Dubai’s real estate sector marks major milestone, value of transactions crosses Dhs500bn in 2022

view original post
Dubai real estate transactions cross Dhs500bn photo courtesy Dubai Media Office

Dubai’s real estate sector performed exceptionally well in 2022, reflecting the fact that Dubai has emerged as one of the most popular destinations for real estate investors.

Annual real estate transactions worth a record Dhs528bn were recorded, a 76.5 per cent rise from the previous year, according to a Dubai Media Office report.

Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council, said, “Dubai remains one of the world’s most attractive investment destinations due to its stable economy, strong financial fundamentals and ability to constantly find new opportunities for growth.

“Moreover, global investors, institutions and businesses continue to have high confidence in Dubai’s economy due to its growing profile as one of the best metropolises to live and work, its exceptional infrastructure and supportive regulations,” he added.

Increase in real estate transactions reported

A total of 122,658 real estate transactions were registered in the emirate in 2022, an increase of 44.7 per cent from 2021.

The past year also saw 80,216 investors registering 115,183 new real estate investments valued at Dhs264.15bn, an annual growth of 59.5 per cent in volume and 78.4 per cent in value. The number of investors in 2022 grew by 53 per cent compared to 2021.

The real estate sector’s exceptional growth underscores the emirate’s rising profile as the ‘city of the future’ and a major gateway to some of the world’s fastest-growing emerging markets.

The emirate’s economy continues to witness strong growth despite the challenging global economic situation. In the first nine months of 2022, the emirate’s GDP grew 4.6 per cent year-on-year to reach Dhs307.5bbn. The recently launched Dubai Economic Agenda D33 features total economic targets of Dhs32tn over the next 10 years.

Read: Here’s what Dubai’s ambitious D33 agenda aims to achieve

Poised for greater growth

Sultan Butti bin Mejren, director-general of Dubai Land Department, said the emirate’s real estate sector has demonstrated its ability to sustain its rapid growth and enhance its attractiveness as an investment magnet. “Driven by close cooperation between public and private stakeholders, the sector is set to achieve even greater growth in the future.”

Bin Mejren added, “Early in 2023, we announced our Strategic Plan 2026, which charts a roadmap for establishing Dubai as one of the world’s best real estate markets by ensuring effective governance, promoting innovation, harnessing the latest technologies to develop new real estate solutions and creating a data-driven sector that promotes investor confidence.

“The Dubai Land Department has also worked to enhance the real estate investment environment by providing seamless services, introducing supportive regulations, fostering a digital ecosystem, consolidating various sources of data through partnerships and raising the capabilities of our human resources to maintain the highest levels of service excellence. Further, we have maintained a strong focus on implementing global standards and best practices in the local real estate market.”

Read: Dubai’s real estate sector had a remarkable year in 2022, says Avalon Properties’ CEO

Avalon Properties CEO Ahmad Ibrahim said “We’ve been closely watching the fast pace of Dubai’s real estate market performance and growth over the past two years, and especially in 2022. The supply and demand of properties are abundant in the emirate’s market. All the events around have been in sync to increase the momentum of the city’s economy in a promising way. Dubai’s rapid and confident recovery from Covid-19 has also significantly contributed to the economy of the emirate booming longer.”

Also read: Dubai real estate: A positive outlook for 2023