The total value of land and property sale and mortgage jumped 76.5 percent to US$143.86 billion (Dh528 billion) in 2022, from US$81.74 billion (Dh300 billion), in 2021, according to the Dubai Land Department, the emirate’s land and property registry. This is the first time the land and property transactions value crossed the Dh500 billion record and marks a new milestone in the history of the emirates, since the establishment of Dubai Land Department in 1960.
The US$143.86 billion real estate transaction value is higher than the emirates gross domestic products (GDP), and higher than the GDP of 150 countries.
Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council, said, “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.
The number of real estate transactions in Dubai jumped 44.7 percent to 122,700 last year, when compared to 2021.In 2022, around 80,216 investors registered 115,183 new real estate investments valued at Dh264.15 billion, registering a growth of 59.5 percent growth in volume and 78.4 percent growth in value.
Sultan Butti Bin Mejren, Director-General of Dubai Land Department said, “Guided by the Vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Dubai’s real estate sector has demonstrated its ability to sustain its rapid growth and enhanced its attractiveness driven by close cooperation between public and private stakeholders.”
Experts attribute this to a number of factors, including the remarkable post-Covid recovery, hosting of World Expo 2020 – that encouraged global investors to relocate to Dubai as well as invest in property. The Russia-Ukraine war that transferred a lot of resources to Dubai and pushed the prices of off-plan property price, is another factor that contributed to the growth. The price of a studio apartment which was sold at Dh400,000 in January 2022, is now sold at Dh800,000 to Dh1 million. This reflects the level of interest among international investors.
“[The year] 2022 has been a year of sustained growth for the UAE’s real estate sector as it continued to gather pace while benefiting from the country’s reliable economic policies, excellent infrastructure, safe haven status, and innate ability to adapt to new trends,” Faraz Ahmed, Associate, Research at Jones Lang LaSalle MENA, said in a recent statement.
“Even segments like retail that faced headwinds initially in the year, recovered significantly in the last quarter. Looking ahead, we can expect the UAE to continue to attract the attention of both regional and international investors with aspirational offerings within the sector.”
In addition, the delivery of 38,000 residential units last year pushed Dubai’s total supply to 680,000 units whilst. In 2023, the level of scheduled completions will be a little higher, or 41,000 units in Dubai, according to data supplied by Jones Lang LaSalle.
Dubai Land Department issued a total of 9,047 real estate permits and 6,479 real estate licences in 2022, a growth of 46.6 percent and 53 percent respectively compared to 2021, according to a government statement.
“The high growth in permits and licences reflects the growing demand from real estate investors across the world driven by Dubai’s strong growth outlook and the prospects of high returns in the local market. The growth also reflects the Dubai Land Department’s efforts to provide high-quality services, further enhance the competitiveness of the real estate market and ensure the protection of all stakeholders,” the statement said.
“The remarkable performance of the sector supports the goals of the Dubai Economic Agenda D33 launched by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to double the size of the emirate’s economy by 2033 and consolidate its status as one of the world’s top three cities.”
The highest number of DLD permits in 2022 were issued for online ads with 7,947 permits, followed by classified ads (180), outdoor advertisements (164), vehicle advertisements (140), billboards (138), open-day announcements (95), text messages (84), real estate promotion platforms (75), printed advertisements (50), and project launch ceremonies (38). Permits were also issued for real estate seminars, promotional campaigns, real estate exhibitions, advertisements and newspapers, among others.
The highest number of DLD licences were issued to brokerages buying and selling real estate (2,308), followed by real estate leasing brokerages (1,570), transaction follow-up services (1,273), administrative supervision services for real estate (491), buying and selling land and real estate (299), real estate development (161), and commercial complexes (117). Other key categories in which licences were issued included jointly-owned property management services, mortgage brokers and shopping centres, among others.
In line with its vision to transform Dubai into the world’s best real estate investment destination, the Dubai Land Department has worked to enhance the local market by providing seamless services, introducing supportive regulations, fostering a digital ecosystem, consolidating various sources of data through partnerships and raising the capabilities of its human resources to maintain the highest levels of service excellence. Driven by close cooperation between public and private stakeholders, the sector is set to achieve greater growth in the future.
Also published on Medium.
