10 April 2023, Globe Echo
Real estate company managers confirmed that the record performance recorded by the real estate sector during the first quarter is a continuation of the great momentum that was achieved during the previous years, and they expressed in statements to Al-Bayan their confidence that the real estate market in Dubai will continue the path of rapid growth during the current year, with record sales Historic once again, a rise in the capital values of real estate and the growth of the return on real estate investment, in conjunction with the consolidation of its investment attractiveness in the long term, prompted by the ambitious goals of the Dubai Economic Agenda D33, which constitutes a comprehensive catalyst for growth in all sectors, and adds broader dimensions to the momentum of the real estate sector in the long term.
The real estate sector in Dubai, after recording a historic performance in terms of sales during the past year, which amounted to 264.15 billion dirhams, continued to achieve record sales during the first quarter of this year, amounting to 88.7 billion dirhams, a growth of 60% compared to the same period last year. , according to data from the Land Department.
Ali Sajwani, Managing Director of Damac Properties, stressed that the exceptional growth witnessed by the real estate sector in Dubai embodies the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, may God protect him, and the ambitious strategic goals set by His Highness within the agenda. Dubai Economic City (D33), foremost of which is doubling the size of Dubai’s economy and making it among the three largest economic cities in the world.
He added: «This growth that Dubai is achieving in various sectors, not just the real estate sector, highlights the extent of the global investor’s confidence in Dubai’s economy, especially in light of the crises the world is experiencing today, and we expect that the demand for real estate in Dubai will continue to rise, especially in the two sectors. Luxury and ultra-luxury real estate, as a result of the increased demand for this particular category of high-net-worth individuals, the high demand compared to the available supply, and the failure to launch new projects commensurate with the huge demand in the market.
Sajwani explained that Dubai today is competing with major global cities such as London, Miami, Tokyo, Los Angeles, and others, and is ranked fourth among the most active markets in the luxury residential sector after New York, Los Angeles and London, with 219 homes sold at a value exceeding $10 million in 2022, despite From the high prices in Dubai, they are still below the global average.
For example, an amount of one million dollars allows its owner to buy 105 square meters of luxury housing in Dubai, while the same amount allows its owner to buy only 34 square meters of the same category of housing in London, and 33 square meters in New York, which enhances Dubai’s attractiveness to attract More wealthy.
Sajwani pointed out that the real estate sector in Dubai during the first quarter of this year maintained its momentum, continuing to grow to record levels. to 60% over the next few years, due to the high demand for it.
In addition, there is a great demand by local and international investors for branded real estate, which is now driving the demand for luxury and ultra-luxury real estate in Dubai, as the latest report issued by Knight Frank real estate consultancy showed that 61% of apartment sales are off-plan in Dubai. Over the past year, it has been associated with branded residential real estate, and high-net-worth investors tend to buy real estate with the aim of living and settling in Dubai, and not investing as it was before.
The Managing Director of Damac Properties explained the multiplicity and integration of factors that contribute to the recovery of the real estate sector in Dubai, foremost of which is the vision of the wise leadership that provides the best investment climate for all investors of different nationalities and countries, especially those related to granting long-term residence visas, as well as constantly amending laws. In line with the market dynamics, which are factors that encourage all investors to come to Dubai and invest and live in it.
For his part, PNC Menon, founder and chairman of the Sobha Group, expected that the real estate market in Dubai will witness a significant expansion during 2023, the features of which have clearly emerged since the beginning of the year, as the growth momentum that began last year continues, and the sector continues to grow with flexibility and stability. This growth was evident during the first quarter of this year, in line with the increasing demand for residential real estate and the general tendency towards ownership.
He pointed out that the new visa laws, in addition to the pioneering infrastructure that Dubai enjoys and its investment-friendly policies, contribute to enhancing the influx of high-net-worth individuals this year, especially in light of the strategies of the Dubai Economic Agenda (D33).
He added: «Dubai witnesses an increase in the number of foreign investors every year. Given that it is one of the best cities to live and work in, and the strength of its economy and supportive policies to attract talents, investors and entrepreneurs, in addition to the high levels of real estate investment returns in it, and this is accompanied by the continuous growth in demand for the residential real estate market in Dubai, which achieved its highest rates of transactions during the months. the first three of this year.
Menon stressed that the launch of new visa laws and policies supporting investment in the country contributed to attracting an increasing number of millionaires and high-net-worth individuals, and Dubai, with its distinguished real estate portfolio, attracts entrepreneurs and foreign investors, who contribute significantly to supporting the growth of the real estate sector in the emirate. .
The growing real estate market during the past years was one of the main factors that contributed to advancing economic development, as investors flocked to the sector; Because of its luxury real estate and tax-free.
Foreign buyers and investors have always set their sights on Dubai’s real estate market. Because it provides an attractive and profitable environment, the market is expected to continue its growth path with flexibility and stability this year, and to attract more investors. Due to its continuous development and widening growth horizons. We look confident to continue this growth in the coming months in light of continued investor interest and customer demand.
In turn, Nabil Al-Kindi, Executive Director of Dubai South Real Estate Company, explained that the Dubai real estate sector achieved a record performance during the first quarter of this year, praising the Dubai government’s keenness to launch many infrastructure projects during the past years, in addition to the development and development of services commensurate with With a global city that attracts investors from all over the world, he stressed that all these factors played a huge positive role, and contributed to achieving a quantum leap. He added, “We are absolutely certain that the Dubai government will continue to unveil related projects, to keep pace with the massive expansion of urban projects that are being implemented in new areas within the city.”
While Farhad Azizi, CEO of Azizi Developments, confirmed that the exceptional performance and record growth witnessed by the Dubai real estate market is reflected in the emirate’s position as a global destination among the best in the world for living, working and visiting, stressing that the coming years will witness more prosperity thanks to the visions and directives of the wise leadership. , which seeks to attract more investments and investors from around the world, indicating that the government’s proactive and effective handling of the Corona epidemic, in addition to the new visa policies, has contributed to creating more demand for real estate in the emirate, and the influx of wealthy investors to benefit from this supportive environment.
On the other hand, Azizi pointed out that Dubai is also today a prominent destination for hedge fund traders, thanks to its ease of doing business and flexible tax policies, in addition to the fact that the emirate is one of the safest cities, and a global center for tourism, business and innovation, which is reflected Undoubtedly, the real estate sector is booming.
He expected the emirate to witness a rise in real estate prices during the next stage, and therefore real estate investors flock to Dubai to secure some of the highest returns in the world on their investments, and therefore we expect values to maintain their upward trajectory, as long-term tenants shift from renting to owning, and securing their place in this coveted market.
A Decent Position
Swapnil Pillay, Director of the Middle East Research Department at Savills, a real estate consultancy, expected that the sector would continue to grow during the current year with more price increases, but at a stable pace. He explained that the exceptional performance of the real estate market in Dubai is driven by several factors. Most notably, the entry of more businesses that attract more talents and people with expertise to reside in Dubai, and policies such as long-term visas for individual real estate investors from different countries.
While Ayman Youssef, Vice President of Coldwell Banker, pointed out that Dubai has gained a prominent position in the business world; This enhanced its attraction to many individuals and companies, thanks to the possibility of full ownership of the foreign investor in a range of sectors, in addition to the options of flexible and multiple visas for a period of up to ten years.
In addition, the favorable economic conditions and stability in Dubai have cemented its position as a preferred destination, and the strong rental market has made real estate in Dubai one of the best performing properties in the world, with gross yields reaching 8%.