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Real estate transactions in Dubai increase by 80% to Dh157 billion (€39.25 billion)

The share of non-residential investors stood at 45 per cent in the first quarter of this year, an increase of 25 per cent.

The Dubai property market experienced an unprecedented boom that began last year and has continued unabated this year. In the first quarter of 2023, property transactions in Dubai increased by 80 per cent to Dh157 billion, compared to Dh87 billion in the same period last year. The number of transactions also increased by 49%, reaching 38,715 compared to 26,066 in the same period last year, while sales value increased by 62% to Dh89 billion.

The ease of doing business, the successful management of the pandemic and growing confidence in the local economy have continued to make the emirate’s property sector attractive to residents and foreign investors. Lower interest rates compared to other major cities make Dubai’s property sector attractive to those seeking higher capital and rental yields.

According to Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance, the sector has seen record growth since the beginning of last year, reflecting confidence in Dubai’s economy and its future. In addition, Dubai’s D33 economic agenda is a key driver of this growth.

Experts expect this growth to continue throughout the year, making Dubai one of the best performing markets in terms of capital appreciation. Global property consultancy Knight Frank has forecast a 14% increase in property prices this year, the highest in the world for the second year in a row.

Property prices in Dubai are still much cheaper than in Monaco, Hong Kong, New York, Singapore, London, Geneva, Los Angeles, Paris, Tokyo and other countries. Therefore, the local property market offers investors better returns than the aforementioned markets, which are already trading at much higher levels.

The driving factor behind the growth of the property market is Dubai’s booming economy and the positive impact post Expo 2020 as more and more people relocate to the emirate, especially high net worth individuals. Das Goldene Visum und die Befreiung von der Einkommenssteuer sind ebenfalls attraktive Punkte für ausländische Investoren.

Ausländische Investoren machten im ersten Quartal 2023 45 % der Nichtwohnungsinvestoren aus, ein Anstieg um 25 % gegenüber dem gleichen Zeitraum des Vorjahres. Imran Farooq, CEO der Samana Developers Group, bestätigt, dass die Zahl der ausländischen Investoren in den Projekten des Unternehmens von 50 % auf über 75 % gestiegen ist, hauptsächlich aus europäischen Ländern.

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