Real Estate Transactions In Dubai Increased By 61%, Surpasses AED240bn

The real estate sector in Dubai has witnessed an encouraging leap recording a sixty-one percent increase compared to 2021. The total value crossed AED 240 billion in 2022 and this has been caused by a welcoming economy that encourages people to work and settle in Dubai. People are also buying villas and townhouses which is leading to an increase in real estate investments.

Real Estate Transactions In Dubai Show Better Improvement Compared To Last Year

There are multiple options available for investors and according to experts, the increase in demand will lead to a supply shortage in the coming years. The Dubai Land Department (DLD) has started a new initiative, a strategic plan to boost the real estate sector performance.

This has been created to align with the national development vision to create an economy that has consistent performance in the current and future development strategies.

According to the new DLD strategy, the real estate investments will have a seamless service that compliments a more hassle-free legislation mechanism, incorporates a digital infrastructure system, and encourages partnerships through integrated data systems, and utilization of efficient human resources. 

The 2022 real estate transactions recorded high-value property transactions that helped the recovery of the UAE from the Post-Covid phase. So in order to maintain this streak, the real estate sector via DLD should improve upon its services to provide a more modern approach that can promote further investments in the coming years.

The strategic decision to expand the non-oil economy through tourism, tech, and foreign investments has been encouraging for the UAE economy as it was one of the few nations that were not embroiled in the Covid-19 economic crisis rather the UAE economy made an inspiring comeback ranking high in the charts of almost all developmental parameters.

Consumer behavior took a shift in 2022 paving way for more investments in houses and residential plots that was evident towards the latter half of 2022. Some of the main city areas like Jumeirah village circle, Downtown Dubai, Jumeirah beach residences, Jumeirah Lakes towers, etc.

were in demand for their apartment complexes whereas places like Palm Jumeirah, Dubai Hills Estate, Arabian Ranches, DAMAC Hills, The Springs, etc. pulled in people for their more expensive Villas and townhouse areas.

According to an international property consultant, Dubai has been ranked as the global leader for branded residences and as per JLL’s Global Real Estate Transparency Index, Dubai is the only real estate market in the Middle East and North African (MENA) region to be included in the ‘most transparent markets’ category.                     

Zoom property Insights estimates that property prices in Dubai will increase by a margin of almost twenty percent in 2023 with the luxury residence segment dominating the margin by almost 13.5 percent.

The growth in the property sector has increased so much that Dubai is estimated to see the highest initial growth rate this year moving ahead of Paris and Miami.

Multiple economic and social pressures like the threat of war, economic uncertainty, tax increase, etc. are forcing people to migrate to UAE as the nation is trying to expand its economy by attracting talent from all over the world. 

Together with Dubai, Abu Dhabi is also showing growth in its real estate sector with transaction values reaching around Dh 21.04 billion in the second half of 2022. In order to meet the increasing demand for properties in Dubai, a project sales and marketing service company Devmark Group has started virtual platform-based services.

Through this service, people who are interested in buying properties in Dubai but are from far away nations can sit at their own homes and view the properties in Dubai in real-time.

Devmark also offers services from real estate brokers who can contact customers via online services and interact using video calling.

They also provide services to the developers by providing them statistical data on the sales, the different types of properties preferred by customers, average square feet rate, most popular properties, etc.

This inside information helps the developers to make further improvements in their projects and sales. Sean MaCauley, CEO of The Devmark Group observed that the metaverse-based real estate services will take a couple more years to be in full swing.

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However, companies like UAE’s DAMAC, a high-profile real estate developer have started to expand to the metaverse and it will take some time for the customers to get used to the technological know-how of this medium.              

The growth of the UAE has been calculated at 10.2 percent of the total wealth of the MENA region and it is projected to reach around $1 trillion of the total MEA’s financial wealth by the year 2026.

The overall growth in the UAE and Dubai economy has been due to various factors like the new Visa policies introduced by the UAE administration that eases up work and settlement options in the Emirates.

This has also directly affected the real estate market as more and more people from the International community are choosing Dubai as a sweet spot for establishing their careers and life. The expats who are already working here are finding it easier to own homes and this has also led to a boom in the housing sector.