Annual Report: Real Estate Sector Performance 2021

Global economic performance in 2020‭ ‬witnessed a notable decline as a natural result of the downturn in all economic activities 2020‭ ‬caused by the spread of the COVID-19‭ ‬pandemic and its consequences on the economic performance worldwide‭.‬

Despite the expansion in the global supply of COVID-19‭ ‬vaccines‭, ‬the new Coronavirus mutations have led to new epicenters for the global COVID-19‭ ‬pandemic and the emergence of different mutations‭, ‬which the world is currently dealing with‭. ‬The statistics indicate a sharp increase in the number of COVID-19‭ ‬cases in India from March till May 2021‭, ‬becoming the first country in the world to have the highest number of COVID-19‭ ‬new cases‭.‬

In the past years‭, ‬Dubai has achieved unprecedented rates of growth‭, ‬reaching 4.5%‭ ‬in 2014‭. ‬The drop in oil prices and the decline in foreign trade in the subsequent years have caused a decrease in economic growth rates‭, ‬reaching below the rates achieved in 2014‭. ‬However‭, ‬Dubai has achieved favorable growth rates‭, ‬and 2019‭ ‬has witnessed 2.7%‭ ‬growth in GDP compared to 2.1%‭ ‬in 2018‭. ‬It was expected that 2020‭ ‬would see additional growth exceeding the growth rates achieved in 2019‭ ‬given the improvement witnessed by the Emirate of Dubai in all economic performance indicators‭, ‬in addition to the opening date of Expo 2020‭ ‬Dubai‭, ‬which has‭ ‬been postponed due to the outbreak of COVID-19‭. ‬Dubai has provided six economic stimulus packages to help the companies and individuals overcome the economic and social consequences of the pandemic‭, ‬which is worth more than AED 7.1‭ ‬billion‭.‬

These economic stimulus packages notably affected the performance of all economic sectors in Dubai in the last quarter of 2020‭ ‬and during the first months of 2021‭.‬

In the past years‭, ‬the real estate sector has contributed to promoting comprehensive economic development in Dubai‭. ‬It has effectively participated in the generation of Dubai's national income through the sector’s contribution to the growth of GDP‭, ‬which exceeded 14%‭ ‬in some years‭. ‬In the first half of 2020‭, ‬the real estate sector’s contribution to Dubai’s GDP reached 8.2%‭, ‬compared to 7.4%‭ ‬in 2019‭. ‬Despite the increase in the real estate sector’s contribution to GDP‭, ‬the drop in GDP growth was accompanied by a 3.5%‭ ‬drop in the growth rate of the real estate sector‭.‬

In 2020‭, ‬Dubai's real estate sector registered 50,909‭ ‬real estate transactions despite the exceptional circumstances faced by the global economy and affected most countries‭. ‬Despite the slight decrease in the number of real estate transactions in 2020‭ ‬compared to 2019‭, ‬the real estate sector's overall performance has presented exceptional performance indicators that underscore the‭ ‬strength and robustness of the real estate sector in Dubai‭, ‬particularly in the last months of 2020‭.‬

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Annual Report: Real Estate Sector Performance 2021 01 November, 2021 / 26 MB / PDF
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