Dubai’s real estate sector sets a new record in 2020. The secondary market transactions of the property sector crossed an astonishing two thousand mark in November & December which was the highest figure since 2013.
According to Data Finder, December witnessed 2,485 secondary transactions worth AED 6.12 billion, which was the highest figure in the last 7 years. December 2020 figures were 9.7% higher compared to November 2020 which reported 2,179 deals, which was at the second-highest number since 2013.
The secondary sales were the lowest in April & May 2020 due to the lockdown. However, since the easing of restrictions, the secondary residential real estate sales went on to break all past records.
Annual Transactions Crossed AED 72 Billion:
There were 35,434 transactions that took place in 2020 worth AED 72.49 billion. This comprised 14,749 off-plan properties worth AED 20.31 billion and 20,685 secondary/ready properties, worth AED 52.18 billion.
There were 12,978 transactions took place in 2020 for mortgage deals worth AED87.39 billion. All of them were for secondary/ready property.
Residents Prefer to Buy Property Over Renting :
Dubai reported the highest sales transactions – both in terms of volume and value in the Q4, 2020. The total number of transactions that took place in Q4 was 11,065 valued at AED 22.07 billion. The prime reason for this surge in sales is most of the residents now prefer to buy the property over renting it.
Top Reasons for the Surge in Transactions:
For several years, immigrants have been hesitant to buy property in Dubai or the UAE as it does not offer long-term stay back options such as – permanent residency (PR) or citizenship programs like Canada, Australia, New Zealand, or the US. However, the launch of the Golden visa program (which offers long-term residence visas to live, work and study in the UAE without the need of a national sponsor with 100 % ownership of their business) has again made the region attractive for foreign investors and immigrants. These visas are issued for 5 or 10 years and get renewed automatically.
The launch of the Golden Visa program has changed the global perception of Dubai as a stable and immigrant-friendly emirate to work & live just like many western countries. This has attracted more investors, buyers, developers, and talented immigrants to the UAE’s real-estate sector, resulting in a colossal increase in the volume and value of real estate deals.
Furthermore, the list of other government initiatives such as – the enactment of Cohabitation laws, resuming trade relations with Qatar, hosting EXPO 2020, and 100% Ownership of Businesses by Expats, Covid vaccination, and expansionary fiscal stances by the federal and local governments have led to this magical rise in real estate transactions.