The rental market in Dubai saw a robust performance in the first half of the year….reports Asian Lite News
Dubai witnessed the completion of nine real estate projects worth AED4.06 billion in H1 2023. According to data issued by the Dubai Land Department (DLD), 392 real estate projects are currently being developed in the emirate.
The latest figures further validate Dubai’s status as one of the world’s leading real estate investment destinations and the sector’s ability to sustain its growth over the long term. They also support the leadership strategic vision for economic development and the ambitious goals outlined by the Dubai Economic Agenda D33.
In other figures that demonstrate the continued confidence of local and international investors in Dubai’s real estate market, the first half of the year witnessed the registration of 42,583 real estate units. During this period, 47,187 units worth AED96 billion, and 5,546 villas worth AED15 billion were sold. The number of real estate developers registered in DLD’s database reached 174.
The rental market in Dubai saw a robust performance in the first half of the year. Total lease contracts registered in the first half reached 355,515. Among these contracts, 166,368 were new contracts, while 189,147 were lease renewals. Efficient and proactive services, a well-developed and supportive infrastructure and the market’s inherent sustainability and resilience were key factors that contributed to this performance.
Real estate licences
In the first half of 2023, the Dubai Land Department issued 4,416 real estate licences, reflecting increasing demand for licences for real estate various activities. Real estate licences saw a remarkable growth of 55 percent compared to the first half of 2022. The high growth in licences demonstrates the department’s efforts to bolster the real estate community’s growth by providing proactive and efficient real estate service as well as the sector’s attractiveness to real estate development companies and brokers.
The activity-wise break-up of licences issued in H1 2023 is as follows: Brokerage in the sale and purchase of properties (1,592), brokerage in rental properties (1,008), follow-up services (842), administrative supervision services for jointly owned property management companies (369), purchase and sale of land and properties (240), real estate development (148), private real estate management (56), real estate mortgage brokers (47), and commercial complexes (37). Other activities for which licences were issued included shopping centres and administrative supervision services for jointly owned real estate management companies.
Top areas
In the first half of 2023, Dubai’s real estate sector saw the registration of 76,119 real estate transactions worth AED283 billion. Al Barsha South Fourth topped the list of top 10 areas for the number of transactions with 7,228 transactions, followed by Dubai Marina (6,618), Business Bay (4,792), Wadi Al-Safa 3 (4,140), Burj Khalifa (3,526), Al Thanyah Fifth (3,417), Al Khairan First (3,333), Hadaeq Mohammed bin Rashid (3,207), El Merkadh (3,091), and Al Hebiah Fifth (2,288).
The top 10 areas in terms of the value of transactions include Dubai Marina, which tops the list with transactions worth over AED24.96 billion, followed by Wadi Al Safa 3 (AED20.99 billion), Palm Jumeirah (AED19.43 billion), Jebel Ali Industrial First (AED14.02 billion), Business Bay (AED13.3 billion), Al Khairan First (AED10.81 billion), Hadaeq Mohammed bin Rashid (AED10.27 billion). Jebel Ali First (AED9.64 billion) and El Merkadh (AED9.41 billion).
Real estate mortgages
Dubai Marina ranked first among the top 10 areas for number of mortgages with 760, followed by Al Barsha South Fourth (538), Al Thanyah Fifth (536), Burj Khalifa (520), Al Awir First (496), Jebel Ali First (473), Hadaeq Mohammed bin Rashid (453), Wadi Al Safa 5 (409), Business Bay (400), and Palm Jumeirah (347).
Wadi Al Safa 3 area topped the list in terms of the value of mortgages (AED14.25 billion), followed by Jebel Ali First Industrial (AED13.91 billion), Jebel Ali First (AED6.15 billion), Palm Jumeirah (AED4.47 billion), El Merkadh (AED3.27 billion), Al Khairan (AED9.71 billion), Dubai Marina (AED2.55 billion), Business Bay (AED2.51 billion), Nad Hessa (AED1.83 billion), and Warsan 1 (AED1.74 billion).