Today's Edition
YOUSEF AL ARABI (ABU DHABI)
Real estate sales in the UAE increased by 30% to 40% during the summer season of 2023 compared to the summer months of last year, industry experts and officials told Aletihad. Experts agree that UAE's real estate market experienced a hot summer filled with deals and transactions as a result of the industry's recovery and an increase in returns on real estate investments, in addition to the adoption of electronic sales and transactions solutions. The value of real estate sales in Dubai from June through September amounted to about Dh128 billion, a growth rate of nearly 39% compared to the same period last year, which saw sales of approximately Dh92.2 billion.
The Emirate of Sharjah recorded real estate transactions worth Dh1.9 billion during July 2023, with a total of 2,783 transactions, including 684 sales transactions, spanning 96 areas across the emirate and a total area of over 6 million square feet. Sharjah's real estate sector recorded a trade volume of Dh2 billion in August 2023 through 3,264 transactions, covering an area of 5.1 million square feet. In the Emirate of Ajman, real estate deals grew by 61.5% in August compared to the same period in 2022, bringing the total value to Dh1.5 billion. The Department of Land and Real Estate Regulation in Ajman recorded 1,055 real estate disposals in September with a total value of Dh1.6 billion, a 60% increase compared to the same period in 2022.
Noticeable Recovery
Ismail Al Hammadi, the founder and CEO of Al Ruwad Real Estate, which specialises in real estate consultancy and marketing, said that the UAE's status as a major tourist and commercial hub, as well as its political stability in the face of current geopolitical and economic conditions, has helped attracting more investors and end-buyers to its real estate industry this year.
Al Hammadi noted that the UAE's economic diversity in general, and Dubai's in particular, as well as the government's facilitation of business, has created a vibrant investment environment across all economic sectors, which has also boosted real estate activity. He pointed out that real estate prices in the UAE, compared to other global markets, are reasonable for international investors, especially given their value, quality of construction and designs, and strategic locations.
Al Hammadi said that expects the real estate momentum to continue during the last quarter of the year, based on current market indicators and data along with increased confidence in real estate investments as a safe haven for financial portfolios in light of the current global conditions.
Increasing Sales
Mohanad Alwadiya, the Managing Director of Harbor Real Estate, said that the real estate market in the country experienced unprecedented momentum during the summer season, with sales increasing by more than 30% during the summer of 2023 compared to the summer of 2022.
He attributed the industry upswing to the country's political stability, economic recovery, and the implementation of long-term residency systems, in addition to the availability and diversity of suitable real estate products.
The UAE's real estate industry, and Dubai's in particular, have witnessed exceptional demand over the past two years due to the influx of individuals from around the world. Alwadiya said that the proactive and innovative measures taken by the state have formed the greatest support for the real estate sector, noting that the industry's most distinctive feature at present is the market's reliance on the end-user of the real estate unit.
Alwadiya said that he expects the industry's recovery to continue in the coming years, in light of indicators of continued economic growth and the influx of wealthy individuals and talents.
Ongoing Activity
Mohammed Turki, the Real Estate Manager at Al Waleed Real Estate Group, said that the UAE's real estate market experienced significant momentum during the summer, with trading figures continuing to rise from June to September.
In the past, real estate activity used to slow down significantly with the end of the school year at the beginning of summer, to pick up again in early October. However, the demand for real estate has been very active during this summer and summer of 2022 compared to previous years, he said.
There has been an increase in sales volume of between 30% and 40% during the current summer season compared to the corresponding period last year, indicating that the market is no longer governed by clear quarterly periods of rise and fall, and that trading activity in the first and second quarters is now equivalent to that in the third and fourth quarters, Turki said.
He attributed the growth to new residency regulations and the facilitation of governmental procedures regarding the real estate registration process and related entities, such as the Dubai Land Department. He noted the simplifying the purchasing process has also contributed to normalising activity during the summer season.
