Dubai Land Department has announced that real estate transactions in the emirate during the first five months of 2019, about AED 106 billion, compared to
With a growth rate of 12%, AED 95 billion in 2018 put the Real Estate Registration Index in seventh place globally in the focus of ease and reliability of real estate registration.
The first five months of 2019 saw the launch of 48 new real estate projects, which, when completed, will add 8,000 new housing units to the real estate sector, Dubai Land said in its annual report released yesterday.
The report showed that the value of real estate transactions in 2018 amounted to 223 billion dirhams, through 53 thousand real estate actions. The value of real estate investments in the same year recorded 80 billion dirhams, and the number of real estate investments exceeded 41 thousand real estate investments, by more than 31 thousand real estate investors from different countries of the world.
Real estate sector performance
In detail, the Dubai Land Department presented the Annual Report: Performance of the Real Estate Sector 2019, stressing that the report comes within the framework of its keenness to establish transparency in the real estate market and to establish permanent bridges of communication with all parties concerned.
According to the report, the value of real estate transactions in 2018 amounted to 223 billion dirhams, while the number of real estate transactions amounted to approximately 53 thousand real estate actions.
The value of real estate investments in the same year amounted to 80 billion dirhams, and the number of real estate investments exceeded 41 thousand real estate investments, made by more than 31 thousand real estate investors from different countries of the world.
The results of real estate investments indicate a growing growth in the number of corporate investors, compared to individual investments.
The percentage of retail customers decreased from 62.8% in 2017 to 59.8% in 2018, while the percentage of corporate customers increased from 37.2% in 2017 to 40.2% in 2018.This increase in the percentage of corporate dealers reflects the ability of the real estate sector On providing investment options, they represent an attraction for corporate investors.
Reference for researchers
“We continue to support the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and to adhere to his directives to establish Dubai as the global capital of the economy through coordination,” said Sultan Butti Bin Mejren, Director General of Dubai Land Department. With all developers in the public and private sectors ».
He added: «We wanted this report to be a reference in which researchers find all the information reinforced by means of explanatory, indicating the status of our economy, and the renewed momentum of the promise of further progress and success, and to the ultimate goal of making Dubai ahead of all Big cities in the world.
“The real estate sector reflects the renaissance that the emirate is making in all fields, which poses a kind of challenge to us. We have to continue this momentum, which we have clearly achieved through promotional initiatives at the local and global levels,” he said. Our exhibitions to the most prominent Arab and international capitals, as well as transparent communication, and full openness to investors and stakeholders related to the sector ».
Competitiveness and transparency
According to the report, the real estate sector in Dubai has made progress in the global competitiveness indices, the UAE in the Ease of Doing Business has achieved outstanding performance, and advanced 10 places in the ranking in 190 countries, and reached 11th in the world. This improvement in the ranking of the country represented in the Emirate of Dubai as the largest business city, due to the improvement of a number of axes, led by the axis of ownership registration for the real estate sector, which has progressed in three centers, and reached the seventh place in the world in 2019, compared to the 10th in 2018.
In the value of the Global Transparency Index from 2014 to 2018, Dubai ranked 40th in 2018, compared to 49th in 2014 and 48th in 2016. This improvement comes as a result of a number of initiatives implemented to serve the real estate sector, including a rating project. Buildings.
Contribution to GDP
According to the report, Dubai's GDP reached AED 398 billion in 2018, compared to AED 390 billion in 2017.Dubai's GDP growth rate was 1.9% in 2018, thanks to the government's launch of a package of initiatives that will drive The process of growth and increasing economic activity in the Emirate.
The real estate sector contributed effectively to the growth of GDP, and the improvement in the economic growth rates in the emirate was accompanied by the recovery of the real estate sector performance.
The contribution of the real estate sector to Dubai's GDP in 2018 was 13.6%, compared to 6.9% in 2017, while its contribution in 2016 reached 6.8%. The contribution of the construction sector to GDP reached 6.4% in 2018, compared to 6.2% in 2017 and the same percentage in the previous year.
Optimistic expectations
The report looked at the real estate sector performance forecasts in 2019, pointing out that indicators of improvement in the performance of the real estate sector appeared during the first five months of 2019.
During the first five months of 2019, real estate transactions in the emirate amounted to AED 106 billion, compared to AED 95 billion in 2018, a growth rate of approximately 12%. In light of these data, the Real Estate Registration Index ranked seventh globally in the axis of ease and reliability of real estate registration.
In terms of projects, the first five months of 2019 witnessed the launch of 48 new real estate projects, which are expected to represent a new addition to the real estate sector, and varied between apartments, villas and villa complexes. Upon completion, these projects are expected to add 8,000 new housing units to the real estate sector with a total area of over 730,000 square meters. The number of housing units in the new projects reached 7537 housing units with a total area exceeding 668 thousand square meters.
102 “Under construction” project in freehold areas
The number of projects under implementation in the freehold areas reached 102 in 2018. 130,000 new units are expected to be added.
The number of completed housing units added to the real estate sector in the freehold areas alone was 7469 housing units (other than villas and villa complexes).
According to the data, sales accounted for 63% of total real estate transactions in 2018, exceeding AED 74 billion.
11 billion dirhams the value of actions «Business Bay»
Business Bay topped Dubai's number of real estate transactions in 2018, registering 4,000 real estate transactions. The region also maintained the top position in terms of real estate transactions, exceeding AED 11 billion.
66% new investors
New investors accounted for 66% of the total number of investors in 2018, while active investors accounted for 34%.
In terms of value of investments, new investors account for 57% of the total value of investments in 2018, while active investors represent 43% of the total value of investments.
146 completed and new projects
The number of projects completed last year was 62 projects, while buildings accounted for the largest percentage of these projects, accounting for 74% of the total projects completed in 2018, while the share of villas projects was 15%, and villa complex projects 11%.
The number of new projects that began last year reached 84 projects, ranging from units, villas, buildings and land. The units accounted for the largest proportion of new properties, with more than 20,000 units.
The emirate's rental market has improved
The report emphasized that the growth in the population and the growth in the number of workers in the Emirate of Dubai was reflected in the number of leased units and the number of leases in the Emirate of Dubai.
The number of new leases last year reached 246,509 contracts, while the number of renewed leases reached 251,409 contracts.
From 2013 to 2016, new leases were decreasing against an increase in renewed leases, and from 2017 to 2018 both the number of new and renewed leases increased, but the rate of increase in the number of new leases was greater than that of renovated ones. Reflecting the additional demand for residential and non-residential units in the Emirate of Dubai, in light of the price correction in rent prices witnessed in the Emirate of Dubai.
10 billion dirhams of national investments
Retail investors from the UAE came first in terms of real estate investments in 2018, with investments worth over AED 10 billion.
Investors from India came second with more than AED 8 billion.
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Dubai real estate transactions to grow by 12%
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One thousand real estate investors pump 80 billion dirhams in 41 thousand investments during 2018.