Dubai property deals jump 80% in November amid economic recovery

The emirate recorded 7,000 sales transactions last month, making it the best November in eight years

The Dubai Marina skyline. Property prices have rebounded in Dubai after the pandemic disrupted the global economy. AP

The Palm Jumeirah. The value of property deals in Dubai more than doubled in 2021 and broke a 12-year record in terms of real estate sales transactions. Jaime Puebla / The National

A villa on The Palm. Dubai registered 84,196 property transactions worth Dh300 billion ($82bn) in 2021, which is the highest annual value recorded in the emirate’s history, according to the Dubai Land Department. Paulo Vecina / The National

A Mediterranean villa in Dubai's Mohammed bin Rashid Al Maktoum City. Satish Kumar / The National

The Palm in Dubai. The UAE's move to provide more flexible visas has fuelled interest by wealthy foreign buyers in Dubai's property market. Bloomberg

A two-bedroom apartment in Dubai Marina. Satish Kumar / The National

A modern Arabic villa in Mohammed bin Rashid Al Maktoum City's District One development in Dubai. Satish Kumar / The National

Property sales transactions in Dubai rose 80.4 per cent annually in November, buoyed by demand in the secondary real estate market as the UAE economy charted a strong recovery from the Covid-19 pandemic.

The emirate registered 7,000 sales deals worth Dh17.96 billion ($4.89bn) last month, making it the best November in terms of total sales in eight years, according to listings portal Property Finder.

The sales transactions in November were also 45 per cent higher when compared with November 2019, before the onset of the Covid-19 pandemic, the report said.

“The data clearly shows that investors and consumers are confident in Dubai’s future, which is reinforced by proactive government initiatives, attractive real estate projects and the vision of the city,” said Lynnette Sacchetto, director of research and data at Property Finder.

Property prices have rebounded in Dubai after the pandemic disrupted the global economy. The UAE government's moves to provide more flexible visas has helped attract more investors with the emirate recording interest from more non-resident and high-net worth buyers, according to a recent Knight Frank study.

Last month, 54 per cent of all property transactions in the emirate were for secondary or ready property while off-plan property accounted for 46 per cent of the deals, according to the data.

The off-plan market had transactions involving 3,219 properties worth Dh6.84bn during the month. Transactions in the ready market reached 3,781, with a total value of Dh11.12bn.

Expo 2020 Dubai, which began in October, may have had a positive impact on total sales transactions last month, according to the Property Finder.

“The sales trends continue to thrive month-on-month and it is interesting to note that November 2021 had the highest amount of sales transactions since Expo 2020 was announced in December 2013,” Ms Sacchetto said.

"The question on everyone’s mind is: are we starting to see the effects of Expo 2020 in the real estate market. The trends are giving us the answers."

The world's fair has been attracting a large number of visitors, recording 3 million visits in the first five weeks since it began on October 1, official data shows.

The UAE has also reached a major milestone in its coronavirus vaccination campaign as 100 per cent of eligible people have received their first dose. More than 90 per cent have received both doses, the National Emergency Crisis and Disasters Management Authority said last month.

Residential property prices in Dubai jumped 21 per cent in the first 10 months of the year to Dh1,235 per square foot, Knight Frank said last month.

Dubai, the commercial and tourism centre of the Middle East, recorded 55,651 sales transactions worth Dh135.4bn in the eleven months of this year, up 88.39 per cent compared with the whole of 2020.

This is already the highest yearly sales figure since 2014, Property Finder said.

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