Last week, the real estate market in Dubai observed transactions totaling AED 7.02 billion. There were a total of 2,248 sales transactions, including 441 mortgage transactions for AED 7.89B million, and 94 gift transactions worth 537.70 million from Dec 26, 2022 to Dec 30, 2022 in the world of real estate market Dubai. Moreover, Akaya Oxygen property worth AED 331,000.00 tops the list of sales, consisting of both flats and hotel apartments, followed by Al Barari and Al Furjan.
According to DLD mortgage transaction details, the top 5 transactions consists of: Al Barari flat comprising 8,850 per Sq.Mt value was sold for AED 1,575,000 (total transaction 1), Al Kifaf flat comprising 83,281 per Sq.Mt value was sold for AED 8.549,854 (total transactions 7), Al Waha flat comprising 4,565 per Sq.Mt value was sold for AED 760,000 (total transaction 1), Arjan flat comprising 16,733 per Sq.Mt value was sold for AED 1,114,240 (total transactions 2), and Bluewaters flat comprising 17,841 per Sq.Mt value was sold for AED 1,114,240.
Meanwhile, as of the 26th of December, DLD reported 515 sales transactions totaling 1.44 billion dirhams ($408 million) and 19 gift deals totaling 137.87 million dirhams in the Dubai real estate market. Even in the second last week of December 2022, real estate Dubai remained bustling with $500 million worth of properties. DLD also shows that the total sales revenue was 1.14 billion dirhams, of which 299.29 million were for the sale of 32 land plots and 483 residential units.
Revamped Plan to Elevate Dubai in Global Investment Capital
The Dubai Land Department in the United Arab Emirates has released a new strategy with the goal of making Dubai the top-ranked investment destination in the world.
According to a WAM report, the plan’s principal goal is to provide seamless real estate services in Dubai, in addition to establishing appropriate regulations and providing the necessary human capital for the industry to expand and flourish.
The plan, which will be carried out until 2026, is meant to improve the real estate sector’s contribution to the emirate’s GDP, which would in turn allow Dubai to become one of the most developed economies in the world.
According to the WAM research, the strategy rests on five fundamental pillars that are crucial to the expansion of Dubai’s real estate market.
Dubai Recognized as “The Most Transparent Market” in 2022
Due to all the preparations for Expo 2020 Dubai and the 2022 FIFA World Cup in Qatar, the real estate market in the United Arab Emirates (UAE) and Dubai in particular has had a banner year owing to the many events that have taken place since COVID-19.
According to research conducted by property consultant Savills, Dubai also leads the world in the number of branded residences.
In 2023, the World Bank projects that the UAE’s GDP will grow by more than 4%.
Due to the robust performance of the tourism, hospitality, real estate, transportation, and manufacturing industries, the Central Bank of the United Arab Emirates (UAE) has increased its forecast for economic growth in the UAE by the coming year to 7.6 percent. The UAE Central Bank also lowered its prediction for economic growth in the country by 2023 to 3.9%.
Contrarily, international real estate activity was impacted in 2022 by factors like rising interest rates, volatile asset valuations, and worries about housing market corrections but, even at the end of December, there were Dubai property transactions of AED 6.28B for December’s 3rd week.
Will Dubai’s Real Estate Market Maintain Its Growth in 2023?
The year 2022 was another spectacular one for Dubai’s real estate market, with record-breaking sales and new luxury-market spikes. However, while brokers in Dubai have been throwing holiday parties in celebration, the rest of the world has been facing a very different reality this December. Historically, rising interest rates have been bad for the real estate market, and they are the primary reason for the current property downturn in the United States and Europe.
In contrast to the West, where rising interest rates have a devastating impact on real estate markets, Dubai is much less vulnerable to such hikes due to the presence of cash purchasers and the benefits of increasing oil prices.