Real Estate is a precious commodity in Dubai. It is no secret that this thriving city has very little land left to spare. There have already been a number of projects that have tried expanding the city’s surface area. However, this does not mean that Dubai’s real estate market is running low on business. In fact, during November 2018 and November 2019, there have been a record 44,590 real estate transactions within the city. This is a record high for the city of Dubai.
Out of these 44,590 transactions, 36,799 were residential units that were sold during January and November. The highest number of residential unit transactions in Dubai took place in 2017, which is 37,338. The 2018 to 2019 12-month period was indeed quite busy for Dubai’s real estate sector. In November, 5,037 real estate deals took place. This is an 11-year record high for a single month. October and September were fruitful months as well with 4,774 and 4,007 transactions respectively.
If we look at these transactions from a monetary value point of view, the month of September still takes the cake with deals that were worth a total of 9.27 billion Dirhams. After November, February was the runner up month with transactions amounting to a total of 8.71 billion Dirhams. The least amount of valuable transactions took place in August (only 4.27 billion).
If we sum up all the transactions that took place in 2018-2019, Dubai’s real estate enjoyed 76.6 billion Dirhams of business. This figure does not count land grants, mortgage payments, and other types of transactions. According to analysts, these figures indicate that the real estate market is preparing for an upturn before the 2020 expo. Consumer confidence is on the rise and therefore people are looking to invest in this sector. Consumer confidence is being given a boost by low rates, favorable payment plans, and an excess supply of property in the market. Everything is for attracting investors of all sizes at the moment. The 2020 expo will be quite exciting if things continue to move forward as they are at the moment.
The government has recently initiated a few reforms that have further pushed people into investing in real estate. These reforms have helped lower barriers to investing in property. And some of these reforms have even made mortgage payments a lot more forgiving, this has further encouraged people to begin investing in real estate again.
Things are indeed looking exciting for Dubai’s real estate sector. This sudden flow of business is making process fluctuate at the moment. However, analysts believe that by H2 of 2020, things will begin to calm down. But this does not mean that business is expected to slow down as well. 2020 is looking like a great year for Dubai’s real estate sector. Investors and also regular buyers are expected to make purchases throughout the coming year. Dubai can expect a steady inflow of real estate business.