Real estate transactions in Dubai increased by 80% to Dh157 billion.

Real estate transactions in Dubai increased by 80% to Dh157 billion.

In the first quarter of this year, non-residential investors made up 45% of all investors, an increase of 25%.

In the first quarter of 2023, Dubai real estate transactions increased by 80% to Dh157 billion from Dh87 billion in the corresponding period in the previous year as the emirate’s real estate experienced its record run that began last year and has continued unabatedly this year as well.

During the comparable time, the number of transactions increased by 49%, from 26,066 to 38,715, and the sales value increased by 62.0% to Dh89 billion.

Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, the Deputy Ruler of Dubai, Deputy Prime Minister, and Minister of Finance, stated on Twitter: “The sector is witnessing record growth since the beginning of last year, which reflects the trust in Dubai’s economy and its future, and follows the footprints of Dubai’s D33 economic agenda.”

Residents and foreign investors continued to pour billions of dirhams into the emirate’s real estate sector in order to profit from higher capital as well as rentals returns, while paying lower rates than other major cities. This was motivated by the ease of doing business, successful management of the pandemic, and growing confidence in the local economy.

On the strength of the emirate’s stable and pro-business policies, which would make it one of the best-performing markets in terms of capital appreciation, real estate developers and analysts are confident about the year’s growth estimate.

As the emirate experiences strong wealth growth and draws more billionaires, global real estate firm Knight Frank forecasts a 14% increase in home prices this year, the most globally for the second consecutive year.

According to Knight Frank, real estate costs in Dubai are still far lower than those in comparable cities like Monaco, Hong Kong, New York, Singapore, London, Geneva, Los Angeles, Paris, Tokyo, and more. As a result, investors will receive better returns from the local real estate market than from the aforementioned markets, which are already trading at considerably higher levels.

Dubai has worked hard to address a perceived area of weakness, notably length of stay, and has created a very pragmatic approach to luring wealthy inhabitants. Longer-term stay is now a possibility thanks to the Golden Visa scheme, according to Knight Frank. Previously, visa possibilities were primarily short-term and connected to employment.

The expanding economy of Dubai and the favourable benefits after Expo 2020, according to Imran Farooq, group CEO of Samana Developers, are driving factors behind the property market expansion as more and more people, particularly high-net-worth individuals, are moving to the emirate.

The Samana chief is likewise optimistic for the rest of the year and believes that the current trend will continue.

“The main aspect is the golden visa, which enables long-term residency and a sense of belonging here. Tax-free personal income tax is once more a very alluring feature, he added.

The Samana chief is likewise optimistic for the rest of the year and believes that the current trend will continue.

Samana is releasing 12 projects this year alone, and all the developers are doing incredibly well.

Increased Foreign Investment

The first quarter of 2023 saw a continued influx of new real estate investors into the emirate; their numbers grew 13% to 13,338 from 11,944 the previous year.

Non-residential investors made up 45% of the market in the first quarter this year compared to 36% in the same period last year, an increase of 25%.

These numbers support the Henley Global Citizens 2022 report’s prediction that 4,000 millionaires would move to the United Arab Emirates, primarily Dubai, in 2022, increasing demand for luxury homes in the emirate.

Imran Farooq concurred with the official statistics, noting that the percentage of foreign investors in Samana’s projects increased from 50% to over 75%, primarily from European nations.

Since the interbank rate in the Eurozone is still very low and individuals are moving their money from the European market to Dubai, he added, “All the markets are performing very well but the interest from the European market is higher this time.”

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