More than 150,843 real estate sale transactions have been recorded in Dubai since the beginning of the current year, totaling over AED435 billion. These include nearly 121,000 residential units, 14,000 buildings, and more than 15,000 plots, according to data from the Dubai Land Department’s website.
Ismail Al Hammadi, founder and CEO of Biznet Consulting, which specializes in real estate project management and development in Dubai, said that real estate sales in Dubai over the first 10 months of the current year have risen by approximately 8,4 percent compared to the total sales value of AED401 billion in 2023.
Major factors
Al Hammadi noted that Dubai’s real estate sector has experienced substantial activity this year, with high demand from international investors.
According to the Dubai Land Department, the sector attracted 50,000 new investors in the first half of the year alone. Furthermore, a large number of new real estate projects have been launched, with over 86,000 new residential units already in the pipeline and an additional 30,000 units expected by year-end. More than 400 new real estate developers have entered the market, with over 250 projects currently under planning.
Al Hammadi attributed this growth to factors such as the stability of the UAE’s local economy, its political stability, the strength of its tourism sector, the rising population, and government incentives encouraging investment in various economic sectors. Additionally, the long-term residency visa system has boosted demand for property in Dubai.
Increase in price and demand
He also highlighted that real estate prices in Dubai have risen this year and are projected to continue to rise next year, given current market conditions and sustained demand.
The average price of residential units increased by 21 percent for apartments and 25 percent for villas, with an overall price increase of up to 40 percent since 2020. Rental prices in some areas have surged by as much as 60 percent, with an average rental yield between 6 percent and 10 percent, positioning Dubai among the global markets with the highest rental yields, compared to around 3 percent in European cities like London and Paris.
Al Hammadi further pointed out that 2024 saw an increase in demand for off-plan properties, with sales of such properties growing by 58.7 percent in volume during the third quarter, reaching a record quarterly high of 31,800 sales. The ready property market also saw a 13.3 percent annual increase, with 18,639 sales, accounting for 37 percent of total sales in Q3.
Read| DET x Amazon Accelerator to help unlock SMEs’ growth potential: Ronaldo Mouchawar
Sector to continue to thrive
The real estate sector in Dubai remains attractive, particularly with the launch of the Dubai 2033 Real Estate Strategy, which aims to position the city as the world’s top investment destination and create a sustainable real estate sector.
The strategy includes goals such as doubling the sector’s contribution to Dubai’s GDP to AED73 billion, raising the homeownership rate to 33 percent for Dubai residents, increasing the volume of real estate transactions by 70 percent to reach AED1 trillion, and multiplying the value of real estate portfolios by 20 times to AED20 billion.
Over 30 initiatives and programs have been mobilized to support the strategy’s implementation over the next 10 years. The expansion of Al Maktoum International Airport and the Blue Line extension of the Dubai Metro are also seen as future growth drivers for the sector.
Al Hammadi noted that the number of real estate brokers in Dubai currently exceeds 22,000, compared to 16,000 at the end of 2023. The market has welcomed more than 6,000 new brokers this year, supported by the Dubai Real Estate Broker Program, which is now preparing to train and graduate a new group of young Emirati brokers in its second phase.
He also mentioned an upcoming book he has authored on real estate brokerage, where he aims to share comprehensive insights on this field based on Dubai’s experience and regulations.
Ismail Al Hammadi, founder and CEO, Al Ruwad Real Estate and Biznet Consulting, co-founder, 34 Real Estate Valuation
For more interviews, click here.
