, Reportage Properties said that the economic and trade relations between the UAE and Egypt are a model to be followed for Arab and regional state relations, that is evident in the continuous increase in joint investments between the two countries.

Suleiman stressed that the recent launch of the “Montenapoleone” project, which is their first project outside the UAE, reflects the stability and strength of the company’s financial position, and its ability to develop more new projects inside and outside the UAE. He noted the strong demand on the residential units in the project from the majority of investors, especially in light of the positive developments witnessed by the Egyptian real estate sector in recent years.

Suleiman pointed to the fact that Reportage is interested in making many special offers, especially during sales events, which is well responded to by buyers, in light of the diversity of offers that suit large segments of customers.  

Reportage Properties is developing 11 projects , providing about 5,000 housing units in the UAE, in addition to the Montenapoleone project, which the company recently launched in Mustakbal City in New Cairo, Egypt, and will be developed in cooperation with Al Ahly Sabbour, the leading developer in Egypt.

The”Montenapoleone”,which  will be built on an area of 465,000 square meters, and include 5,500 housing units, is the first “Reportage Properties” project outside the UAE.

Source:www.khaleejtimes.com

The Dubai real estate market is gaining momentum as the emirate emerges from a Covid-19 induced slowdown and will stage a strong rebound in second half due to stimulus packages, visa reforms and strong demand from end-users and investors, experts say.

Leading developers, executives and analysts said residential segment has already bottomed out and offers good opportunities for developers on premium properties. They said prices for villa and townhouses have already registered an upward trend in past seven months and apartments prices are also expected to reflect the stable trend in second half.

“The outlook is bright. It’s not merely an assumption, but based out of rationales. In my opinion, the recovery was overdue, and it has only got boosted with how the Covid-19 crisis has been handled in Dubai,” Atif Rahman, director and partner at Danube Properties, told Khaleej Times on Monday.

New investors

Referring to latest data, he said entry of 8,000+ new investors into the Dubai property market during the first half despite the fact that the international travel and migration are at their lowest due to Covid-19 restrictions.

“This is due to the first-class infrastructure built by Dubai; the strength and resilience of which has been wonderfully demonstrated during a global crisis. Dubai goes beyond tourism, leisure, and lifestyle; it’s a stable economy supported by constant improvement initiatives from the visionary leaders and the government bodies,” he said. “Look at the most recent announcements such as immigration reforms, trade liberalization and 2040 masterplan, all are focused on making the city and the economy better for its people. Now all of this attracts fresh FDI and immigrants leading to surge in population, which increases the domestic consumption.

“The benefits will be enjoyed by all industries but surely impacts the most for Real Estate, Retail and Banking industry ahead of others. Add to all of this, the increased impact of Expo2020 that shall be delivered later this year,” Atif elaborated.

30%+ revenue growth

In its latest forecast, rating agency S&P Global also shared positive remarks on Dubai real estate and forecast more than 30 per cent revenue growth in 2021 on supportive market trends for real estate and a gradual recovery in other business segments.

“We expect Dubai’s GDP to rebound about 3.5 per cent in 2021, followed by growth of 2.5 per cent in 2022,” S&P analysts said.

“While we think that structural oversupply in Dubai’s residential real estate sector will linger, we think that demand for good-quality, premium assets will support sales in 2021. We expect 30 per cent to 35 per cent revenue growth in 2021, from high demand for residential real estate in Dubai and recovery in other business segments, namely the retail and hospitality sectors,” they added.

Market resurgence

Zhann Jochinke, chief executive of Property Monitor, said Dubai real estate market has witnessed a resurgence with prices appreciating slightly more than 10 per cent over the past seven months.

“Year-to-date 2021 property prices emirate-wide for Dubai have increased 8.3 per cent and I foresee that appreciation will continue through the remainder of the year however expect rate of price increase to slowdown in the coming months,” Jochinke told Khaleej Times on Monday.

A sustainable recovery

To a question about recovery is sustainable, he said: “In short, yes, however at a subdued pace particularly in the resale market of completed properties.”

He said a large driver of the recovery to date has been due to the sale of villa and townhouses in mature communities where end-users were for a time able to find incredible value. “With inventory in these areas becoming scare and prices rising at a rapid pace for prospective buyers who are familiar with the market have begun to pull back and not appease seller’s aggressive expectations.”

He said some of the fringe communities or less popular communities are yet to see overall price appreciation, however the market has begun to show signs of price stability and over the coming months will likely continue to see positive growth.

Regarding the off-plan market, he said a continued recovery will be heavily dependent on the level of new supply being approved to come to market for sale.

“New supply will be organised due to the oversight of Sheikh Mohammed bin Rashid Al Maktoum’s higher committee of real estate [announced in late 2019] and it will be closely monitored and is likely to result in significantly fewer new project launches than in recent years,” he said.

Expo to boost confidence

Nikita Kuznetsov, chief executive of Metropolitan Premium Properties, said the real estate outlook appears positive for the second half of the year especially with Expo 2020 just around the corner. He said the resale market is on an upward trajectory thanks to a steadily growing economy encouraging residents and citizens to move home to bigger and better options.

“We also are seeing more people relocating or investing in a second home here in Dubai or the UAE due to the positive steps taken by the government to battle the Covid-19 pandemic. We have also seen a spike in the number of transactions for villas and townhouses, with a notable interest and high demand in waterfront or shoreline property,” Kuznetsov told Khaleej Times on Monday.

Metropolitan Premium Properties is a full-service real estate agency offering customised solutions to developers, owners and investors who are looking to maximise value from their luxury real estate assets.

“With one of the largest premium property portfolios in the UAE – 20 per cent of our listings cater to properties over Dh10million, we have also seen strong demand for luxury property from overseas investors,” Kuznetsov said.

He said nearly 30 per cent of our transactions last year were from our international clients primarily from the UK and other parts of Europe including France, Germany and Austria and “we expect this trend to continue”.

“Location wise areas such as Dubai Marina, Downtown and Palm Jumeriah are consistently active, as well as the off-plan market showing impressive new projects that sell out at pace,” he said.

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Why people are investing in Dubai real estate

• Safety and security

• Capital appreciation

• Modern-day lifestyle

• Tax-free, stable economy

• Excellent infrastructure

Dubai property is back in demand

* 8,000+ New investors entered into the Dubai property market in H1

* 30%+ Revenue growth for real estate companies in 2021

* 10%+ Increase in Dubai real estate prices since November

* 8.3% Average jump in Dubai properties this year so far

 

Source:www.khaleejtimes.com

 

With a little more than three months to the official opening, the Expo 2020 Dubai will generate thousands of jobs in the UAE market, and give a boost to the economy, according to HR consultancies and industry experts. 

Dubbed the world’s biggest show, the world fair that will be held between October 1 and April 1, is expected to draw millions of visitors to Dubai.

The world flocking to Dubai means more customers to businesses, which will, in turn, encourage them to have more hands-on the deck, especially in the service industries, said HR firms.

“Expo 2020 will impact Dubai’s economy and we are predicting a huge influx of jobs in the region especially within travel tourism, real estate, retail, events and exhibition, technology and software consultancy, marketing and media, engineering, security, logistics, health and safety, procurement and finance and most importantly hospitality,” said Mayank Patel, Country Head Middle East, Adecco a global HR Solutions firm.

“As Dubai already is a business hub for leading industries especially real estate, hospitality and technology, but with Expo 2020 in the vicinity, the attractiveness is set to intensify further,” he added.

The year 2020 was one of the worst years for businesses as they were hit hard by Covid-triggered lockdowns and border closures. Many were forced to lay off people and downsize to survive. With better prospects in 2021 as Dubai gradually reopened thanks to the mass vaccination drive, many hard-hit industries especially travel, hospitality and aviation are bouncing back.

Raj Rishi Singh, Chief Business Officer, GCC, at MakeMyTrip said Dubai Expo – one of the biggest global events post-pandemic with people in physical attendance – will boost jobs in the travel and tourism sector.

“As we countdown to Dubai Expo, we are confident that travel demand will see a spurt in growth during this period.”

He said international travellers are likely to club their visit to the Expo with a short vacation to some of the leisure hotspots across the region.

“In the coming months, as demand returns in full capacity for both, leisure and business travel to the region, we are hopeful that the industry will throw up new work opportunities for a skilled workforce with deep travel and hospitality domain expertise.”

Demand for drivers

With more than 25 million new visits to the city, the demand for transportation is expected to skyrocket. Foreseeing the demand, many companies are already hiring.

A spokesperson for Careem, a car-hiring company said, “We are working with partner companies to have a sufficient amount of Captains available to provide excellent service to Expo visitors.”

Soham Shah, Founder of Selfdrive.ae, a car rental company, said they are looking to add 3000 to 3500 new cars to meet the EXPO demand.

“As an industry, we are looking at a high potential demand for six to nine months or even a year. We are looking at an unprecedented demand for car subscriptions, and once the Expo starts, there will be a potential demand in daily, weekly car rentals too. Overall, we are gearing up to add 3,000 to 3,500 cars during the Expo. We have a roadmap built on that,” said Shah.

He said the company has already started hiring and will be doubling the team to serve the demand they expect.

The entertainment industry gearing up

Events management companies and tour operators have also started hiring ahead of Expo.

“The entertainment and events industry is already in the hiring mode as the industry is getting ready for opening up ahead of Expo 2020. I believe a lot of business conferences, entertainment events will fill up the schedule before the end of summer this year. As a major events organiser, we are getting ready for the largest cinema convention at META Cinema Forum in October to celebrate the success of an industry that will create thousands of jobs across the region,” said Leila Masinaei, Managing Partner of GM Events.

Hemali Shah, managing director of City One Tourism and Travel said Expo 2020 Dubai has changed the economic sentiment of even smaller companies.

“Right now even I am hiring for four different positions to play our small part to be ready for this mega event. The good times are coming back and each one of us will play our part, towards rebuilding the global sentiment, said, Shah.

If the job advertisements on online platforms are any indication, several companies have advertised for ‘Expo jobs’ and are calling in applicants for positions like waiters, storekeepers, drivers, chefs and sales executive to mention a few.

Patel said there is also a high demand for senior-level executive talents such as operations and project managers, drone show managers, senior manager production, guest services managers.

“Companies are also looking to hire mid-level talents such as customer service agents, tour guides, promoters and hostess as well as lower-skilled workforces such as technicians, helpers, cleaners and electricians.”

In addition, thousands of new positions are open as country pavilions are hiring people to man the pavilions. More than 200 participants are taking part and working at many pavilions are almost complete.

“Expo 2020 hiring’s have been slowly picking up since the end of Q1 with a majority of the population being vaccinated and declining Covid cases are adding momentum to hiring. We further expect a major increase in employment opportunities in the coming months,” said Patel.

The year 2020 was one of the worst years for businesses as they were hit hard by Covid-triggered lockdowns and border closures. Many were forced to lay off people and downsize to survive. With better prospects in 2021 as Dubai gradually reopened thanks to the mass vaccination drive, many hard-hit industries especially travel, hospitality and aviation are bouncing back.

Raj Rishi Singh, Chief Business Officer, GCC, at MakeMyTrip said Dubai Expo – one of the biggest global events post-pandemic with people in physical attendance – will boost jobs in the travel and tourism sector.

“As we countdown to Dubai Expo, we are confident that travel demand will see a spurt in growth during this period.”

He said international travellers are likely to club their visit to the Expo with a short vacation to some of the leisure hotspots across the region.

“In the coming months, as demand returns in full capacity for both, leisure and business travel to the region, we are hopeful that the industry will throw up new work opportunities for a skilled workforce with deep travel and hospitality domain expertise.”

Demand for drivers

With more than 25 million new visits to the city, the demand for transportation is expected to skyrocket. Foreseeing the demand, many companies are already hiring.

A spokesperson for Careem, a car-hiring company said, “We are working with partner companies to have a sufficient amount of Captains available to provide excellent service to Expo visitors.”

Soham Shah, Founder of Selfdrive.ae, a car rental company, said they are looking to add 3000 to 3500 new cars to meet the EXPO demand.

“As an industry, we are looking at a high potential demand for six to nine months or even a year. We are looking at an unprecedented demand for car subscriptions, and once the Expo starts, there will be a potential demand in daily, weekly car rentals too. Overall, we are gearing up to add 3,000 to 3,500 cars during the Expo. We have a roadmap built on that,” said Shah.

He said the company has already started hiring and will be doubling the team to serve the demand they expect.

The entertainment industry gearing up

Events management companies and tour operators have also started hiring ahead of Expo.

“The entertainment and events industry is already in the hiring mode as the industry is getting ready for opening up ahead of Expo 2020. I believe a lot of business conferences, entertainment events will fill up the schedule before the end of summer this year. As a major events organiser, we are getting ready for the largest cinema convention at META Cinema Forum in October to celebrate the success of an industry that will create thousands of jobs across the region,” said Leila Masinaei, Managing Partner of GM Events.

Hemali Shah, managing director of City One Tourism and Travel said Expo 2020 Dubai has changed the economic sentiment of even smaller companies.

“Right now even I am hiring for four different positions to play our small part to be ready for this mega event. The good times are coming back and each one of us will play our part, towards rebuilding the global sentiment, said, Shah.

If the job advertisements on online platforms are any indication, several companies have advertised for ‘Expo jobs’ and are calling in applicants for positions like waiters, storekeepers, drivers, chefs and sales executive to mention a few.

Patel said there is also a high demand for senior-level executive talents such as operations and project managers, drone show managers, senior manager production, guest services managers.

“Companies are also looking to hire mid-level talents such as customer service agents, tour guides, promoters and hostess as well as lower-skilled workforces such as technicians, helpers, cleaners and electricians.”

In addition, thousands of new positions are open as country pavilions are hiring people to man the pavilions. More than 200 participants are taking part and working at many pavilions are almost complete.

“Expo 2020 hiring’s have been slowly picking up since the end of Q1 with a majority of the population being vaccinated and declining Covid cases are adding momentum to hiring. We further expect a major increase in employment opportunities in the coming months,” said Patel.

Source:www.khaleejtimes.com

 

Property market analysts believe that Dubai’s housing market, which has been buoyant since H2 2020, would continue to thrive.

The on-going rebound in Dubai’s property sector that is largely driven by a wave of government reforms and strong demand for larger homes will last several years, analysts from two leading international banks said. 

HSBC bank analysts expect the rally in Dubai’s real estate sector, which recorded a total sales transaction value of Dh10.97 billion in April 2021 — the highest since March 2017 — to last several years.

“The reported sales rebound in Dubai year-to-date has been remarkable,” HSBC’s Stephen Bramley-Jackson and Alok Baid wrote in a report. HSBC’s upbeat outlook aligns with that of Morgan Stanley analysts who forecast that robust demand, peaking supply growth and long lead times for new projects could lead to “a tighter-than-expected market over the next several years.”

“The rally in Dubai’s residential property prices isn’t stopping anytime soon,” they said. Demand for property picked up amid “a wave of government reforms over the past 12 months, attractive mortgage rates, and a shift in demand patterns due to Covid-19,” according to Morgan Stanley.

According to Dubai Statistics Center data, Dubai’s economy is projected to grow 4.0 per cent this year after an estimated 6.2 per cent contraction in 2020. As a key contributor, the realty sector accounts for about 8.0 per cent of Dubai economic output.

“The dynamics in the residential real estate market in 2021 has been interesting thus far. In April alone, we have seen six villa transactions over Dh50 million, with one on the Palm recorded as the second highest villa transaction in 2021 worth Dh 105 million. When looking at the mortgage transaction data, we have seen that April, March, and January of 2021 had the highest number of monthly transactions since March 2010,” said Lynnette Abad Sacchetto, director of research & data at Property Finder.

A dramatic recovery in Dubai realty was noticeable from March when transactions during March were at a 10-year high as strong market growth continued, a recent report by Property Monitor said. “With a fifth continuous month of gains, Dubai’s price recovery is well underway though not uniformly spread across communities. Villa and townhouse communities have particularly emerged as hot spots with a further acceleration in prices expected over the coming months.”

However, the positive outlook contrasts with certain negative views from international property consultancy Knight Frank and a few others.

Knight Frank analysts said a supply glut that has depressed Dubai’s property prices for over half a decade would persist and likely keep it on the sidelines of a global upswing in values of prime residential real estate.

Fast emerging from the pandemic slump, the construction industry will deliver an estimated 62,000 homes in the emirate this year and nearly 63,500 in 2022, which would be the most since 2009, Knight Frank estimates.

According to realty pundits, luxury villas are the hottest segment in the market, with European buyers in particular seeking homes on Dubai’s signature Palm Jumeirah man-made island, as well as golf course estates.

A recent property market report from Allsopp & Allsopp noted that the first quarter of 2021 has been incredible for the Dubai real estate market with an 82 per cent increase in sales transactions. Real estate consultancy Core estimates that an additional 26,500 units are expected to be handed over in the remainder of the year, taking the total annual forecast for 2021 at over 37,000 units

Source:www.khaleejtimes.com

Mashreq Bank exec says outlook for the UAE's tourism sector is improving after Covid shock

The outlook for the UAE’s travel and tourism sector has brightened in the second quarter of 2021 as the positive impact of the country’s strong vaccine programme starts to take effect, according to new research.

The latest industry briefing from Mashreq Bank also highlights that challenges continue to persist for certain segments of the industry, saying business travel and hospitality businesses will face hurdles for the remainder of 2021 as a result of the pandemic.

“While hotel occupancy in the UAE will gradually recover on the back of increased domestic tourism and the return of international travellers, business travel will not return to pre-pandemic levels in the foreseeable future,” said Zain Qureshi, managing director and global head of Real Estate Finance and Advisory at Mashreq Bank.

Qureshi also said he sees Expo 2020 Dubai, which opens to the world on October 1, being turned into the "gold standard" for large-scale events moving forward. Expo 2020 recently announced that vaccines will be made available to delegates from participating nations.

“As one of the first mega events to take place since the pandemic began, Expo 2020 could serve as a case study for the way forward,” he said. “Covid-19 and its variant forms will perhaps stay on in the foreseeable future, and the UAE really has a chance to set the benchmark with this global event.”

In February, a study by market analysts STR showed that over a quarter of 1,333 respondents said they were less likely to travel for business once the pandemic was over.

Remote-working trends brought about by the pandemic are expected to continue, given the safety and cost-effectiveness of digital conferencing tools.

According to the Mashreq briefing, the success of the UAE’s vaccine drive as well as strategic initiatives by the government to support local tourism have significantly contributed to improving the outlook for leisure travel.

In order to combat the pandemic, both federal and emirate-level agencies in the UAE have adopted a ‘zero-tolerance’ approach to non-compliance with safety protocols. Penalties have been swift, ranging from warnings to suspension of licences, ensuring that rules are followed through, it said.

Traveller sentiment remains wary, however, and it is critical for the sector to take a phased and coordinated approach to rebuild traveller trust, the report added.

For hospitality and tourism businesses to successfully bring back their customers, achieving operational agility will be critical in the evolving situation, said Qureshi.

“It’s about keeping your staff and operations as lean as possible until things stabilise,” he added.

He said the primary focus should be on securing consumer confidence in order to bring back footfall, adding that keeping premises safe and hygiene-controlled need to be prioritised – and businesses must prove that.

The industry briefing also discussed the approach that hotels and restaurants should take in order to not just develop positive consumer sentiment but to retain it in the coming months.

“It is essentially about improving sentiment, and making customers feel safe, not just in principle but visibly too,” said Qureshi.

The Mashreq repoet said the UAE has continued its strategy of becoming a world-class travel hub despite the challenges of 2020, with a number of new flight routes and destinations added in the past six months.

“The introduction of new routes not only makes the UAE most relevant as a tourism hub, but also encourages inbound traffic of visitors that may have never made the trip to the UAE otherwise,” said Qureshi. “Even if it’s just for a stopover or short stay, it still adds value to the local aviation industry.”

 

 

Source:www.arabianbusiness.com

 

DUBAI – Dubai's property market is powering out of a six-year malaise as "lockdown dodgers" and wealthy international investors drive a buying frenzy that is breaking records and fueling an economic recovery.

Luxury villas are the hottest segment in the market, with European buyers in particular seeking homes on Dubai's signature Palm Jumeirah artificial island, as well as golf course estates.

 

Dubai's roller coaster property market, which had been in steady decline since 2014, went into flatline after COVID-19 hit last year and the emirate slammed shut its borders, said Zhann Zochinke, chief operating officer of consultancy Property Monitor.

"Then straight after that lockdown period we started to see transaction volumes increase, and they really haven't stopped since," he said.

"We're now seeing record month-on-month gains and transaction volumes."

The Gulf emirate became one of the first destinations to reopen to visitors last July, pairing the open-door policy with strict rules on masking and social distancing, and an energetic vaccination program which has produced some of the highest inoculation rates globally.

Despite a surge in coronavirus cases this year after holidaymakers descended en masse, life has continued largely as normal with restaurants and hotels open, and few of the restrictions that have blighted life elsewhere.

"The lockdown dodgers from other countries? I think we're seeing a lot of that there," Zochinke said, adding that other draws were more relaxed residency rules and a decision to allow full foreign ownership of firms.

 

'Not just a construction site'

The flood of arrivals has regenerated the tourism industry, long an economic mainstay of Dubai which has little of the oil wealth that powers its neighbors, and helped business activity recover to pre-COVID-19 levels in April, according to IHS Markit.

"Travel and tourism firms recorded the most notable bounce in performance, amid increasing hopes of a rise in tourism activity later in the year, boosted by the rapid vaccine rollout," said the research firm's economist David Owen.

After years of torpor when homeowners watched their equity drain away, the surge in luxury properties above 10 million dirhams ($2.7 million) has been striking, with 90 transactions in April compared to around 350-400 on a regular yearly basis, according to Property Monitor.

A mansion on the Palm has sold for 111.25 million dirhams, the highest price reached in years in the precinct which features 16 "fronds" lined with show-stopping houses and supercars parked in the driveways.

The highest-priced property now available on the block is a vast Italian-inspired modern villa positioned at the end of one of the fronds, complete with 180 degree beach frontage, which is being offered for 100 million dirhams.

After it languished on the market during the gloomy days at the height of the pandemic, the developers are hoping that one of the new breed of cashed-up Europeans will be tempted by the infinity pool, private cinema, and acres of marble and glass.

"I think people have started to realize that Dubai is not just a construction site anymore, which it was maybe 10 years ago when we had the most amount of cranes in the world," said Matthew Bate, CEO of BlackBrick, one of the agencies representing the property.

 

'COVID-19 opened the doors'

"People are now looking at Dubai and saying — I'm going to make this my primary home. I can work from Dubai and still manage business in Europe or North America or Asia," he said.

"So I think what COVID ultimately did, it opened the doors for us to the rest of the world."

In a market where many fortunes have been made and lost, there is nervousness about whether the recent giddy rises can be sustained.

Sales of properties above 10 million dirhams rose 6.7% in April compared to the previous month, and 81 villas were sold on the Palm in April alone compared to 54 in all of 2020, according to Property Monitor.

Even with the remarkable gains, the market is still off its highs of 2014, and the apartment market is trailing far behind.

The financial services firm Morgan Stanley, however, said in a recent report that the rally isn't likely to stop soon.

"Robust demand, peaking supply growth and long lead times for new projects could lead to a tighter-than-expected market over the next several years," it said.

It credited "a wave of government reforms over the past 12 months, attractive mortgage rates, and a shift in demand patterns due to COVID-19

Source:https://www.japantimes.co

 

 

Most important land sales of Dh11m came in the Sheikh Mohammed bin Rashid Garden area.

Source:https://gulfnews.com/

 

Dubai: Expert, Walid Al Zarooni, noted the unprecedented robust investing response in the Emirate of Dubai, and the record turnout local and foreign investors take out. Most of the real estate developers in the emirate hanged a “sold out” sign, showing that their offered units were completely sold out.

Walid Al Zarooni, "W Capital" Chairman, said that the real estate market is currently going through a period of strong recovery thanks to several factors, most notably the recovery from the repercussions of the "Covid-19" pandemic and the acceleration of vaccination campaigns compared to the best global levels. Government initiatives for foreign ownership of projects and granting citizenship and golden residency to talents, also gave the sector an uplift.

 "In light of this unprecedented boom and sales activity for ready-made and off-plan residential projects, the looming question is:What else may the investors be looking for  to inject their money in the real estate market?” asked Al-Zarooni.  “The market is full of attractive opportunities and attractive price offers," he added.

The Chairman said that hesitation at the present time does not do as it may waste attractive investment opportunities. Delaying the purchase decision is never in the interest of the investor because he may not find a better opportunity in the future   in they  desire to own a property in Dubai.

He stressed the fact that  investors  should be decisive at this point and not hesitate  when they think of investing in the real estate sector .They  are advised to  benefit  from  the availability of good investment opportunities  , especially with the prices  being encouraging for attractive deals.

The facilities provided by developers to investors, such as zero down payments, and the long period of payment  plans ,as well as the strong investors’ appetite, are all positive indicators of good return added to upcoming event of " Dubai Expo 2020 ".

He stated that the real estate sector performance indicators encourage investors to quickly pump their money into the sector, in light of an expected recovery and more stable performance, and prices taking an upward track both  in the medium and long terms.

The Chairman said that some foreign investors found it difficult to be in the midst of queues wishing to invest in some of the favorite real estate projects in Dubai.

Al-Zarooni believes that Dubai has provided unprecedented incentives that encourage foreign investors to invest in the real estate sector before opportunities are lost, especially the high return on investment, which is among the highest in the world at rates of 7 and 8 percent.

Walid Al-Zarooni expected that the clear recovery during the first five months of this year may be a good proof of the sector’s continued growth in the coming years.

He stressed that the government is strongly supporting the factors revitalizing the real estate sector from time to time, through flexible legislation and renewable initiatives that support population growth and increase market demand directly.

He referred to the unprecedented facilities for foreign ownership of commercial projects in full, which provide additional support, to be effective starting from June 2021.

"Real estate prices are on a trajectory path since the correction period during the past year,” Al zarouni said. “This increases the investor's ability to achieve profits and double the value of their investments in a few years. Therefore, I advise them grab the available opportunities and speed up purchases," he added.

Source:www.zawya.com