Dubai’s Real Estate Sector Hits New Peaks with Record Transactions in 2023

In an extraordinary display of market strength, Dubai’s real estate sector witnessed a surge in transactions, reaching an all-time high of 1.6 million across various segments in 2023, marking a nearly 17% increase from the previous year. This growth highlights the sector’s significant momentum and the robust economic environment, as the Dubai Land Department reports.

The comprehensive tally encompasses a mix of investments, mortgage dealings, sales, and rental agreements over the past year, showcasing a notable rise from the 1.3 million transactions documented in 2022, as per a Dubai Media Office announcement.

The cumulative worth of these transactions amounted to a staggering AED 634 billion ($172.6 billion), with the transaction count climbing to 166,400, reflecting year-on-year escalations of 20% in deal value and 36% in transaction volume.

Highlighting the booming investment landscape, the real estate investment sector alone saw a 55% increase, reaching nearly AED 412 billion from around 157,798 transactions by 113,655 investors, 71,002 of whom were new entrants. Notably, foreign investors represented 42% of these new investors, illustrating the market’s widening appeal.

Marwan bin Ghalita, the DLD’s acting director-general, pointed to these results as evidence of Dubai’s economic resilience and adaptability, crucial for achieving the ambitious Dubai Economic Agenda D33 targets. This agenda aims to double the city’s economy by 2033, positioning Dubai among the top three global cities.

The real estate market’s recovery from the pandemic’s impacts has been bolstered by strategic government initiatives, including new residency permits for retirees and remote workers and the extension of the 10-year golden visa scheme.

A report from ValuStrat, a property consultancy, showed that robust demand drove the residential sector’s most significant quarterly price increase in a decade during the third quarter.

Supporting the market’s expansion is Dubai’s growing population, which welcomed over 100,240 new residents in 2023, pushing the total to 3.65 million, according to the Dubai Statistics Centre.

The year also saw a remarkable rise in female investors, with 38,059 women contributing AED 90.5 billion across 46,725 investments. Gulf investors also made a significant impact, with nearly 7,449 individuals engaging in 10,441 deals worth AED 30.75 billion.

Reflecting on the broader economic landscape, Dubai reported a 3.3% GDP growth in the initial nine months of 2023, continuing the positive trend observed in the first half, where the GDP grew by 3.2% to AED 223.8 billion. This data underscores the enduring vitality of Dubai’s economy and its real estate market’s pivotal role in sustaining this growth trajectory.

Original article reference: The National News.

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