It achieved record sales during 8 months from 2022, with a value exceeding 156 billion dirhams
Dubai real estate .. an urban renaissance and the ability to adapt to crises
The real estate sector has emerged as one of the important tributaries of Dubai's economy.
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Sectors that built Dubai's economy
The Emirate of Dubai has achieved widespread global fame, making it a global destination for the economy, attracting capital and entrepreneurs from different countries, and becoming a springboard for many billion companies thanks to its advanced infrastructure and flexible legislative environment.
Several sectors have contributed to the growth of the emirate's economy and achieved leaps and bounds in all fields over the past years. Perhaps the most prominent of these sectors are: aviation, tourism, retail, technology, real estate and financial services.
The aviation sector continued to support the growth of Dubai's economy with high rates of passenger flow and linking the emirate to the outside world. Dubai International Airport is an essential tributary to the emirate's economy, and a major enabling factor in the growth of the country's trade volume in general, and Dubai in particular, with various global markets.
The tourism sector has contributed to the diversification of the emirate's economy, as Dubai has huge tourism potentials and a developed infrastructure that has made it a favorite destination to visit throughout the year.
The retail trade sector is one of the activities that support the growth and diversification of Dubai's economy, as it has contributed to keeping pace with the economic development movement in the emirate.
The real estate sector has also recorded remarkable growth levels during the last period, as Dubai has become a magnet for investors from all over the world.
Dubai real estate witnessed a significant improvement in its investment attractiveness with the high return on investment from leasing it thanks to the stimulating measures.
Dubai has succeeded in building a competitive and sustainable economy, relying on several major sectors, and the real estate sector has emerged as one of the important tributaries of the emirate's economy.
The Dubai government's plans for the real estate sector provided all measures and initiatives, which contributed to the sector achieving record levels in terms of local and foreign investments and real estate sales, which put Dubai at the forefront regionally and globally.
Dubai has also strengthened its position as a center for the residence of the world's rich, and this was evident through the volume of large deals that took place during the first half of this year, and over the past years, especially on the Palm Island and a number of other places in Dubai.
With Dubai aware of the role played by the foreign investor in real estate, the emirate has provided the necessary facilities to embrace more than 200 nationalities from around the world, and there is a new industry represented by the real estate development industry, which has enriched and enriched the emirate with architectural icons.
typical experience
Since the beginning of the third millennium, Dubai has provided an exemplary experience in the unprecedented urban renaissance, with the successive development of thousands of projects, new cities, tourist islands, residential complexes, high-rise towers and skyscrapers, as it became the focus of the world's attention and the dream of many who flock to it for work and residence.
During the years 2020 and 2021, despite the repercussions of the Corona pandemic, investors with insightful strategic vision - of different nationalities - maintained their optimism about the situation of the real estate market in Dubai, and based their vision on the strength of the real estate market supported by smart policies provided by the rational leadership, which ensures the stability and recovery of the market situation repercussions of the pandemic.
Indeed, the expectations of investors succeeded, as the real estate sector withstood the crisis, and soon returned to its recovery and exceeded pre-Corona levels.
Statistics from the Dubai Land Department show that the real estate sector in Dubai has recorded record levels in terms of sales and transactions during more than 12 years, as real estate sales in Dubai amounted to 1.32 trillion dirhams, distributed over 572,000 deals from 2010 until mid-June 2022.
The value of real estate sales exceeded 150 billion dirhams in 2021, breaking a 12-year record, and the total number of sales transactions during the same year is the highest since 2013.
record sales
With the advent of 2022, the real estate sector in the Emirate of Dubai headed towards recording new record sales during the first eight months of 2022, with a value of about 156 billion dirhams, through more than 58 thousand transactions, making it the largest sales value ever during that period. This means that 2022 will be a record year in terms of real estate sales, according to a monitoring conducted by the "W Capital" real estate brokerage, based on the latest data issued by the Dubai Land Department.
This is the first time that the value of real estate sold in Dubai for the period from January 1 to August 31 of each year exceeds 150 billion dirhams, and the last time it exceeded the 100 billion dirhams barrier in 2009 when real estate sales recorded a value of about 110 billion dirhams.
The month of August of 2022 also witnessed the highest total value of real estate sales deals in the Emirate of Dubai, with a value of nearly 21 billion dirhams to date, distributed over about 8,400 deals, which is the highest value ever for the month of August, followed by monthly sales of 14.8 billion dirhams last year.
In turn, real estate professionals said that the strength of Dubai real estate emerged during the Corona pandemic to be the best destinations for global investors looking for a healthy and investment safe haven, as it emerged through the strength of real estate developers, and the attraction of many nationalities to trade real estate within Dubai, expecting that the real estate sector in Dubai will continue to register Historic levels in 2022 and in the coming years.
They pointed out that the real estate sector is one of the main sectors on which Dubai's economy is based, and the main driver of the city's economy, as it contributes more than 8 to 10% of the emirate's GDP.
Top destinations
Walid Al Zarooni, a real estate expert, Chairman of the Board of Directors of the "W Capital" real estate brokerage company, said that "the strength of Dubai real estate emerged during the Corona pandemic to be the best destinations for global investors looking for a safe haven, both healthy and investment."
He added that "the real estate sector in Dubai will continue to record its historical levels in 2022, and in the coming years, after it showed during the first eight months of this year, as well as during the past year, exceptional performance supported by results and numbers," noting that "the real estate market in Dubai continues to smash Its record numbers period after period and month after month recorded a new level in terms of sales, in a strong indication of the continuation of the momentum and exceptional performance that started since late last year, and a strong evidence of the increasing investment attractiveness enjoyed by the real estate sector in the emirate. ”
Al-Zarouni pointed out that "the credit for this strong performance of the real estate market in recent months is due to foreign investors in light of the increasing demand, high real estate prices, and a significant increase in the return on investment, which encouraged the influx of foreign investors to buy, thanks to stimulating measures, unlimited support and initiatives." The quality recently launched by the emirate’s government, represented in the policies to support residents, new residency laws, and the residence of entrepreneurs and investors, in addition to the infrastructure that made the Emirate of Dubai take the lead in the field of real estate at the global level, which contributed to enhancing Dubai’s position at the forefront of global destinations as the best A place to live, work and invest.
mainstay
For his part, the real estate consultant, Ahmed Al-Dawla, said, "One of the main reasons that made the real estate sector a mainstay of Dubai's economy is the strength of real estate developers, attracting many nationalities to trade in real estate within Dubai, and the presence of many facilities from the government in the event of construction, completion and development, along with the infrastructure The legislative framework, the most prominent of which was during the last ten years, is controlling the real estate market with the escrow account, which is a pillar to ensure investment in the real estate sector.”
The state added, "The large number of transactions on real estate in terms of resale and purchase, gave a strong impetus to the Dubai economy," noting that "the mega schemes in the real estate sector in Dubai contribute to an increase in investors' demand to buy in large projects such as Palm Island, which recorded numbers Record sales of the most expensive units and villas in the world,” explaining that major foreign companies have opened their headquarters in Dubai, which contributed to an increase in demand for the emirate’s real estate.
He pointed out that "the large number of conferences and events in Dubai, during the last ten years, especially Expo 2020 Dubai, contributed to increasing real estate investment opportunities, as those coming to these exhibitions watch the construction boom in the emirate, which opens its doors to all nationalities, in addition to a factor Security and safety,” stressing that the real estate sector continues to grow, and there will be no recession, and will continue to be stable during the coming period.
prime mover
In turn, the Chairman of the Board of Directors of Al-Waleed Investment Company, Muhammad Al-Mutawa, said that "the real estate sector is one of the main sectors on which Dubai's economy is based, and the main driver of the city's economy," explaining that Dubai has developed over the years and the population has increased, and the government's interest in the sector has increased. Tourism, which led to an increase in the growth of the real estate sector, especially in recent years, after the establishment of many joint-stock companies such as “Emaar” and “Nakheel”, which increased the momentum of the real estate sector.
Al-Mutawa explained that "Dubai needs many initiatives to enhance the real estate sector, including creative and aesthetic initiatives that are represented in real estate at a beautiful level, and we hope for huge real estate projects such as Burj Khalifa," noting that "the market is currently satisfied with villas and traditional real estate," calling The government provides facilities for investors to obtain approvals in (complex real estate) projects, and there will be facilities for projects of an aesthetic nature and added value to the real estate face of Dubai.
vital role
In the same context, the managing director of Harbor Real Estate Company, Muhannad Al-Wadiya, said that "the real estate sector in Dubai plays a large and vital role in Dubai's economy, and contributes by more than 8 to 10% of the emirate's GDP," explaining that "the real estate sector is an engine of Head of Economy in Dubai.
Al-Wadiya added, “Among the initiatives that support the continuation of the real estate sector in performing its role as an engine of the wheel of growth is freehold ownership, which has contributed to attracting investors from all over the world, and attracting foreign capital, in addition to the lifestyle that contributed to stability and increased lengths of residence.” Dubai is a city that provides a distinctive and attractive lifestyle, has excellent infrastructure, and has real estate of all kinds, residential and commercial, in addition to its ability to attract large companies and supermarkets, as well as its ability to attract institutional real estate portfolios, such as (RET funds), Which does not enter any country with its investments unless the real estate sector has a maturity, infrastructure and a legal environment that provides them with protection.”
Al-Wadiya explained that “all economic sectors recover if the real estate sector is booming,” adding: “The real estate is fine, the economy is fine,” noting that “among the initiatives that contributed to the continuation of the real estate sector in performing its role as an engine for the wheel of economic growth, is the reduction of the investment ceiling to obtain On the golden residency for a period of five years, from five million dirhams to two million dirhams, as well as 750,000 dirhams for obtaining a residence permit for three years.
core sector
Abdul Karim Al Mulla, CEO of Standard Real Estate Management Company, said that "real estate is one of the main sectors that support the economy, and this sector is characterized by several things, most notably infrastructure, laws, legislation, banking facilities, and security stability."
Al-Mulla added, "Many citizens in the country depend on real estate in many of their projects, as well as the investments of some residents and foreigners."
He revealed that the state-led initiatives enhance the contribution to the growth of the real estate sector, and help in attracting inflows of funds from abroad.
growing demand
Saeed Abdul Karim Al Fahim, CEO of Stratum Owners Association Management, said that “Dubai and the UAE provide the necessary support and facilities to the tourism and real estate sectors, as part of a plan to diversify the economy.
The real estate sector witnessed great development and momentum during the last period with the support of (Expo 2020 Dubai), and there is an increasing demand and distinguished offers from companies for investors and payment facilities, which contributed to the increase in demand for the real estate sector after the Corona pandemic.
Al-Fahim added, "There are support sectors that are recovering due to the growth and recovery of the real estate sector, including cleaning, guarding, maintenance and building materials, where there are from 15 to 20 sectors related to the real estate sector."
Quality of developers
The real estate broker, Muhammad Al Ali, said that “the real estate sector in the UAE and Dubai is distinguished by the quality of real estate developers, as they have a bank escrow account, which facilitates purchases and increases investor confidence,” explaining that this privilege does not exist in many countries around the world.
Ali added that the procedures of the UAE and Dubai government during the Corona pandemic have enhanced confidence in Dubai's economy and living in the emirate, in addition to facilitating purchases, indicating the possibility of buying and registering a property on the same day.
He called for continuing to keep pace with the development in the sector in terms of ease of buying and selling, and maximizing the role of electronic services in the sector.
investment asset
The CEO of "Courtyard" Real Estate Development Company, Saleh Tabakh, said, "The real estate market is one of the most important sectors contributing to Dubai's economy.
Real estate is an investment that stays inside the country and contributes to the flow of funds from abroad,” he added, adding that the real estate market in the emirate has proven its legislative maturity in addition to quality and diversity as well.
Tabakh continued: "Dubai is a global city and has become the second home for many nationalities or even a favorite holiday destination, so the state has given the real estate sector great importance besides the investor, alike."
He considered it important to work on increasing the attraction of investments from outside the country, in order to contribute to maintaining the continuous growth in the market.
Distinguished sector
The real estate consultant, Mohammed Al-Hafiti, said that "the real estate sector's excellence is a reflection of the excellence of the Emirate of Dubai, and the wise leadership has succeeded in enhancing the sector's role as a mainstay in economic development."
He continued, "The sector continues to play a vital and very important role by continuing various initiatives in introducing quality and innovative projects, integrating these initiatives and linking them with other services, such as golden residency programs and retirement programs."
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