With a 76.5% increase in value to AED 528B in comparison to 2021, real estate transactions in Dubai continued their exponential development trajectory. A considerable increase in the number of real estate permits and licences the Dubai Land Department awarded in 2022, according to a statement released on Thursday, highlights the rising investor interest in Dubai and the competitiveness of the real estate market.
According to statistics, the DLD granted 9,047 real estate permits and 6,479 real estate licences in 2022, an increase of 46.6% and 53.3% from 2021, respectively. The value of real estate transactions increased by 76.5% to AED 528B from 2021 to 2022, continuing their exponential development trend. “The sector’s exceptional performance supports the goals of the Dubai Economic Agenda D33,” DED said in a statement.
“The high growth in permits and licences reflects the growing demand from real estate investors across the world driven by Dubai’s strong growth outlook and the prospects of high returns in the local market. The growth also reflects the Dubai Land Department’s efforts to provide high-quality services, further enhance the competitiveness of the real estate market and ensure the protection of all stakeholders,” the statement said, according to Zawya.
According to real estate pundits, Dubai’s competitive rental yields of six to ten percent, superior infrastructure and lifestyle, economic growth and stability, regulated market, income tax-free investment, and growing population are key factors behind its increasing appeal as a global investor haven and a preferred destination for high net worth individuals.
“The remarkable performance of the sector supports the goals of the Dubai Economic Agenda D33 launched by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, to double the size of the emirate’s economy by 2033 and consolidate its status as one of the world’s top three cities,” said the DLD.
Online ads received 7,947 DLD permits in 2022, while classified ads (180), outdoor advertisements (164), vehicle advertisements (140), billboards (138), open-day announcements (95), text messages (84), real estate promotion platforms (75), printed advertisements (50), and project launch ceremonies received the next-highest number of permits (38). Additionally, licences were provided for real estate fairs, seminars, advertising, and publications, among other things. On the strength of robust demand from end users and international and local investors, according to Ata Shobeiry, CEO of Zoom Property, the Dubai real estate market is anticipated to maintain development pace.
“Dubai’s position as a leading tourist destination, reformed policies by the government, relaxation in visa rules, and an expat-friendly environment; it’s a combination of all these factors that have helped to make Dubai property market a roaring success. I believe they will continue to contribute to the sector’s success in 2023 as well,” Shobeiry said.
Real estate brokerages that buy and sell real estate received the most DLD licences (2,308), followed by brokerages that lease real estate (1,570), services that monitor transactions (1,273), administrative supervision services for real estate (491), brokerages that buy and sell land and real estate (299), real estate development (161), and commercial complexes (170). (117). In addition to these major categories, licences were also provided for retail centres, mortgage brokers, and jointly held property management services.
“In line with its vision to transform Dubai into the world’s best real estate investment destination, the Dubai Land Department has worked to enhance the local market by providing seamless services, introducing supportive regulations, fostering a digital ecosystem, consolidating various sources of data through partnerships and raising the capabilities of its human resources to maintain the highest levels of service excellence. Driven by close cooperation between public and private stakeholders, the sector is set to achieve greater growth in the future,” the DLD said.
