Dubai completes nine real estate projects worth over $1bn in first half

First six months of the year recorded registration of 42,583 real estate units in the emirate

Dubai's property market has bounced back strongly from the coronavirus-induced slowdown. Reem Mohammed / The National

Dubai completed nine real estate projects worth Dh4.06 billion ($1.11 billion) in the first half of the year as the emirate's property market continued to attract investment, the Dubai Media Office said on Wednesday.

More than 390 projects are currently being developed in the emirate, Dubai Land Department data shows.

The latest figures 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”, the media office said.

There were 42,583 real estate units registers in the emirate between January and June. During the period, 47,187 units worth Dh96 billion, and 5,546 villas worth Dh15 billion were sold, while the number of real estate developers registered with the land department increased to 174.

Dubai's property market has bounced back strongly from the coronavirus-induced slowdown, helped by government initiatives such as residency permits for retirees and remote workers.

The UAE's move to expand the 10-year golden visa programme, the economic gains generated by Expo 2020 Dubai and higher oil prices also supported property market growth momentum.

Dubai's economy is estimated to have grown 5 per cent last year and is forecast to grow by 3.5 per cent in 2023, according to Emirates NBD.

The rental market in the emirate also saw a strong performance in the first half of the year as the total lease contracts registered reached 355,515.

During this period, the land department also issued 4,416 real estate licences, an annual surge of 55 per cent.

The high growth in licences demonstrates the department's efforts to bolster the real estate community’s growth by providing efficient real estate service as well as the sector's attractiveness to real estate development companies and brokers, the media office said.

In the first half, Dubai witnessed 76,119 real estate transactions worth Dh283 billion. Al Barsha South Fourth topped the list of top 10 areas for the number of transactions with 7,228. It was 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 (Dh24.96 billion), Wadi Al Safa 3 (Dh20.99 billion), Palm Jumeirah (Dh19.43 billion) and Jebel Ali Industrial First (Dh14.02 billion).

Dubai is also the world's top market for $10 million homes as sales hit $3.1 billion in the first half of the year, edging past Hong Kong and New York, according to global property consultancy Knight Frank.

In the first six months, Dubai achieved 79 per cent of the total number of $10 million homes sold in 2022, according to the consultancy.

Dubai’s residential real estate prices rose in June at the strongest pace since 2014. The average price for residential units in the emirate grew by 16.9 per cent on an annual basis, up from 15.9 per cent year-on-year from the data recorded in May this year, consultancy CBRE said in its Dubai Residential Market Snapshot report.