Dubai’s annual realty transactions top Dhs500b for first time in 2022
- Last updated: January 16, 2023 | 19:32
Picture used for illustration purpose. File
Inayat-ur-Rahman, Business Editor
Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council, said, “The exceptional performance of the real estate sector reflects the vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, to make Dubai one of the world’s top three cities. The results also support the goal of the Dubai Economic Agenda D33 launched by His Highness to double the size of Dubai’s economy by 2033. The sector is a key pillar of Dubai’s strategy for sustainable development and a vital driver of its 2040 Urban Master Plan.”
“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.
A total of 122,658 real estate transactions were registered in the emirate in 2022, an increase of 44.7 percent from 2021. The past year also saw 80,216 investors registering 115,183 new real estate investments valued at Dhs264.15 billion, an annual growth of 59.5 percent in volume and 78.4 per cent in value. The number of investors in 2022 grew 53 per cent compared to 2021.
The real estate sector’s remarkable growth signifies Dubai’s rising stature as the ‘city of the future’ and a major gateway to tap vast opportunities in some of the world’s fastest-growing emerging markets. In addition, Dubai’s state-of-the-art logistics services, business-friendly environment, ability to attract talent and foster innovation, high levels of ease of doing business and exceptional safety and stability have made it a pivotal global trade and investment hub.
The Dubai 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 percent year-on-year to reach Dhs307.5 billion. The recently launched Dubai Economic Agenda D33 features total economic targets of Dhs32 trillion over the next 10 years.
Sultan Butti Bin Mejren, Director-General of Dubai Land Department, said, “Guided by the vision of Vice President and Prime Minister of the UAE and Ruler of Dubai His Highness Sheikh Mohammed bin Rashid Al Maktoum, 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 investment 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.”
Meanwhile, with more than 10,300 real estate transactions valuing Dhs17.6 billion at an average price of Dhs1.2 million, Business Bay led the chart for the highest sales in Dubai in 2022 and the prime area is expected to continue its supremacy in 2023 as well, according to the Zoom Property Insights.
Other communities that are expected to perform well in the new year are Dubai Marina, JVC, and Downtown Dubai. They recorded 7,430, 6,085, and 5,100 transactions worth Dhs24.3 billion, Dhs5.6 billion, and Dhs16.8 billion, respectively, in the preceding year, according to the Zoom Property Insights. This brings the year-end total of 2022 to 97.4k transactions worth Dhs265.7 billion.
Ata Shobeiry, CEO of Zoom Property, lauds the property market’s remarkable performance in 2022. He said 2022 proved to be a record-breaking year for Dubai real estate in many ways.
“Not only was the market able to surpass the 2014 peak levels, but it also achieved new milestones as the years progressed. The same performance is expected from 2023 as well since foreign investors and HNWIs continue to get attracted by the Dubai property market and venture into it,” he said.
Around 67,700 apartments were sold in 2022 with an average price of 1.2 million, according to the Zoom Property Insights. It marked a change of 71.1 per cent in terms of the number of transactions and 20.9 per cent in terms of average price compared to 2021.