Real estate in Dubai: market performance in 2021, figures and analysis
As you may know, the Dubai real estate market has had an unprecedented year in 2021. Investors and expatriates have been investing heavily in Dubai real estate, both in ready-made properties and off-plan programs.
For the year 2021, there are 3 main trends to remember:
- Very high demand for high-end apartments
- Strong increase in the price of villas
- Significant increase in rental prices
In terms of numbers, the data for the year 2021 is impressive, and provides a completely objective measure of the market's evolution and the popularity of Dubai.
Record sales volume in AED, with over AED 150,000,000,000 of real estate transactions in 2021, for purchase :
Highest number of sales since 2013 in Dubai
Highest number of sales EVER for beach apartments and villas, with over 25,000 units sold in 2021
The largest number of villas sold in 2021, STILL, with 7,580 villas sold off-plan and 6,000 villas sold ready:
Finally, Dubai has recorded the sale of 39,570 apartments in 2021, the highest figure since 2013. Impressive figures, which confirm the attractiveness of the city of Dubai.
More than 60,900 sales in Dubai by 2021
With nearly 61,000 sales in 2021, the Emirate of Dubai has recorded an exceptional performance. That's more than 75% more transactions than in 2020, when the value in AED jumped 110% to 150 billion dirhams.
5 major factors explain the real estate figures in Dubai in 2021
- The excellent management of the covid crisis by the Dubai authorities, with massive vaccinations from the beginning of the pandemic and effective sanitary protocols accepted by the population and tourists
- The increase of more than 57% of the number of real estate agents, numbering 7500 and working for 1800 real estate agencies.
- Government support for the economy through attractive schemes to relocate companies to Dubai
- The World Expo, which began in October 2021 and is the largest event ever held in an Arab country
- The extraordinary demand for luxury properties, priced above 10 million dirhams, which has increased by 235% compared to 2021, and by 115% compared to 2013, which held the record until then.
The evolution of the number of sales in 2021 in Dubai by type of property :
- 39,570 apartments (+63.4% vs. 2020)
- 13,653 villas (+112% vs. 2020)
- 2361 commercial premises (+102.3% vs. 2020)
- 5374 lots (+81.1% vs. 2020)
Real estate prices in 2021 in Dubai
Median prices in Dubai in 2021
- Apartments already ready: 1,000,000 AED, or 240,000€, +19% vs 2020
- Villas already ready: 2,400,000 AED, or 586,000€, +11% vs 2020
- Off-plan apartments: AED 1,100,000, or €268,000, +15% vs 2020
- Villas on plan : 1,700,000 AED or 415,000€, +24% vs 2020
Median price per m2 in Dubai in 2021
- Apartments already ready: 10,437 AED/m2, or 2548€/m2, +16% vs 2020
- Villas already ready: 8,285AED/m2, or 2023€/m2, +27% vs 2020
- Off-plan apartments: 21,520AED/m2, or 5255€/m2, +5.3% vs 2020
- Villas on plan : 9,296AED/m2 or 2270€/m2, +24% vs 2020
Transactions on plan and transactions on ready-made properties
Dubai's real estate market recorded 25,280 transactions on properties sold off-plan in 2021, an increase of 51% compared to 2020. The increase is even greater in the secondary market, properties sold off-plan, which rose by 92% compared to 2020, with 36,400 transactions recorded.
Figures for apartments in 2021 in Dubai
It should be noted that 48% of the apartments sold in Dubai in 2021 were purchased off-plan, and 52% were ready. In value, the apartments on plan represent 54% of the market (35.1 billion dirhams), against 46% for the apartments already ready (30.5 billion dirhams).
Figures of villas in Dubai in 2021
For villas in Dubai, the figures show that 44% of villas sold in Dubai in 2021 were sold off-plan, compared with 56% for ready-built villas. In terms of financial volumes, off-plan villas represent only 32% of total transactions (12.9 billion dirhams) against 68% for ready villas (27.2 billion dirhams).
Dubai real estate supply in 2021, key figures and indicators
About 30,000 units have been delivered in 2021. Emaar alone accounts for 22% of the total number of units delivered in 2021, followed by Damac with 16% and Dubai Properties with 7%. The apartments and villas delivered in 2021 in Dubai were delivered in these areas in particular:
- Jumeirah Village Circle, 4143 units (13%)
- Business Bay, 3535 units (11%)
- Marina, 2588 units (8%)
- Creek Harbour, 2401 units (8%)
- Damac Hills, 1756 units (6%)
New real estate programs in Dubai in 2021
Compared to 2020, the launch of new real estate programs by Dubai developers increased by 69.83%. The demand was there and developers responded. A total of 22,946 units were released in 2021, spread across 127 projects.
The neighborhoods with the most units coming on the market in 2021 are:
- Mohammad Bin Rashid Al Maktoum City 3,626 units (17.06%)
- Damac Hills Dubai 3377 units (15.89%)
- Business Bay 1898 units (8.93%)
- Jumeirah Village Circle 1535 units (7.22%)
- Dubai Investment Park 1174 units (5.52%)
- Al Furjan 1168 units (5.49%)
- Arabian Ranches 1023 units (4.81%)
Conclusion
The Dubai real estate market is growing rapidly and demand has been increasing in 2021 and will continue to do so in 2022. The situation in Europe is causing a lot of movement to Dubai, especially among the wealthy, in search of the most luxurious units. Real estate prices are still 3 to 4 times lower than in major European and world capitals, and investors know that this will not last forever. The increase in prices is supported by population movements, which need apartments and villas already available, which solidifies the market. We are not in a bubble situation where the market is only supported by investors. We sincerely believe, from the numbers and from our day-to-day experience, that we are only at the beginning of Dubai's history and that demand and price growth should largely continue into 2022.
