Unprecedented sales in the Dubai real estate market are expected to reach Dhs230 billion by the end of 2022, with a special focus on 6 supportive factors. The UAE economy is making a great comeback this year, so expect more success in Dubai’s real estate sector!
The Dubai real estate market would record unprecedented sales exceeding Dhs230 billion by the end of 2022, to be the highest ever after topping Dhs200b for the first time, compared to Dhs150b last year. This was revealed by Walid Al Zarooni a leading real estate expert and Chairman of the Dubai-based real estate brokerage W Capital to the media recently in Dubai. He said that this is because of 6 major supportive factors which will enable it to break new records in all types of transactions. These are:
– The recovery of the UAE economy
-The growth for oil and non-oil sectors means good things for this sector
-Political stability and high levels of security/safety, contributing positively to the real estate sector
-The commercial resolution to the emirate’s plans of growth and development
– Adopting an approach that is market-centric. Due to these factors, the real estate sector is expected to continue its phenomenal growth in value terms in all sectors, Al Zarooni said. He said that this growth is not limited to the first six months of the current year, but in fact returns each month with record sales according to figures of July and August, until doubling its sales to reach Dhs114.2 billion. He explained that it is a clear indication of the continuation of record sales in the sector during the remainder of this year, which will be driven by a number of factors. The real estate sector is expanding because of the recovery in Dubai’s economy as a whole, and its growth is expected to continue according to statistics published recently by official government sources, with strong indicators for trade increases, FDI inflows, and employment levels. In addition, political stability and high levels of security/safety are factors that are important to investors’ decisions. As a result, the sectors are expected to continue their expansion and real estate is seen as a key driver of the growth, benefiting developers and brokers. In this context, Al Zarooni said that the Dubai market is also recovering thanks to political stability and high levels of security/safety which are considered as real added values by investors. “This is at the forefront of investors’ priorities and is boosting their confidence about different nationalities,” he said.
He added that this real estate sector growth is not limited to the first half of this year from January to June, but is continuing throughout the year with record monthly sales reaching Dhs114.2 billion during the first six months of this year, compared to Dhs81 billion during the same period last year. Al Zarooni explained that the growth is expected to continue during the rest of this year and into 2022 since it has been achieved despite the expectations of an economic recession for major advanced economies and the majority of emerging markets. The UAE is a good example as it enjoys positive growth in all sectors, specifically real estate, thanks to political stability and high levels of security/safety. While this is definitely an important factor, it is not the only one that contributed to the sector’s performance. As a result, the real estate sector is expected to continue its phenomenal growth in value terms in all sectors. Al Zarooni said that this growth is not limited to the first six months of the current year from January to June, but in fact, returns each month with record sales according to figures of July and August. This is so for every year since 2000, and it is also clearly indicated by the doubling of sales during such periods compared to periods without a record increase. “This is an indication of the continuation of record sales in the sector during the rest of this year (2022), which will be driven by a number of factors. The real estate sector is growing because of the recovery in Dubai’s economy as a whole, and its growth is expected to continue according to statistics published recently by official government sources, with strong indicators for trade increases, FDI inflows, and employment levels,” Al Zarooni said.