KHALEEJ TIMES, Sunday, Jan 30, 2022 | Jamada Al-Aakhirah 27, 1443
2021 saw exceptional results that will contribute to driving real estate sector in next 50 years: DLD
Emirates: The year 2021 witnessed an exceptional performance for
Dubai’s real estate market, supported by the results and numbers in December,
whether in terms of real estate sales transactions, or the monthly index
numbers, new research has shown.
December 2021 witnessed the registration of 5,601 sales transactions worth
Dh15.68 billion, resulting in over 84,196 total transactions in 2021 worth Dh300
billion, which is the highest annual value ever in Dubai’s history. In December
2021, the overall monthly Index recorded 1.156 and an index price of
Dh1,115,937, making it the highest since February 2019 in terms of index numbers
and the highest in value since August 2018. This is according to the data of the
22nd edition of Mo’asher, Dubai’s official sales price index issued by Dubai
Land Department (DLD) in cooperation with Property Finder.
The base year for Mo’asher is 2012, and the base month for the monthly index is
January 2012, with the base quarter for the quarterly index being Q1 2012. The
data affirmed that 2021 concluded with record numbers, positively reflecting on
2022, which is the first year in our journey towards the next 50 years, during
which Dubai and the UAE seek to build the best global economy.
In December 2021, the overall monthly Index recorded 1.156 and an index price of
Dh1,115,937, the apartments monthly Index recorded 1.182 and an index price of
Dh1,000,253, and the villas/townhouses monthly Index recorded 1.167 and an index
price of Dh1,990,496.
In Q4 2021, the overall quarterly Index recorded 1.181 and an index price of
Dh1,118,218, The apartments quarterly Index recorded 1.184 and an index price of
Dh1,000,054, and the villas/townhouses quarterly Index recorded 1.204 and an
index price of Dh2,060,863.
In 2021, the overall yearly Index recorded 1.193 and an index price of
Dh1,133,776, the apartments yearly Index recorded 1.201 and an index price of
Dh1,041,679, and the villas/townhouses yearly Index recorded 1.198 and an index
price of Dh1,961,679.
December 2021, in terms of overall index numbers, was the highest since February
2019 and the highest for index value since August 2018. For apartment numbers,
last year was the highest in index numbers since March 2019 and for index value
since April 2019. The index for villas/townhouses performed the best, with
December 2021 being the highest for index number and index value since February
2019.
Dubai Real Estate had over 84,196 real estate transactions in 2021 worth almost
Dh300 billion; the value of these transactions is the highest it’s ever been in
the recorded history of Dubai’s real estate sector. Compared to 2020, the volume
of transactions grew by 66.3 per cent, and the value of transactions grew by 72
per cent.
The year 2021 broke a 12-year record in terms of real estate sales transactions
value, with properties worth Dh151.07 billion sold throughout the year. The
total number of real estate sales transactions that took place were also the
highest since 2013.
In 2021, 59.6 per cent of all transactions were for secondary/ready properties
and 40.4 per cent were for off-plan properties. When we look at the volume of
sales transactions, the off-plan market transacted 24,761 properties worth a
total of Dh45.5 billion, and the secondary market transacted 36,480 properties
worth a total of Dh105.56 billion. This is also the highest secondary real
estate sales transaction value since 2008.
2021, when compared to 2020, showed an increase of 74.77 per cent in sales
transaction volume and an increase of 110.19 per cent in value. To put it in
perspective, when we compare to pre-Covid-19, times such as 2019, 2021 showed an
increase of 55.47 per cent in volume and an increase of 90.10 per cent in value.
Q4 2021 had a total 17,942 transactions worth Dh46.75 billion both volume and
value of transactions being the highest since Q4 2013.
In Q4 2021, 55.9 per cent of all transactions were for secondary/ready
properties and 44.1 per cent were for off-plan properties. When we look at the
volume of transactions, the off-plan market transacted 7,913 properties worth a
total of Dh16.92 billion, and the secondary market transacted 10,029 properties
worth a total of Dh29.82 billion.
Q4 2021, when compared to Q4 2020, showed an increase of 64.12 per cent in sales
transaction volume and an increase of 114.74 per cent in value. Compared to Q4
2019, Q4 2021 showed an increase of 47.53 per cent in volume and 97.59 per cent
in value.
Comparing Q4 2021 to Q3 2021, the volume of off-plan transactions increased by
14.53 per cent, and the secondary/ready property sales transactions increased by
11.22 per cent. The value of off plan sales transactions increased by 25.38 per
cent, and the value of secondary sales transactions increased by 3.36 per cent.
We have seen a surge in off-plan sales transactions in Q4, which is reflected in
the fact that this is the highest volume and value of off-plan sales
transactions in a given quarter since Q1 2010.