Dubai Real Estate at the Forefront
Waleed Al , Zarooni
19 September 2023
Dubai's continued brilliance has enabled it to be a global leader in luxury real estate.
Recent reports confirm the continuation of the unprecedented state of brilliance in the real estate sector in Dubai, and among those reports that show the global attractiveness and great ability of the Dubai real estate market to attract foreign investments, and the competition of global investment destinations in the real estate sector, came the report of the real estate consultancy company «Knight Frank».
The report indicates that Dubai consolidated its global lead in the value of luxury real estate sales during the second quarter of 2023, as it recorded the highest number of sales of luxury properties in the world since the beginning of this year, making the emirate away from its closest competitors such as: London, Hong Kong, and New York.
This comes with direct support from the continued significant increase in the number of high-net-worth arrivals to Dubai, and the increasing attractiveness of the emirate, a global destination to live, work and visit, to witness the real estate market in Dubai booming, contrary to the trend prevailing in many parts of the world, where home values fell amid high interest rates, and gloomy growth expectations globally.
An additional report shows that August saw apartment values rise in Dubai, the highest pace in nearly 10 years, according to CBRE Group, adding to the real estate boom that has turned the emirate into one of the world's most important housing markets.
According to the report quoted by Bloomberg, the real estate market in Dubai, which is still driven by the demand for villas, is now witnessing a rise in the prices of apartments, which constitute about 85% of the housing supply in the emirate, which it described as the business and tourism center in the Middle East, where apartment prices rose 20% on average during the year to last August, representing the best performance since November 2022.
The other report, which is based on official data issued by the Dubai Land Department, shows that Dubai topped the value of real estate transactions locally and in the Gulf during the first half of 2023, as real estate transactions in Dubai from the beginning of 2023 until the end of last June achieved about $ 69.4 billion, representing 79% of the total real estate transactions in the UAE amounting to $ 88.3 billion, while Dubai accounts for 56.5% of the total Gulf real estate transactions, which amounted to $ 122.7 billion. In the first half.
These reports confirmed that rental yields in Dubai are much higher than what investors in London, New York, or Hong Kong can get.
CBRE Group estimates the rental return on apartments in Dubai at 7.34%, and indicates that the income of this rent is not taxable, and in comparison, the average return in London is 4.18%, while in the main center of London, where the overwhelming majority live in apartments, it is 3.6%, while the average annual rent for apartments in Dubai is AED 106,674, and AED 322,573 for villas.
All this comes due to the ease of procedures, the strength of legislation that protects investors, and the unprecedented facilities provided to grant residency and citizenship in exchange for buying a property, and enhances the position of the sector in Dubai, the strategic location it occupies, and political stability and diversified economy are among the main considerations for most investors.
WalidAlzarooni@
walid.alzarooni@gmail.com
Chairman of the Board of Directors of «W Capital Real Estate Brokerage»
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