In a dynamic start of the year, Dubai real estate market witnessed a surge of activity, with 1,721 transactions amounting to Dhs 5.8 billion during the week ending January 5, as Dubai Land Department (DLD) reported. The robust performance indicates a promising outlook for the emirate’s real estate sector in 2024.
Transactions Breakdown
The weekly report from DLD highlighted, among the transactions, 114 plots were sold for Dhs 1.36 billion, while 1,183 apartments and villas changed hands for Dhs 3.13 billion.
The top three transfers for apartments and villas showcased the prestige of Dubai’s real estate market, with transactions hitting Dhs 110.01 million in Al Thanyah First, followed by two others at Dhs 62 million and Dhs 56.4 million in Palm Jumeirah.
Furthermore, mortgaged properties amounted to Dhs 779.4 million for the week, with the highest mortgage observed on land in Al Hamriya, totaling Dhs 125 million. Additionally, 98 properties were granted between first-degree relatives, reaching a total value of Dhs 617 million.
UAE Real Estate Landscape
Dubai’s real estate sector contributes to the United Arab Emirates‘ economic diversification efforts, accounting for 8.2 percent of the emirate’s gross domestic product. The country, aiming to reduce oil and gas revenue dependency, has successfully positioned itself as a global player in the real estate industry.
In 2023, EMAAR, a Dubai-based real estate development company, witnessed a nearly 30 percent increase in brand value, making it one of the top 10 most valuable real estate companies globally. The Abu Dhabi Investment Authority (ADIA) also plays a significant role as a leading global investor with assets exceeding 43.4 billion U.S. dollars.
Real Estate Market Analysis
The UAE residential real estate market is poised for growth, with experts projecting a Compound Annual Growth Rate (CAGR) of over 8% from 2022 to 2027. The market, initially impacted by the COVID-19 pandemic, is now rebounding due to supportive economic reforms, an accelerated vaccination program, and increased demand for larger homes with outdoor amenities.
The UAE government’s initiatives, such as extended residency permits and the 10-year golden visa program, have contributed to improving market sentiment and attracting more investments from expatriates to read more about the golden visa, we kindly refer to our previous article: https://tme-services.com/company-setup/residence-visas-for-property-investors-in-dubai.
How TME Legal Consultants Can Support Your Business
Dubai’s real estate market’s strong start in 2024, coupled with favorable market trends and government initiatives, paints a positive picture of the sector’s continued growth and resilience in the face of global challenges. Investors and stakeholders will likely find ample opportunities in the emirate’s vibrant and evolving real estate landscape.
TME Legal Consultants is a team of 45 professionals in the fields of legal-, tax, accounting- and compliance with over 18 years of experience in the UAE and Middle East region. We advise expanding SMEs on all corporate, tax, and labor law issues. We assist them in establishing a presence in the UAE, provide ongoing tax advice, and advise on all labor law issues. We support your company to flourish in the best possible way by helping you navigate through new regulations concerning your business in the UAE.
