Dubai real estate transactions touch AED 300 billion in 2021

Dubai's real estate market recorded a total of 84,772 transactions worth AED 300 billion in 2021.

That's according to the Dubai Land Department's (DLD) annual report, which reveals a 65 per cent growth in the number of transactions and a 71 per cent increase in value compared to 2020.

As many as 52,415 investors concluded 72,207 new investments in 2021 worth AED 148 billion, representing a 73.7 per cent growth year-on-year in the number of investments, a 65.6 per cent rise in the number of investors, and a 100 per cent increase in the value of investments.

"Dubai’s robust infrastructure, flexible legislations that have kept pace with evolving market conditions, and its safe environment have all contributed to deepening investment confidence in its real estate sector," said His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, the Crown Prince of Dubai.

"The directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to make Dubai the world’s best city to live and work has served as a key driver in increasing its attractiveness as a global investment destination," he added.

#Dubai records 84,772 real estate transactions representing a value of AED300 billion in 2021, according to the annual transaction report issued by the Dubai @Land_Department (DLD).https://t.co/cP3acKkuS3 pic.twitter.com/YwLG4nrOqA

— Dubai Media Office (@DXBMediaOffice) January 5, 2022

Top areas

The Dubai Marina area saw the highest number of transactions (7,968), followed by Business Bay (5,687), Al Thanyah Fifth (5,092), Al Barsha South Fourth (4,813), Hadaeq Sheikh Mohammed bin Rashid (4,352), Burj Khalifa (4,279), Wadi Al Safa 5 (3,536), Al Hebiah Fourth (3,261), Al Merkadh (3,150), and Palm Jumeirah (2,803).

Dubai Marina also saw the highest value of transactions with over AED 28.6 billion, followed by Palm Jumeirah (AED26.6 billion), Hadaeq Sheikh Mohammed bin Rashid (AED15.8 billion), Burj Khalifa (AED14.2 billion), Business Bay (AED13.19 billion), Al Thanyah Fifth (AED8.19 billion), Wadi Al Safa 5 (AED8 billion), Al Yufrah 1 (AED7.3 billion), Al Thanyah Fourth (AED7.2 billion), and Al Hebiah Fourth (AED7.19 billion).

The highest number of real estate mortgages were recorded in the Dubai Marina area (1,440), followed by Hadaeq Sheikh Mohammed bin Rashid (1,046), Al Thanyah Fifth (1,015), Burj Khalifa (922), Al Barsha South Fourth (875), Nad Al Sheba 3 (864), Al Yelayiss 2 (717), Al Thanyah Fourth (675), Me’aisem First (655), and Palm Jumeirah (618).

Palm Jumeirah (over AED10.39 billion) and Dubai Marina (AED10 billion) topped the list of areas in terms of the value of mortgages, followed by Al Yufrah 1 (AED 6.49 billion), Warsan 2 (AED4.7 billion), Business Bay (AED4.55 billion), Al Barsha South Fourth (AED3.4 billion), Burj Khalifa (AED3.4 billion), Al Wasl (AED3 billion), Al Thanyah Fifth (AED2.9 billion), and Al Thanyah Fourth (AED2.6 billion).

The mortgage data reflects the confidence of Dubai’s national and foreign banking sector in the emirate's real estate market, which contributes to the availability of liquidity and cash flows as well as financing solutions offered by banks to encourage investment in Dubai's real estate sector.

Real estate brokers

As many as 3,171 new brokers entered the market, increasing the total number of registered real estate brokers to 8,002.

According to the DLD report, 2,715 brokers in Dubai's real estate market are women. A total of 1,421 brokerage offices were registered in the emirate.

The value of real estate brokers' commissions in Dubai's real estate market in 2021 exceeded AED3 billion through 12,067 transactions.

Ten new real estate valuators entered the market, increasing the total to 71 valuators registered with DLD, and two new valuation offices entered the market, increasing the total to 38.

Completed projects

A total of 35 real estate projects with a value exceeding AED 11 billion were completed in 2021 and 319 projects are in progress. Additionally, 602,714 Ejari contracts were registered in 2021, of which 315,222 were new contracts.

A total of 6,168 real estate permits were also issued last year.

Furthermore, 49,790 real estate units were registered in 2021. A total of 41,020 units were sold, with a value exceeding AED68.5 billion, while 8,030 villas worth over AED18.2 billion were sold.

Three new real estate service trustee offices were registered in 2021, bringing the total number to 13, while the total number of real estate registration trustee offices remained at 13.

Real estate licences

In 2021, DLD issued 4,230 real estate licences.

They were distributed by activity as follows: brokerage in the sale and purchase of properties (1,229), follow-up services (1,173), brokerage in rental properties (890), administrative supervision services for properties (262), purchase and sale of land and properties (159), private real estate rental and management services (128), real estate development (107), commercial complex (91), administrative supervision services for jointly owned property management companies (70), real estate mortgage broker (42) licenses, and shopping centres and malls (33).

The remainder of the licences were granted for other commercial activities, such as real estate rental and management services for third parties, real estate valuation services, real estate representation office, and real estate survey services, among others.

Distribution of new investments

The report revealed that there were 6,897 investors from the GCC that registered 8,826 investments worth over AED16.88 billion.

A total of 6,097 Arab investors recorded 7,538 investments, with a value exceeding AED12.4 billion.

Dubai’s real estate sector also attracted 38,318 foreign investors, who concluded 51,553 new investments worth over AED99 billion.

DLD's statistics also revealed that 17,705 women registered 22,165 investments worth over AED38.4 billion in 2021, a 72 per cent increase compared to 2020.