DUBAI / WAM
Dubai’s real estate sector represents one of the main economic sectors in economic growth, and it actively contributes to the growth of its economy.
Over the past years, the emirate has achieved record rates of economic growth driven by the economic initiatives and packages that the Dubai Government is undertaking to raise economic growth and stimulate various economic sectors, according to the annual “Real Estate Sector Performance 2020” report issued by the Dubai Land Department (DLD) on Saturday.
Relaesed on the side-lines of the International Property Show and Invest in Dubai Real Estate, the report provides a comprehensive tool for customers in the sector, allowing them to familiarise themselves with the most important results achieved, affirming DLD’s efforts to achieve its vision to position Dubai as the world’s premier real estate destination and a byword for innovation, trust, and happiness.
The report aims to provide
a comprehensive picture of Dubai’s real estate sector’s performance by analysing all aspects of the sector’s performance and the various economic and operational indicators that affect its performance to determine its future trends.
The value of Dubai’s GDP reached AED407 billion in 2019 as compared to AED389 billion in 2018, with a growth rate of 2.2 percent.
But the emergence of Covid-19 in December 2019, and its subsequent outbreak around the world, led to a decline in global economic growth rates, prompting all international institutions to reduce their global growth forecasts for 2020. To avoid the consequences of the pandemic, Dubai provided a package of measures and economic incentives to ensure business continuity and help the various economic sectors overcome the pandemic, most importantly the launch of an economic stimulus package to support companies and the business sector in Dubai to boost financial liquidity, among others, the report noted.
The contribution of the real estate sector to Dubai’s GDP reached 7.2 percent in 2019, and the sector achieved an added value of more than AED29.4 billion, with a growth rate of 3.3 percent compared to 2018. Real estate transactions achieved remarkable growth in 2019 in terms of the number and value of real estate transactions, and this improvement continued during the first months of 2020. The growth rate achieved in the number of real estate transactions reached eight percent in 2019 with over 57,000 real estate transactions, compared to over 52,000 real estate transactions in 2018.
The value of real estate transactions reached approximately AED226 billion in 2019, compared to AED221 billion in 2018, with a growth rate of 2.1 percent. This improvement in the value of real estate transactions is due to the remarkable growth in the value of both sales and mortgages, where the value of sales reached AED81 billion in 2019, compared to AED77 billion in 2018, with a growth rate of approximately five percent, and the value of real estate mortgages reached AED125 billion in 2019 compared to AED120 billion in 2018, with a growth rate of approximately four percent