Last Month in Real Estate – UAE property market news updates for May 2021
- RERA and Etihad ESCO Sign MoC
- DLD Reports an Increase in Dubai Sales Transactions
- Reportage Properties Records 200% Growth in Sales
- Floating Houses Launched in the UAE
- UAE Developer Accepts Dogecoin for Transactions
- Aldar Launches Phase 3 of Noya
- FAQs
As we roll into June, it’s time to take a look back at developments that made waves in the UAE property market during the last month. From the launch of the UAE’s first moveable floating houses” to the introduction of Dogecoin transactions in Dubai’s property market, here is all the real estate news in the UAE that made headlines in May 2021!
Top real estate news in the UAE for May 2021
We share the most noteworthy developments in the UAE’s real estate market, from project launches to new regulations and more!
RERA and Etihad ESCO sign Memorandum of Cooperation
The Etihad Energy Services Company (Etihad ESCO) and RERA (Real Estate Regulatory Agency) recently signed a Memorandum of Cooperation (MoC), which aims to achieve several mutual goals. The MoC was signed by DEWA Executive Vice President of Business Development and Excellence, Waleed Salman and CEO of RERA, His Excellency Eng Marwan bin Ghalita.
The MoC featured cooperation in various tasks. Examples include reducing service charges for unitholders in freehold properties and making billing for cooling services more transparent in customer service. The MoC also included the following goals:
- Timely payments for cooling services
- The installation, maintenance and reading of energy metres via ESCO and making payments to DEWA
- Exploring options in introducing energy-efficient solutions in buildings for the reduction of energy costs
Waleed Salman said, “We look forward to this partnership with RERA to achieve the specified results and goals. In accordance with the MoC, Etihad ESCPO is committed to conducting a feasibility study, coordinating field visits, establishing and proposing an invoice form and developing a project financing model.”
DLD reports accelerated growth in the Dubai property market since the start of 2021
The Dubai real estate market has experienced an uptick in value and transactions during the first half of 2021, according to the Dubai Land Department (DLD). This has been attributed to the sustained appeal of the property market and strategic leadership, which has increased investor confidence. Other factors like the sector’s flexibility and ability to adapt and thrive during the COVID-19 pandemic have also contributed to the growth.
As per DLD, registered property transactions worth over AED 92 billion were reported from January to April 2021 — an increase of 51% in transactions compared to the same time period in 2020.
The report also revealed that 8,749 new investors entered the market in the above-mentioned period, which was a 54% growth compared to the same timeline in 2020. Furthermore, the report highlighted areas that are popular with investors. When it comes to villas for sale, Hadaeq Sheikh Mohammed Bin Rashid has been the favourite, with Palm Jumeirah, Wadi Al Safa 5, Wadi Al Safa7 and Al Yelayiss 2 following closely.
It is also expected that the emirate’s real estate sector will see an increase in activity with the upcoming and highly anticipated Dubai Expo 2020.
Reportage Properties records 200% growth in sales over four months
In other UAE real estate news, Reportage Properties experienced a 200% increase in property sales during the last four months. The Abu Dhabi-based developer revealed that it has recorded sales worth AED 500M since January 2021 — up from the AED 165M worth of transactions recorded in the previous year during the same time period.
The developer has projects in notable areas of Abu Dhabi, such as Al Raha Beach, Masdar City, Yas Island and Al Maryah Island. Its portfolio also includes four projects in Dubai. There are over 11 projects under development by Reportage Properties with a capacity of over 5,000 housing units.
Among the company’s real estate projects in Abu Dhabi is Al Maryah Vista, which features more than 700 housing units. Reportage Properties projects in Dubai include Alexis Tower on Sheikh Zayed Road and Rukan in Dubailand.
According to real estate news in the UAE, sales transactions reported by Reportage Properties in 2021’s first quarter reached a total value of AED 369M, growing by 180% when compared to Q1 2020.
Seagate Shipyard launches the first moveable floating houses in the UAE
Another highlight from the UAE property sector was the launch of the first units of the floating sea palace resort, Neptune, by the ship manufacturing firm, Seagate Shipyard. The first unit was sold to businessman Balvinder Sahani for AED 20M. The house was launched from Al Hamra Port in Ras Al Khaimah and will be floated till Jumeirah.
Aside from being a moveable floating villa, this unique and eco-friendly house features ultra-luxurious amenities for a plush lifestyle! Spread over two storeys and 900 sq. mt., the floating house has a balcony, kitchen, living room, glass swimming pool, four bedrooms with ensuite bathrooms and two additional rooms for house help and crew.
The units in the Floating Sea Palace are environmentally-friendly with a boat-shaped design and hydraulic engines, which means that it can easily travel over water. Additional perks include a self-sterilisation system, solar-powered operations and smart technologies for the treatment of wastewater.
Dubai-based developer to accept property transactions in Dogecoin
In Dubai real estate news, Samana Developers will accept the Dogecoin cryptocurrency for its upcoming residential project located in Jumeirah Village Circle (JVC). Investors who opt for the cryptocurrency will also be eligible for a 5% discount by the developer.
All transactions with Dogecoin will be made via Binance cryptocurrency exchange, which is based on the Cayman Islands. The introduction of the new payment method aligns with the company’s aim to accommodate new investors.
According to Imran Farooq, CEO of Samana Developers, “I consider the crypto as an opportunity in general and a new mode of settlement in particular. Looking at the growing acceptance of cryptocurrency and its inclusion into the mainstream financial industry, I can now clearly see that the time has come to start using cryptocurrency in businesses, especially in the real estate sector in Dubai. We as a real estate developer must recognise it.”
Aldar Properties launches the third phase of its Noya development
Abu Dhabi-based developer Aldar Properties has successfully launched the third phase of its Noya project, known as Noya Luma, on Yas Island. The new phase will include 189 standalone villas at Noya Luma.
Noya Luma comes after the success of Noya’s first two phases, which were sold out within hours after launch. Similarly, Aldar Properties announced the latest phase of Noya also sold out within four hours of being launched, generating sales up to AED 560M!
All of the villas on Noya Luma will feature large outdoor and indoor spaces. The average size of the plots in the new phase will also be larger than its predecessors. Construction on the developer’s third Noya project is expected to begin in November 2021, with handovers scheduled in February 2024.
According to Chief Commercial Officer at Aldar, “The strong response to the first two phases of the Noya development reflects renewed consumer confidence and confirmation that Abu Dhabi’s real estate market is going from strength to strength. We continue to consult with our customers to ensure that the products we offer meet their needs, allowing us to deliver properties that address gaps in the market. Noya Luma is a prime example of this and it will strongly complement our existing portfolio of high-quality assets on Yas Island, one of the emirate’s premier destinations.”
Frequently Asked Questions
What is the state of the Dubai real estate market?
As observed in the reports released by Dubai Land Department, the Dubai real estate sector performed strongly in the first half of the year, with the value and number of sales transactions growing in 2021.
Bayut and dubizzle’s Q1 sales property market report for 2021 also reveals that investors interest remains strong in Jumeirah Village Circle, Downtown Dubai and Dubai Marina.
According to the latest Dubai property news, the city’s luxury rental market has also experienced growth in 2021. Bayut and dubizzle’s rental market analysis for Q1 2021 reveals that Jumeirah and Dubai Marina have seen rents recover, while neighbourhoods such as Al Nahda and Deira have seen prices become more affordable.
What is the state of the Abu Dhabi real estate market?
Similar to Dubai, the real estate sector in the capital city has also experienced positive trends in 2021. Masdar City, Reem Island, Al Reef and Yas Island have emerged as the preferred choices for investors and homebuyers, according to Bayut and dubizzle’s Abu Dhabi property market analysis for sales in Q1 2021. The report also reveals that homeowners can enjoy rental returns up to 8.18% for properties in Abu Dhabi.
In 2021’s first quarter, Abu Dhabi’s rental market has also experienced steady demand. Tenants have also shown a keen interest in historically popular areas like Al Reem Island and Al Raha Beach, according to Bayut and dubizzle’s rental property report for Q1 2021.
I am not a resident. How do I buy property in Dubai?
Foreign investors can purchase real estate in Dubai without becoming residents, as long as the project is available on a freehold basis. You can search for apartments and villas in freehold areas in Dubai such as DAMAC Hills, Business Bay and Arabian Ranches.
That concludes our review of the real estate news in the UAE for May 2021. Stay tuned to MyBayut for more updates on the country’s real estate sector!
