Dubai real estate… record sales and long-term investment returns

The real estate market in Dubai in 2024 witnessed remarkable developments that were reflected in various aspects of the sector, starting with rising prices, recording record sales exceeding half a trillion dirhams for the first time, all the way to new government initiatives that establish a more prosperous future for the sector, at a time when real estate developers strengthened their investments by developing more… Of the new projects, some of which exceeded billions of dirhams in value, which contributed to Dubai maintaining its advanced position among international cities in the real estate sector.

The decision to adopt the Real Estate Sector Strategy 2033 came as one of the most prominent events in the real estate market in 2024, as the strategy seeks to achieve key performance indicators, the most important of which is doubling the added value of the sector in the emirate’s gross domestic product to reach 73 billion dirhams, and increasing the percentage of owners of residential units by 33% through encouragement On ownership, in addition to increasing the growth volume of real estate transactions in Dubai by 70% to reach one trillion dirhams, and doubling the value of real estate portfolios in Dubai 20 times to reach 20 billion dirhams.

2024 also witnessed the launch of the Dubai Land Department, as part of Dubai Social Agenda 33, the Dubai Real Estate Broker Programme, with the aim of enabling young nationals to benefit from economic opportunities in the real estate sector, and enhancing their role in the growth and leadership of this sector. The program aims to raise the percentage of national brokers from 5 to 15% over the next three years.

In the same context, Dubai Lands launched the Reese Real Estate Innovation Initiative, in support of the Dubai Economic Agenda (D33) and its ambitious goals to make Dubai a major center for incubating innovations. The initiative was designed to support and attract companies specialized in the field of real estate technology from Dubai, in addition to highlighting the most prominent technological solutions in the field of real estate in Dubai that are compatible with the local market, as well as global markets.

Dubai witnessed the launch of about 370 new real estate projects in 2024, amid great demand from foreign and local investors, and a desire from developers to enhance their market shares and offer real estate products that meet the aspirations of different categories of investors, whether those looking for homes to live in, or properties for rent, and to achieve returns. Long term investment.

According to Dubai Land Department statistics, the total cost of these construction projects exceeded 80 billion dirhams, and included about 110,000 residential, hotel and commercial units.

In August 2024, the Dubai Land Department concluded an agreement with seven real estate developers in Dubai, with the aim of granting them the authority to use the department’s registration systems and employ them to manage and register all real estate transactions of the developer and investor, which contributes to reducing the time of completed transactions and simplifying procedures.

The agreement included the companies “Emaar”, “Damac”, “Binghatti”, “Aldar”, “Sobha”, “Azizi” and “Danube”, as these companies will work to use the special registration systems developed by the department to provide services with high efficiency and quality. For Dubai Land customers.

In the second half of 2024, the international real estate services company, Savills, issued the results of its latest index of luxury residential cities in the world, which revealed that Dubai topped the rankings out of 30 global cities in terms of rental value growth, while it ranked fifth in terms of capital value growth in… First half of 2024.

Dubai topped the index with gains of 12.1%, followed by Bangkok (9%) and Lisbon (7.5%). The results of the index revealed that these markets have very strong specifications for lifestyles, with another element represented by the relocation of companies that increases demand in these cities.

For its part, rents for luxury real estate in Dubai have witnessed a noticeable increase over several years, as a group of factors, including government policies supportive of the business environment and attractive residency visa programs, have led to an influx of investors from all over the world to buy real estate and live in this city.

Dubai maintained its position, according to the company’s latest report, as the highest global market in terms of the number of home sales worth more than $10 million, and New York and Hong Kong came in second and third places, respectively.