- August 18, 2023
- Posted by: Waqas Siddiqui
- Category: Real Estate
Dubai Real Estate Market Records AED 217 Billion Sales
According to W Capital, the Dubai real estate market has now entered an unprecedented phase of robust growth. Dubai’s real estate industry is currently witnessing unparalleled levels of property transactions in both quantity and worth. During the first seven months, property sales surpassed AED 217 billion ($60 billion) with the property market emerging stronger than it has ever been.
Dubai’s real estate market maintains its exceptional historical achievements, registering unprecedented figures month after month. This aligns with the growing array of choices and opportunities for investors to participate in Dubai’s property market. Simultaneously, there is an enhancement in transparency across the sector. Fortifying Dubai’s international standing as a prime real estate investment hub.
The consistent increase in sales indicates that the property market in Dubai continues to offer appealing investment prospects. This is alongside a favorable setting for both living and working. Furthermore, the real estate market demonstrated adaptability and the capacity to strengthen investor trust, even during periods of unique economic conditions. Furthermore, the average daily value of real estate transactions rose to AED 1.5 billion ($410 million), compared to AED 1 billion ($270 million) at the beginning of 2023.
Dubai Real Estate Showcases Investor Confidence
Over the past two years, there has been an extraordinary demand for Dubai’s real estate. The property demand is driven by the dynamism of Dubai’s economy. Along with the influx of affluent individuals from around the globe. This recovery has led to a notable increase in the real estate investment returns in Dubai, reaching a rate of 9%.
Factors influencing Dubai’s property market upsurge include end-users buying appetite. This coupled with the influx of prosperous individuals and businesses into the real estate market. These factors have further propelled Dubai’s real estate market acting as a significant source of demand. The exceptional quality of Dubai’s infrastructure across all sectors and continuously upgrading infrastructure to match the pace of Dubai’s economic growth and development. Dubai provides a legal framework upholding the rights of all parties as well as ensuring fairness among UAE nationals and foreigners without bias. In addition, Dubai’s 2040 Urban plan focusing on sustainability and Economic Agenda D33 are likely to ensure growth momentum in the property market.
Dubai Real Estate Sector GDP Growth 2023
In the first quarter of 2023, Dubai GDP recorded 2,8% growth crossing AED 111.3 billion ($30.3 billion). Dubai comfortably outpaced average global GDP growth rates for Q1 2023 in comparison to the USA (1.8%) and EU (1.1%). The real estate sector contributed 7.4% towards Dubai’s economy and 6% towards Q1 2023. The sector grew by 2.4% driven by the growth in property sales in the first quarter of 2023 according to Dubai Land Department figures. The growth of Dubai’s real estate sector is attributed to the investor confidence in the property market encouraging them to consider residing in the country for the long term. The real estate investments are expected to grow further with Dubai’s Strategic Plan 2026.
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