Going by the latest report released by ValuStrat, analysts and industry specialists pointed out that market sentiments are expected to pick up further this year and also mentioned that rents for residential and commercial properties would continue to rise in 2022.

A section of the report reads, “2021 was a year of recovery from pandemic challenges and a beginning of the new normal. Prices and rents mostly recovered to pre-pandemic levels, record-breaking sales volumes and values.” Haider Tuaima, head of Real Estate Research at ValuStrat, said the ValuStrat Price Index (VPI) for Dubai’s rental values showed 67.3 points last year, up 6.7 percent quarterly and 18.9 percent annually.

But, rent is still averaging 4.9 percent lower than when the Covid-19 pandemic began and the weighted average annual rent for apartments as of the fourth quarter of 2021 was Dh58,707 and for villas was Dh236,650.

Tuaima told the media, ““No doubt villas performed better than apartments as far as rents are concerned. Villas up 26.8 per cent year-on-year basis and 6.3 per cent quarter-on-quarter basis while apartments’ rents grew 14.3 per cent year-on-year basis and 6.9 per cent quarter-on-quarter basis.”

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ValuStrat said in its report, “On a citywide level, capital values of residential homes commenced a growth trend, a promising signal that the property market has indeed bottomed out. Clear improvements in capital values were observed in 96 percent of locations monitored by the VPI.”

Even though the global slowdown and the coronavirus pandemic did impact the real estate market in Dubai, activities and sales in the market has picked up as more and more people are looking to own their own properties.

Dubai recorded 3787 real estate transactions in the month of February this year, according to the 12th edition of Mo’asher, Dubai’s official sales price index that was launched by Dubai Land Department (DLD) in cooperation with Property Finder. Transactions worth $2 billion were completed during the period, which is an 8.9 percent rise when compared to January.

The report further revealed that around 67 percent of the transactions were for secondary properties whereas, around 33 percent were for off-plan properties. Around 10.3 percent of all sales in the villas/townhouses sector were reported Nad al Sheba, followed by Dubai Hills Estate with 8.3 percent, Green Community with 8 percent, Arabian Ranches with 4.7 percent and Dubailand with 4 percent.

Dubai’s real estate sector recorded around 51,414 sales transactions worth Dh175 billion in 2020 despite the coronavirus pandemic and economic uncertainties, according to a report by the Dubai Land Department (DLD). During the period, Dubai attracted 31,648 new investors and investments worth over Dh73.2 billion.

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This is about 30 percent of the units that are scheduled to be handed over in 2020.

According to ValuStrat Price Index (VPI) report, second-quarter residential home sales transactions accounted to 4,459 units, down 48.8 percent quarter-on-quarter and 39.3 percent year-on-year with a value of Dh7 billion and an average ticket size of Dh1.57 million.

Shaher Mousli, chairman of Arthur Mackenzy Properties Group told the media, “While there is a 50 percent decrease in total number of transactions during second quarter of 2020, however the occupancy rate for rentals has gone up to 84 percent, which is in turn supplementary to the sales and purchase market and a very positive sign for the recovery of the industry by fourth quarter of this year.”

“Rental RoI is lower than what it used to be. but the same is reflected in sales prices which have corrected to justify that RoI paving the path to a healthy eight per cent to nine per cent return. All this coupled with the positive geopolitical movements being taken by our wise leadership, will help review the markets to their finest state.”

The real estate sector in Dubai recorded the best first-quarter performance in the last six years, despite the coronavirus pandemic, according to ValuStrat’s May 2020 report.

The first quarter of this year saw cash sales of ready homes up 30.4 percent annually with no change quarterly.

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The first quarter of this year saw cash sales of ready homes up 30.4 percent annually with no change quarterly.

The report on the Dubai real estate sector further revealed that April cash sales transaction volume performance was just half of what was reported for March. Ready homes sales volume witnessed a steep monthly fall of 75 percent, off-plan homes sales declined 32 percent when compared to March.

Developers such as Emaar, Dubai Properties, Dubai Holding, and Danube were among the best sellers during the first quarter.

The top locations were the real estate deals were completed include Dubai Creek Harbour, Jumeirah Village, Umm Suqeim Third, and Jumeirah Beach Residence, and most transacted ready homes were in Palm Jumeirah, Dubai Marina, Town Square, Arabian Ranches and Downtown Dubai.

ValuStrat said in its report, “The average asking price for ready apartments stood at Dh1,178 per sq ft displaying a decline of 2.5 percent quarterly, and 5.9 percent lower than in the same period last year. For ready villas, the average asking price was Dh876 per sq ft indicating prices declined 1.6 percent quarterly and 12.1 percent annually.”

The residential real estate market in Dubai felt by 8.8 percent year-on-year in 2019, according to data released by the Dubai Land Department (DLD).

Rents in Dubai also declined during the same period. Rents were down by 7.2 percent in 2019.

However, rental yields remained unchanged at 6.4 percent.

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