14 May 2023, Arabian Business
The Dubai real estate market will achieve sales of AED300bn ($82bn) this year, according to a leading property boss in the city.
Walid Al Zarooni, W Capital CEO, said Dubai real estate sector sales could hit the record-breaking AED300bn figure in 2023, based on the available figures so far.
Al Zarooni said that Dubai real estate sector sales exceeded AED120bn since the beginning of 2023, and that value, which is the largest ever during the same period, is distributed over more than 41,000 sales deals, according the Dubai Land Department data.
Dubai real estate
Walid Al Zarooni said: “Real estate market data indicate the ever-lasting momentum, and the possibility of breaking last year’s records, boosted by the turnout of the global wealthy”.
Al Zarooni stated that total real estate sales in Dubai during 2022 grew by 78.3 per cent to AED265.6bn ($72bn), which was the highest annual value ever in the history of the real estate market in the emirate, distributed over more than 97,000 deals.
He explained that there are huge deals on an almost daily basis, with values of more than AED1m, with few exceeding AED1bn.
Many new projects are being sold off-plan within 24 hours or a maximum of two weeks.
Al Zarooni indicated that some major investors started to buy entire floors and then resell them in retail, which is an important trend within the market that boosted the investment momentum and introduced new players that help market recovery.
The CEO stated that real estate transactions exceed AED1bn per day, in a strong indication of the strong momentum and the exceptional performance that began since late 2021, as well as this a strong evidence of the sectors growing investment attractiveness.
Walid Al Zarooni stressed that Dubai provides the ideal environment for living, working and investing at the same time.
That is proved by the fruitful bets investors make on real estate investments in Dubai, with profits exceeding 100 per cent in some cases since 2020 when the pandemic started until now.
The CEO said the procedures followed in Dubai, in terms of developing investments, facilitating doing businesses and residence visas, pushed forward the investing activities.
This is proved in the strong real estate momentum, in terms of demand, that will continue for a longer period.
These factors will enhance the chances of higher prices; thus, additional gains for real estate investors.
Al Zarooni believed that real estate sales expectations during this year depend on many different factors, such as estimates of the local or global economy.
“The real estate sector in Dubai is also affected by many variable factors, such as government policies, demographic changes, fluctuations in oil prices, and expectations of strong demand,” he said.
Al Zarooni pointed out that Dubai is showing continuous economic growth, urban development, and an social activity expansion, so it is likely that the demand for real estate will continue to be robust in the long term, which means good opportunities for investors, despite the expected fluctuations in the global market.