On Tuesday, August 6, residential real estate transactions in Dubai reached record levels of AED 3B (USD 817M)

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Residential real estate transactions in the emirate of Dubai hit yet another high of AED 3B (USD 817M) on Tuesday (August 6).

Property deals included 408 sales transactions of AED 893.6M (USD 243M), 87 mortgage deals amounting to AED 2.16B (USD 588M), as well as 16 gift deals worth AED 26.98M (USD 7M), as stated by Dubai’s Land Department (DLD)

The sales comprised 370 apartments and villas amounting to AED 741M (USD 202M) as well as 38 land plots worth AED 153M (USD 42M).The mortgages included 66 apartments and villas valued at AED 328M (USD 89M) and 21 land plots worth AED 1.83B (USD 498M).

The total volume of real estate transactions in the emirate of Dubai constituted over AED 2.4B (USD 653M) on Monday and AED 1.8B (USD 490M) on September 1.

In recent months, a sharp increase has been observed in the Dubai real estate market. For example, over the past 23 months, sales transactions worth more than AED 1B (USD 272M) have been concluded on several days and weeks in a row.

Market recovery in the emirate is also indicated by a surge of office rentals in Dubai, which is currently higher than in London and New York.

The growth comes as global businesses and banks look to Dubai to expand into the emerging global financial hub.

As Bloomberg stated, office rentals in the emirate are rebounding for the first time in 6 years and increasing faster than in New York or London.

Skyscrapers such as ICD Brookfield Place, the height of which constitutes 928.5 feet, are especially popular among tenants of office premises. Bloomberg reported that 90% of offices and retail spaces in the building are now taken or under offer, with a long wait list for the rest.

Israeli fintech firm Rapyd, UBS Group AG, as well as Pernod Ricard SA, which relocated staff from Hong Kong, are among the tenants of ICD Brookfield Place.

The turnaround and of the emirate’s real estate market indicates significant changes in the Dubai commercial real estate sector, which suffered the most during an oil-induced property slump in 2014.

American real estate company CBRE said that prime office rentals increased 7% in the year through to June and grade A office space rose by 7.2%. Lower grade workspaces rose by 3%. Prime rentals in London and New York increased 1.4% and 3% or less, respectively.

In addition, the emirate of Dubai attracts expats to live, work and invest due to its rapid response to the pandemic and relatively easy access to visas.

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