Today's Edition
MAYS IBRAHIM (ABU DHABI)
The UAE real estate market is projected to reach a staggering value of $0.71 trillion by 2024, according to insights from Statista, an online platform specialised in data gathering. It revealed that residential real estate is expected to hold a market volume of $0.41 trillion in the same year, dominating this flourishing market.
Its projections further indicate a steady annual growth rate of 3.03% between 2024 and 2028, paving the way for an even more impressive market volume of $0.80 trillion by the latter year. These projections underscore the robustness and resilience of the UAE’s real estate sector, positioning it as a key player in the global arena.
A notable factor fuelling the surge in the UAE’s real estate market is the growing demand for luxury properties with an increasing number of high-net-worth individuals seeking investment opportunities, according to Statista.
Official figures released by concerned local authorities in the UAE reveal a remarkable boom across various metrics, signalling robust growth and heightened activity within the market.
Abu Dhabi Sees Record-breaking Year
In Abu Dhabi, the real estate market is experiencing a remarkable uptick. The Abu Dhabi Real Estate Centre (ADREC), an affiliate of the Department of Municipalities and Transport (DMT), has reported a record-breaking year in 2023, as the UAE capital saw Dh87.1 billion in real estate transactions.
According to ADREC, 2023 saw a substantial 73.7% increase in transactions compared to the previous year, with the value of buying and selling activities soaring by 159.5% and ultimately reaching Dh61 billion. Overall, buying, selling, and mortgage activities witnessed a notable 12.2% increase compared to 2022.
Abu Dhabi’s real estate sector also saw a significant influx of investors, with 9,448 newly registered investors and 1,098 non-resident investors, marking increases of 71% and 175%, respectively, compared to 2022.
Dubai Real Estate Deals, at an All-time High
The Dubai Land Department achieved an all-time high in 2023, with 1.6 million transactions across various real estate activities, representing a remarkable growth of 16.9% compared to 2022. The value of real estate transactions in Dubai exceeded Dh634 billion, with over 166,400 transactions recorded-a growth of 20% in value and 36% in the number of transactions compared to the previous year.
Additionally, real estate investments experienced a 55% growth during the same period, reaching an impressive total value equal to approximately Dh412 billion. This surge translated into 157,798 transactions attributed to 113,655 owners, inclusive of 71,002 new investors, marking a 20% increase. Moreover, the proportion of non-resident investors surged, constituting 42% of the total new investors.
In 2023, the Sharjah Real Estate Registration Department reported a 13.1% increase in transaction volume, surging to a substantial Dh27.1 billion-the highest recorded since 2017. Notably, the diversity of investing nationalities expanded to encompass 103, marking a remarkable 21.2% growth compared to the previous year. Non-Arab foreign investors saw a remarkable 165% increase in trading volume and a substantial 131.7% rise in the number of properties traded. Additionally, mortgage transactions reached a notable value of Dh7.5 billion, further emphasising the buoyancy of the Sharjah real estate market.
