Dubai’s Real Estate Sale in 2019 has Already Crossed $28.8 Billion!admin
Within the first five months of 2019, the value of real estate transactions in Dubai shot past the AED95 billion benchmark set in 2018, with a staggering AED106 billion ($28.8 billion), showing a growth rate of 12%. The Dubai Land Department’s (DLD) annual report also said that 48 new real estate projects were launched at the time, compared to the 84 (approximately 20,000 units) in 2018. The expectation is that these new projects add approximately 8000 new residential units, with their total area exceeding 730,000 square metres.
This report is part of DLD’s effort to improve transparency within the real estate market. As the director general of the DLD, Sultan Butti bin Mejren, says, “Though the real estate sector reflects the development achieved by the emirate across all fields, it does not come without its challenges.
“On the one hand, we have to continue this momentum, which has been achieved through promotional initiatives at the local and global levels through our exhibitions in prominent Arab and international capitals. On the other hand, we should ensure transparent communication and openness to all investors and other parties in this sector.”
The report indicates that the real estate sector’s contribution to Dubai’s GDP reached 13.6% in 2018 (compared to 2017’s 6.9%) while the contribution of the construction sector increased from 2016 and 2017’s 6.2% to 6.4% in 2018. The overall GDP in Dubai increased from AED390 billion in 2017 to AED398 billion in 2018.
With a grand total of 53,000 transactions worth AED223 billion, the DLD noticed a decline in individual investors from 62.8% (2017) to 59.8% (2018). Meanwhile, corporate investors increased from 37.2% (2017) to 40.2% (2018).
“This increase reflects the ability of the real estate sector to provide investment options that attract corporate investors and effectively contribute in providing huge real estate investments in the real estate sector,” the report says.
Having over 4000 real estate transactions places the Business Bay area first, with a transaction value of over AED11 billion. UAE’s individual investors also ranked first with their value of real estate investments being worth more than AED10 billion. Following the UAE’s investors were Indian investors, whose investments are valued over AED8 billion in 2018.
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