Dubai has 392 real estate projects under development

Hans Lucas via Reuters Connect

• 42,583 real estate units registered in first half of 2023
• Surge in number of real estate and brokerage licences issued
• Dubai Marina tops transaction value list at AED24.96bn

Nine real estate projects worth AED4.06 billion ($1.11 billion) were completed in the first half of 2023, according to the Dubai Land Department (DLD).

The emirate has 392 real estate projects currently under development, the UAE state-run Wam news agency reported, citing DLD data.

The first half of 2023 saw the registration of 42,583 real estate units, comprising 47,187 apartments worth AED96 billion and 5,546 villas worth AED15 billion. 

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The number of real estate developers registered hit 174.

The rental market saw a robust performance in the first six months, with total lease contracts at 355,515 in the first half. Among these contracts, 166,368 were new contracts, while 189,147 were lease renewals. 

The DLD issued 4,416 real estate licences during the first six months. Real estate licences registered a growth of 55 percent year on year, with brokerage licences in the sale and purchase of properties reaching the highest at 1,592, followed by brokerage in rental properties at 1,008.

Dubai’s real estate sector reported 76,119 deals worth AED283 billion in the first half. Al Barsha South Fourth topped the list of top 10 areas for the volume of transactions with 7,228 transactions, followed by Dubai Marina (6,618) and Business Bay (4,792).

The top 10 areas in terms of transaction value include Dubai Marina, topping at AED24.96 billion, followed by Wadi Al Safa 3 (AED20.99 billion) and Palm Jumeirah (AED19.43 billion).

Dubai’s real estate market is experiencing soaring demand but the supply shortfall from the Covid pandemic is still having an impact and is likely to remain for at least another two years, experts told AGBI earlier this month.

Betterhomes, one of the largest and oldest real estate agencies in Dubai, reported that it has seen an 82 percent increase in buyer leads this year, while the number of property listings was down by 4 percent year on year in the second quarter.

As a result, the number of interested buyers per listing has risen from an average of 10 in the second half of 2022 to double that, peaking at 30 in April.

Dubai’s population is 3.6 million, up from 3.36 million in 2019. As demand for homes has risen, the industry has been trying to catch up and boost supply.

Betterhomes said the first quarter of 2023 saw 5,000 new homes completed. This rose to 12,000 in the second quarter and 30,000 are expected to be ready for occupants by the end of the year.

It is predicted that 50,000 homes will be completed next year. But Liam Dawett from Betterhomes said that Dubai does not have a good track record when it comes to delivering projects on time. He estimates that a quarter of the homes promised will not be completed on time.

“A lot of projects that were meant to have actually launched in 2021 got delayed until about now and we’re just starting to see the catch-up,” Dawett said.

“I would assume that a lot of projects that were meant to be handed over this year have been pushed forward into next year.”