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Real estate transactions in Dubai jumped by 80% to 157 billion AED in the first quarter of 2023, compared with 87 billion AED received from the sale of real estate in the emirate in the same period of 2022. The emirate's real estate market has experienced unprecedented growth, which began last year and will not weaken in 2023.
The number of transactions also increased by 49% from 26,066 to 38,715 over the comparative period, and sales increased by 62% to 89 billion AED.
Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance, said: "This sector has seen record growth since the beginning of last year, reflecting confidence in Dubai's economy and its future, which is fully consistent with Dubai's Economic Development Program D33".
Due to the ease of doing business and growing confidence in the local economy, residents and foreign investors continue to invest billions of dirhams in the emirate's real estate sector to earn capital growth as well as rental income, despite the lower cost of the lease itself compared to other major cities.
Developers and analysts are optimistic about the growth forecasts for the whole year due to the consistent and business-oriented policy of the emirate, which will make it one of the most efficient markets in terms of capital gains.
Global real estate consulting firm Knight Frank predicts a 14% rise in property prices this year, the highest in the world for the second year in a row, as the emirate will see rapid growth in wealth.
Real estate prices in Dubai, according to Knight Frank, are still significantly lower than in such world centers as Monaco, Hong Kong, New York, Singapore, London, Geneva, Los Angeles, Paris, Tokyo and others. Consequently, the local real estate market will bring investors higher returns than the aforementioned markets, which are already trading at a much higher level.
The emirate also saw a steady influx of new real estate investors in the first quarter, as their number increased by 12% to 13,338 in Q1 2023, compared with 11,944 in Q1 2022.
Non-resident investors accounted for 45% of all home buyers in the first quarter of this year compared to 36% in the first quarter of last year, which is 25% more.
