Bumper year for Dubai real estate as transactions soar to record high

The number of deals recorded in 2023 climbed to 166,400, worth $173 billion

Dubai has reported an increase in real estate activities in 2023. Antonie Robertson / The National

Dubai registered a record 1.6 million real estate transactions across market segments, an almost 17 cent jump on an annual basis, as the emirate’s property market continues to strengthen amid robust economic momentum, according to the latest data from the Dubai Land Department.

The overall number included real estate deals from investments, mortgages and sales transactions to rental contracts recorded last year, up from about 1.3 million transactions reported in 2022, the Dubai Media Office said in a statement on Thursday.

Total value of real estate deals in the emirate reached Dh634 billion ($172.6 billion), with the number of transactions hitting 166,400 in 2023. This marked an annual growth of 20 per cent in the value of deals and 36 per cent in the number of transactions.

New real estate investments grew 55 per cent to almost Dh412 billion in the January-December period, from nearly 157,798 deals by 113,655 owners, 71,002 of whom were new investors to the emirate's property market. The percentage of non-resident investors climbed to 42 per cent of the total new investors, data showed.

The results indicate the “strength and versatility” of Dubai’s economic performance that will help the emirate achieve its Dubai Economic Agenda D33 goals, said Marwan bin Ghalita, DLD’s acting director general.

Launched in January last year, D33 aims to double the size of Dubai’s economy, with a target of reaching Dh32 trillion by 2033 and establishing the emirate among the top three cities in the world.

Dubai's property market has rebounded strongly from the coronavirus-induced slowdown, helped by government initiatives such as residency permits for retired and remote workers, and the expansion of the 10-year golden visa programme.

The emirate’s residential market recorded its highest quarterly price rise in a decade in the third quarter of last year as demand continued to strengthen, a report by property consultancy ValuStrat found.

The consistent increase in the emirate's population is also supporting growth. Dubai received 100,240 residents in 2023, which pushed the number of residents to 3.65 million, Dubai Statistics Centre data showed.

In 2023, the count of female investors surged to 38,059, contributing Dh90.5 billion through 46,725 investments, DLD data revealed.

Nearly 7,449 Gulf investors accounted for 10,441 investment deals valued at Dh30.75 billion last year, the DLD said.

Dubai's economy expanded by an annual 3.3 per cent in the first nine months of last year, carrying momentum from the first half of the year when gross domestic product expanded by 3.2 per cent on an annual basis to Dh223.8 billion, according to official data.