Dubai’s real estate sector records transactions worth Dhs72.5bn in H1 2020

Dubai’s real estate sector recorded 22,779 transactions during the first half of 2020, representing a total value of Dhs72.5bn, confirmed a report issued by the Dubai Land Department (DLD).

The second quarter of 2020 witnessed more than 7,834 transactions worth over Dhs24.5bn, despite the Covid-19 pandemic.

In Q1 2020, 9,160 investors completed 11,940 deals worth Dhs21.2bn, while investments in Q2 2020 decreased with 5,528 investors completing 6,523 deals worth almost Dhs11bn.

There were a total of 14,688 investors who undertook 18,463 transactions in H1 2020 worth Dhs32.15bn.

The @Land_Department report states that #Dubai real estate transactions for the second quarter of 2020 exceeded AED24.5 billion with 7,834 procedures, while 22,779 procedures were recorded during H1 2020, representing a total value of AED72.5 billion. pic.twitter.com/D5GRBQjMDG

— Dubai Media Office (@DXBMediaOffice) July 25, 2020

In Q2 2020, the emirate’s real estate market saw 1,223 investors from the GCC with 1,431 transactions worth over Dhs2.1bn, while 706 Arab investors completed 798 deals worth approximately Dhs1.2bn.

There were a total of 3,444 foreign investors who undertook 3,889 deals valued at Dhs5.8bn, in the second quarter of the year.

The report added that in H1 2020, 2,895 GCC investors concluded 3,712 transactions worth Dhs6bn, while 1,839 investors from the Arab region finalised 2,203 deals worth over Dhs3.2bn.

The number of foreign investors in H1 2020 year-on-year increased, with 9,213 investors striking 11,240 deals worth over Dhs16.2bn.

Women accounted for a substantial share of the number and value of transactions. In Q2 2020, 1,781 female investors finalised 1,922 deals worth Dhs2.6bn. In H1 2020, 4,536 female investors completed 5,112 transactions worth Dhs6.6bn.

With regards to mortgage registration of lands, buildings, and units in Q2 2020, Hadaeq Sheikh Mohammed bin Rashid ranked first with 205 transactions worth Dhs341m, followed by Me’aisem First with 113 transactions worth Dhs113m, and Jabal Ali First with 107 transactions valued at Dhs156m.

The next seven positions were secured by Burj Khalifa, Al Yelayiss 2, Dubai Marina, Al Thanyah Fourth, Al Barsha South Fourth, Wadi Al Safa 7, and Al Thanyah Fifth respectively.

As for sales registration in Q1 2020, Al Merkadh ranked first with 631 sales transactions worth Dhs1.52bn, Dubai Marina came in second with 515 transactions worth Dhs1.1bn, and Al Barsha South Fourth came in third with 430 transactions worth Dhs371m. These were followed by Business Bay, Wadi Al Safa 5, Hadaeq Sheikh Mohammed Bin Rashid, Al Warsan First, Burj Khalifa, Al Khairan First, and Al Thanyah Fifth respectively.

In H1 2020, Hadaeq Sheikh Mohammed Bin Rashid topped the areas with the highest mortgage registration transactions with 558 transactions worth Dhs996m, followed by Dubai Marina with 293 transactions worth Dhs817m, and Jabal Ali First with 272 transactions worth Dhs1.26bn.

In terms of sales, Dubai Marina topped the list with 1,532 transactions worth Dhs3.375bn, followed by Business Bay with 1,244 transactions worth Dhs1.653bn, and Al Merkadh with 1,192 transactions worth Dhs2.522bn.

The Dubai Media Office added that in a separate report issued by the Dubai Statistics Center, the real estate sector registered a year-on-year growth of 3.7 per cent in Q1 2020, contributing 8 per cent to the overall economy and pushing it up by 0.27 percentage points.

Last year, real estate activities achieved a growth of 3.3 per cent and contributed 7.2 per cent of Dubai’s GDP, with an added value of Dhs29.4bn, compared to Dhs28.5bn in 2018 and represented a 10.7 per cent contribution to Dubai’s overall economic growth.

Earlier this month, DLD introduced a new real estate promotion drive to help spur interests and attract investments into the sector.

Read: Land Department launches ‘Invest in Dubai’ virtual platform to connect stakeholders

DLD’s ‘Invest in Dubai’ is a year-long initiative, that aims to highlight Dubai’s position within the global real estate industry through an automated, virtual platform that features stakeholders including developers, investors, and brokers, linking them in turn to investors worldwide, as well as those seeking to live in Dubai.

Also in July, Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai and Minister of Finance, issued a directive for business tenants of Dubai Developments Group properties in the emirate, including small firms and entrepreneurs, to be exempted from paying rents for periods ranging between three to six months.

Read: Dubai Developments Group offers tenants rent relief of upto six months

The Dhs200m relief package is expected to benefit 1,500 businesses and around 10,000 employees working within those businesses.