Dubai launched the "Cityscape Global 2021" summit and exhibition yesterday, running from November 7 to 11 at the Dubai Exhibition Centre, part of the Expo 2020 Dubai site. The Dubai Land Department, in collaboration with the global real estate consulting and investment firm JLL, introduced the first "Commercial Property Price Index for Dubai," measuring the performance of commercial properties in terms of sales and prices.
The Dubai Land Department reported that real estate sales in Dubai reached 42 billion dirhams in the third quarter of this year, marking the highest quarterly value in eight years.
In detail, Sultan Butti bin Mejren, the Director of the Dubai Land Department, stated that real estate sales in Dubai achieved 15,000 transactions worth 42 billion dirhams in the third quarter of this year, representing the highest sales value since Q4 2013. Additionally, mortgage registrations in the first quarter of 2021 saw the highest number recorded at the department, exceeding 6,000 mortgages valued over 39 billion dirhams.
Bin Mejren affirmed during the "Cityscape Global 2021" event that the real estate market in Dubai remained stable even during the Covid-19 pandemic, without a significant decline. Sales recorded between 20 and 22 billion dirhams during the two months of activity closures in 2020. He added that this indicates continuous improvement, highlighting that the current momentum supports this improvement, especially due to the organization of Expo 2020 Dubai, the UAE's stature, and the incentives provided by the Dubai government.
**Surplus Supply**
In response to a question about potential surplus supply in the Dubai real estate market, Bin Mejren stated, "There is no such thing as surplus supply; we have projects launched that sell within a week or two." He pointed out that new investors coming to Dubai have become significant, with a higher percentage of new investors compared to those reinvesting in the sector.
Bin Mejren explained that new investors have chosen Dubai as a place for residence and investment, particularly high-net-worth individuals, reflecting great confidence in Dubai as a city and the UAE as a capable government that has achieved significant success. He emphasized that conditions continue to improve, stating, "We are moving steadily towards achieving Dubai's Urban Plan 2040 for a better future."
**Investor Confidence**
He continued, "We are witnessing a new launch for Cityscape 2021, and we step confidently toward a promising real estate future, having overcome the repercussions of the Covid-19 pandemic in all aspects of our lives; we have faced it with resilience and strength, leading to proactive growth that makes the real estate sector stronger and more mature."
Bin Mejren confirmed that overcoming the pandemic was the result of swift and professional leadership in addressing the crisis, providing all necessary human and technical resources to ensure the health and safety of the community, alongside support packages and incentives specifically for the private sector. He noted that high government performance has increased investor confidence in Dubai's economy, reflected in real estate market performance, which has seen significant growth, enhancing its activities and attractiveness.
**Innovative Services**
Bin Mejren revealed that the Dubai Land Department will launch several smart and innovative services in line with the emirate's digital trends. In addition to the Commercial Property Price Index in partnership with JLL, the department will introduce a "Real Estate Investment Portal" on its website and showcase developments related to the building survey and classification project.
**Price Index**
Furthermore, the Dubai Land Department, in collaboration with JLL, launched the first "Commercial Property Price Index for Dubai," as part of a memorandum of understanding signed between the two parties at the end of 2020. This index is the only one of its kind in the emirate and will serve as a reliable data source for investors, companies, and institutions, helping them track commercial market performance when making investment decisions and managing portfolios.
Majda Ali Rashid, the Executive Director of the Real Estate Investment Promotion and Management Sector at the Dubai Land Department, stated that the Commercial Property Price Index will add value to the real estate sector in Dubai, and they look forward to partnering with JLL to ensure that the index maintains high levels of reliability and transparency, which contribute to enhancing the real estate investment climate in the emirate.
On his part, Terry Delahaye, the CEO of JLL Middle East and Africa, noted that the launch of the index is a significant step in their mission to improve real estate transparency, attracting more institutional investors from local, regional, and global markets to the region. The index is expected to be released quarterly in both English and Arabic and will serve as a benchmark for analyzing commercial property performance in Dubai.
**Expo 2020 Dubai Contributed to Real Estate Growth**
Chris Spiller, Director of the Cityscape Group at Informa Markets, confirmed that the UAE's swift response to the Covid-19 pandemic revitalized the country's real estate market. He added that the launch of Expo 2020 Dubai has contributed to the growth of the real estate market in Dubai, allowing investors to explore new areas within the city, particularly near the Expo site, and has facilitated the launch of new projects in the industrial and commercial real estate sector.
