W Capital, the real estate brokerage firm based in Dubai, said that annual sales in the real estate sector of Dubai are on course to reach a new record number, with the value rising to AED 400 billion in 2023.
Based on the data obtained from the Dubai Land Department (DLD), this would be the first time for sales to reach such a record.
Since January 2023, there has been an increase in the value of real estate sales to over AED 393 million, which is the highest figure to have been recorded in the history of the sector.
More than 127,000 deals were recorded and since there is still time for the year to end, the sales are expected to exceed the AED 400 billion mark.
According to CEO, Walid Al Zarooni, the Dubai real estate market would continue to exhibit the same historical momentum during the next year after enjoying significant growth in this year.
The real estate market is also approaching the fourth year in which prices have increased consecutively in the third market cycle.
It is also a matter of time to figure out whether the market will be able to break these new records or not.
According to market experts, the real estate market is expected to see a continued increase in demand and this could push up prices up to new highs.
Due to this momentum, the real estate market in Dubai is becoming more attractive for investors all over the globe.
Walid Al Zarooni said that the high sales do not just represent the growth in the luxury real estate sector, but also in the medium-sized real estate category, along with hospitality and commercial units.
Dubai is currently leading the luxury real estate sector. The CEO confirmed that the legislative environment that Dubai provides is also one of its biggest appeal.
This is because it considers the rights of all parties and maintains the discipline of foreigners and citizens alike.
Investor confidence has also gotten a boost due to the speed of litigation and this provides them the motivation needed for pursuing residency.
Moreover, the real estate market has also adopted legislation and best practices, which regulates the processes of off-plan sales, property ownership and rentals.
Al Zarooni said that the latest analysis regarding the future prospects of Dubai’s real estate sales show that in the coming year, the main residential real estate market will continue to garner investors’ interest.
This is because the emirate continues to be destination for investors who are looking for affordable investment opportunities that can generate solid long-term investment returns.
The CEO said that the trend would continue, with deal volumes likely to increase and ready-to-go properties would see a growth in demand.
Moreover, the limited supply and a higher number of ‘cash’ investors and buyers who are not as sensitive to rising interest rates and inflationary pressures would also contribute to the growth.
Dubai is likely to enjoy a strong performance because it holds a prestigious position both locally and globally.