The properties in Dubai will see some increase in the pricing of the properties that falls in the categories of villas and duplexes. There are also new launches of new housing properties in prime locations of popular cities in UAE.
Here we will see some data that was provided to see how much demanding the real estate market of UAE has become.
What the whole world is eyeing is that the real estate market in the United Arab Emirates has witnessed a record $208 billion in transactions, because of the hung number of sales in popular cities like Dubai. Dubai itself has seen around 36% YoY increase in transactions, touching more than 166,400 transactions in the past year of 2023.
The rich people around the world are buying new properties in UAE and the one thing to notice is that the properties that are sold are very expensive. The properties that are close to sea and beach areas are among the demanding properties in cities like Dubai. Locations like Palm Jumeirah and Palm Jebel Ali are good examples of lavish properties providing open water views.
A study showed that the Real estate transactions in four emirates of UAE surged by 22.6% in 2023, for around AED 765.1 billion ($208.34 billion) which is huge. With 193,500 transactions across Dubai, Abu Dhabi, Sharjah, and Ajman, the luxurious property market continues to grow rapidly, contributing to the national economy and rise in the number of interested people from both local and international investors.
By looking at some given data from local real estate departments in the UAE, it has been reported by a News Agency in Emirates that Dubai has maintained its position among the top in terms of transaction values. In 2023, deals in Dubai crossed 634 billion dirhams, marking an increase of 20 percent from the previous year. It also went for more than 166,400 transactions in 2023, which is a 36% increase from 2022.
In Dubai, 157,798 investments were made by 113,655 buyers. Among these property buyers, 71,002 were new investors, taking to a new rise of about a 20% increase. Additionally, 42% of the total new investors were from the non-residents of UAE. This shows that Dubai is still a hotspot for investors to put their money in the property market because Dubai has given them good returns in the past.
People from countries like China, Russia, and India are among the top buyers in UAE because they find Dubai a suitable place to live and spend holidays. The city has also become a hub of companies and starting new businesses. The taxes are also very less and so we are seeing such a huge number of investors in Dubai. The first three months of 2024 was also very good for the sales of apartments and townhouses, as some projects of Damac Properties were sold out in just two days after the launch.
The real estate market in Abu Dhabi also saw an increase in economic activity like Dubai with property agreements worth 87.1 billion dirhams. It also includes 38,404 sales and mortgage transactions across different units in the emirate. The number of real estate mortgages in Abu Dhabi rose by 19.5% YoY to reach 22,800 agreements and this is worth a total of 12.2 billion dirhams.
The market saw a 71% increase in local investors and a 175% increase in investors from the foreigners and non-residents. The prime locations in Sharjah saw the property deeds worth 27.1 billion dirhams in 2023. It is a 13.1% increase from 2022. Some professionals said that this trading volume of non-Arab foreign investors in Sharjah has increased by 165%, with the number of properties traded rising by 131.7% compared to the previous year.
Another thing to look at is the value of mortgage transactions in the emirate which also touched 7.5 billion dirhams. Ajman's real estate market witnessed a good growth of 43% in 2023, with a deal value of more than 16.9 billion dirhams, it is also more than the year 2022. This surge was driven by 11,500 real estate transactions, resulting in a total trading volume of 10.2 billion dirhams out of 8,675 trading transactions.
For the past two years the real estate of UAE is seeing a good percentage of growth which can be seen from the transaction reports of 2022 and 2023. The properties that are expensive and bigger are becoming the new hub of popular cities like Dubai. The sales of the current year is rising from its past year like the sales of 2023 was more than than 2022.
