Dubai real estate sector is once again in the spotlight as one of the most popular real estate markets, where new individuals and investors flock to purchase luxury properties.
Dubai Real Estate Market Report for the 1st half of 2021 has been recently released. An analytical real estate brokerage company reported that in the first half of 2021, the number of properties sold increased by 70% compared to the same period last year, and by 52% compared to the first half of 2019. Favorable economic climate in Dubai has boosted interest in Arab real estate and has led to active investment in residential properties over the past six months.
According to preliminary forecasts, prices for Arab real estate will rise for at least another 2 years, with the US Federal Reserve System reporting that interest rates will remain at their current low level until 2022, and supply of new units will peak and, is expected to decline from next year.
Transactions and prices in the first half of 2021 in cottage communities have increased. The number of transactions for villas purchase has increased by 167%, while the number of transactions for townhouses has increased by 97%.
According to Dubai Lands Department, prices have risen by almost 40% in some communities, such as in Jumeirah Islands, while in others they have decreased by more than 25%, such as in Al Habtoor City and South Dubai. Average property prices for 1m2 increased by 24% for villas / townhouses and by 3.0% for apartments in the 1st half of 2021.