Dubai Land Department reveals real estate market trends in new annual report
The value of real estate transactions in Dubai reached AED106 billion ($28.8 billion) in the first five months of 2019 compared to AED95 billion in 2018, a growth rate of 12 percent, a new report revealed on Tuesday.
Dubai Land Department (DLD), in its annual report, also said that Dubai also witnessed the launch of 48 new real estate projects in the same period compared to 84, comprising 20,000 units, in 2018.
Upon completion, they are expected to add approximately 8,000 new residential units to the real estate sector with a total area exceeding 730,000 square metres.
The new report is part of DLD's mission to improve transparency in the real estate market.
Sultan Butti bin Mejren, director general of DLD, said: “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.”
According to the report, the contribution of the real estate sector to Dubai's gross domestic product (GDP) reached 13.6 percent in 2018 compared to 6.9 percent in 2017 while the construction sector’s contribution reached 6.4 percent in 2018 compared to 6.2 percent in both 2017 and 2016.
The value of the GDP in Dubai reached AED398 billion in 2018 compared to AED390 billion in 2017
The report also revealed that 2018 witnessed around 53,000 transactions worth AED223 billion. The percentage of individual investors decreased from 62.8 percent in 2017 to 59.8 percent in 2018, while the percentage of corporate investors increased from 37.2 percent in 2017 to 40.2 percent in 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 noted.
The Business Bay area ranked first in terms of the number of real estate transactions with over 4,000 transactions. It also maintained the first position in transaction value with over AED11 billion.
Individual investors from the UAE ranked first in terms of the value of the real estate investments, with investments worth over AED10 billion, followed by Indian investors with investments worth over AED8 billion in 2018.