Inayat-ur-Rahman, Gulf Today
Picture used for illustrative purpose.
Dubai property sector is on a solid growth track and marching ahead despite the COVID-19 challenges. The City of Wonders has registered 25,455 real estate transactions worth Dhs92 billion from January - April 2021, thus achieving an increase of 51 per cent in terms of the number of transactions and 72 percent in terms of their value compared to the same period in 2020.
According to the real estate bulletin issued by Dubai Land Department (DLD) under the name ‘Real Estate Updates,’ the real estate sector showed robustness and an ability to adapt to various circumstances and developments.
The bulletin revealed that the real estate sector in the emirate will continue to attract more real estate investors, thanks to its strong infrastructure and attractive investment opportunities. 8,749 new investors entered the market from January - April 2021, representing 65 per cent of the total number of real estate investors registered in that period, with a growth of 54 percent compared to the same period in 2020.
The bulletin also showed that the total value of real estate investments during the aforementioned period reached Dhs36 billion, an increase of 44 percent compared to the same period in 2020. This confirms the continued flow of real estate investments since the beginning of the year at a high rate, which also strengthens the trust of local and international investors alike.
187,949 Ejari contracts were recorded in January - April 2021, 58 percent of which were new contracts and 42 percent were renewed contracts.
The bulletin highlighted the top five areas for investor attractiveness. In villa sales, Hadaeq Sheikh Mohammed Bin Rashid topped the list in April 2021, followed by Palm Jumeirah, Wadi Al Safa 5, Wadi Al Safa 7, and Al Yelayiss 2. In apartment sales, Dubai Marina, Burj Khalifa, Palm Jumeirah, Business Bay, and Al Thanyah Fifth topped the list in April 2021.
It is expected that the real estate sector will witness increased growth and a greater recovery in the coming period following the permission of Dubai’s Supreme Committee of Crisis and Disaster Management to submit electronic permit applications for business activities of all kinds, in addition to the fast-approaching date of Expo 2020, which in turn will attract tourists and visitors from around the world and will constitute a great opportunity for the real estate sector to strengthen its position regionally and globally.
Dubai Economy issues 15,475 new licences: The Business Registration and Licencing (BRL) sector of Dubai Economy has issued 15,475 new licences during the first quarter of 2021, a growth of 19 per cent compared to Q1 2020, when 13,027 licences were issued.
This highlights the resilience of the business environment of Dubai and the emirate’s economic competitiveness and ability to attract businesses to across various sectors.
Of the new licenses issued in Q1 2021, 58 per cent were professional (8,935), followed by 41 per cent commercial activities (6,290), and the rest distributed among the tourism and industrial activities.
In terms of distribution of the new licences according to location, Bur Dubai accounts for the largest share (8,220), followed by Deira (7,236), and Hatta (19). The top sub-regions were: Al Fahidi, Burj Khalifa, Al Khabaisi, Port Saeed, Trade Centre 1, Al Marar, Al Barsha 1, Naif, and Riggat Al Buteen.
During the first quarter of the year, 99,887 business registration and licencing transactions were completed, a growth of 8 percent compared to 92,325 in Q1 2020, demonstrating the vital role of Dubai Economy in delivering value-added services to the public in Dubai.
License Renewal accounted for 38,090 transactions during Q1 2021, a 4 percent growth compared to Q1 2020 (36,484). This underlines the benefits from the economic stimulus package launched by Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council, which allows renewal of commercial licences without lease contract.
Auto Renewal via text messages during Q1 2021 accounted for 20,923, 16 percent growth compared to Q1 2020 (18,061). The number of Trade Name Reservation was 17,397, Initial Approvals reached 13,914, and the total number of Commercial Permits was 3,077.
Dubai Economy highlighted the importance of collaborative work by the government and private sectors. The private sector supports economic development by launching competitive and value-added projects under the wise leadership of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.