Last Month in Real Estate: January 2021
- Bayut and Dubizzle Release Real Estate Reports
- Rents to Remain Unchanged in New Law
- Launch of Rawdat Al Qurt Project in Sharjah
- Launch of More Expo 2020 Pavilions
- Launch of Shaista in Al Furjan
- ADEC Framework Approval
- Dubai Welcomes 12 Skyscrapers
As we bid farewell to January 2021, it’s time to see how the UAE real estate sector has fared during the first month of the New Year. Dubai’s property market seems to have come back stronger than ever before despite restrictions implemented to curb the Coronavirus pandemic. Furthermore, a recently launched development is also making waves in the Sharjah property market. Keep reading for all the top UAE property news for January 2021.
Latest UAE Real Estate News for January 2021
January was a happening month for property investors, sellers, tenants and agents. Here is a recap of the top news reports for the first month of the year:
Bayut and Dubizzle release real estate reports for 2020
The beginning of 2021 saw Bayut & dubizzle launch their annual market reports on the real estate market in Dubai, Sharjah, Abu Dhabi and Ajman for 2020. In contrast to 2019, the annual reports on Dubai and UAE capital were divided into two parts: property sales in the two emirates and the other for rental trends, with prices further divided into affordable and luxury properties.
As per the 2020 Bayut & dubizzle sales report for Abu Dhabi, property prices have declined in most of the region. On the other hand, lease prices for apartments and villas in the capital city show stability in some regions and have dipped in others as per the 2020 Bayut & dubizzle rental report for Abu Dhabi.
An analysis of the property market trends in Dubai indicates investor interest in developed areas like Jumeirah Village Circle (JVC), Palm Jumeirah and Dubai Marina. A major reason is an overall decline in prices of villas and flats in Dubai, as reported by Bayut & dubizzle annual sales report for 2020. Similarly, we also saw an ebb, stability and increase in annual leases for the mentioned properties, according to the Bayut & dubizzle yearly rental report for Dubai 2020.
Property rent will remain unchanged under upcoming law
The Director-General of the Dubai Land Department, (DLD), Sultan Butti Bin Mejren, has heralded the announcement of a new rental law in Dubai, indicating that all provisions under the new law are ready. Soon to be issued, the upcoming regulation also affirms that rent terms will be fixed for three years. According to the DLD Director-General, “The new law stipulates that the real estate property owners may not increase the rent for residential properties before three years have lapsed since the date of signing the contract between them (property owners) and tenants.”
He further adds that the law is ready and will be implemented after consent on certain items by the DLD Rental Disputes Center. This also includes addressing various loopholes in the previous law.
Once implemented, the new addition is expected to equalise tenants and landlords’ rights to a fair degree. Furthermore, the three-year fixed rent will also encourage occupancy and property investments in the emirate.
Launch of Rawdat Al Qurt project from Asas Real Estate Development
Asas Real Estate Development, the property arm of the Sharjah Islamic Bank, has launched the sale of the Rawdat Al Qurt project. This multi-use residential and commercial development is the first integrated scheme on the new Khorfakkan road in Sharjah and is strategically located near the Al Suyoh residential area, close to the emirate of Dubai.
According to the company representatives, the sale of properties in the “Al Qurt Kindergarten” project is open to GCC Nationals, Arabs and citizens in the UAE. Prices start at AED 50 per square metre with direct financing in cooperation with the Sharjah Islamic Bank as an added incentive.
More Expo 2020 pavilions to open soon
Emirates Building Systems (EBS), a subsidiary owned by Dubai Investments, is in the process of completing four Expo 2020 pavilions. With an estimated cost at AED 23M, this includes the Russia, Indonesia, Uzbekistan and Kuwait pavilions.
Over 18,500 sq.m. of pavilion space is being created by EBS, which is also considered a leading manufacturer of steel products in the Middle East. This includes the Russia and Kuwait pavilions, which cover 6,500 sq. mt each.
According to the General Manager of EBS, Joseph Chidiac, providing a solid framework to the international pavilions is crucial. Additionally, a lot of planning has also gone into the designs to enhance the overall look of the structures.
Shaista project in Al Furjan by Azizi Developments nearing completion
Renowned developer Azizi Developments has announced that its Shaista project, a well connected residential project in Dubai, is 97% complete. Located in Al Furjan, the building is expected to reach completion during the first quarter of 2021.
The Shaista project features over 284 apartments spread across 12 residential floors and over 7,100 sq. ft. of retail space. An additional highlight is its proximity to major areas like the Dubai Expo 2020 site, Dubai Marina, JBR and the Al Maktoum International Airport.
According to the Executive Director of the Engineering Division of Azizi Developments, Mohamed Ragheb, the project is ideal for prospective tenants looking to elevate their home lifestyle. He further adds that potential investors also have a lot to gain by making property investments in Al Furjan, owing to the area’s growing ROI.
ADEC approves framework between Aldar Properties and Abu Dhabi Government
The Abu Dhabi Executive Council (ADEC) has authorised a framework between Aldar Properties and the Abu Dhabi Government to develop capital projects. Following the approval, Aldar Properties will be taking over management of AED 30 billion worth of projects. These include developments in the Al Dhafra and Al Ain regions, Riyadh City and Baniyas North. The projects are expected to deliver up to 25,000 homes for UAE Nationals over the course of five years.
The approval follows a proposal made by ADEC to establish a public-private partnership (PPP) to develop the projects.
As part of the deal, Aldar Properties will also be managing projects by the Abu Dhabi General Services Company (Musanada). The projects, worth over AED 10 billion, are in the education, infrastructure, healthcare, facilities management and social services sectors.
According to the developer, the projects will have a significant impact on the Abu Dhabi economy. Reinforcing this prediction is Aldar’s “In-Country Value” or ICV programme, which ensures that most property development contracts are given to local consultants, contractors, suppliers and SMEs (small to medium-sized enterprises).
Dubai’s skyline is now 12 skyscrapers stronger
Some exciting UAE property news for January 2021 was the announcement that the city of Dubai has completed construction on 12 skyscrapers, topping its total in 2019 by three — an impressive feat which shows how resilient the city’s real estate market is against the impact of the COVID-19 pandemic.
The tallest of the projects is SLS Dubai at 336m, followed by Amna Tower at 307m. Measuring 200m and taller, Dubai’s list of completed mega-developments include Jumeirah Gate, SLS Dubai, Amna Tower, Sofitel Dubai The Obelisk, Harbour Views Tower 1 and 2, as well as Palm Tower.
The achievement was announced as a result of research conducted by the ‘Council on Tall Buildings and Urban Habitat’, which revealed that the city ended construction on 12 buildings in 2020. Experts in the property sector attribute the accomplishment to the emirate’s robust construction sector and interest from local and foreign investors.
That is all we have for you on the UAE property news for January 2021. Investors interested in the country’s prolific real estate market may consider investing in projects by the major developers throughout the country. An example is the upcoming Sun Island Villas by Ajmal Makan development in the highly anticipated Sharjah Waterfront City.
Want to invest in Dubai? Check out how to buy a house in Dubai. Meanwhile, find out which of our Bayut partners have won our Agency of the Month award!
Stay tuned to the Tips section on MyBayut for all the crucial updates on the UAE real estate sector!
