The real estate sector in Dubai is one of the major economic sectors that have led the economic growth, and it effectively contributes to the economic growth in Dubai. The economic growth’s rate represented by GDP growth rate with constant prices is one of the major indicators of the economic performance.
In the last few years, Dubai has achieved a record economic growth rates driven by the economic initiatives and incentives provided by the government of Dubai in an effort to increase the economic growth and stimulate the different economic sectors.
Dubai GDP reached AED 407 billion in 2019 compared to AED 389 billion in 2018 with a GDP growth rate of 2.2%.
Real estate activities sector contributed by 7.2% in the GDP growth in 2019, with an added value of AED 29.4 billion growing by 3.3% compared to 2018.
The real estate activities sector has effectively contributed to the economic growth of Dubai in the last few years. The sector contribution percentages varied, between 6.3% in 2014, and reached to the highest annual value of 7.2% in 2019, which shows the importance of the real estate sector in the economic activity in Dubai.
Furthermore, the real estate transactions in 2019 have grown notably in terms of number and value of the real estate transactions. The improvement has continued in the first few months of 2020, and the percentage of achieved growth in the real estate transaction number was 8% in 2019, with more than 57,000 registered real estate transactions, compared to more than 52,000 real estate transactions in 2019.
The real estate transactions value has reached approximately AED 226 billion in 2019, compared to a value of AED 221 billion in 2018, with a growth rate of 2.1%. The improvement in the value of real estate transactions was due to the remarkable growth in the value of sales and mortgages. The value of real estate sales in 2019 has reached AED 81 billion, compared to a value of AED 77 billion in 2018, with a growth rate of nearly 5%. The value of real estate mortgages has reached AED125 billion in 2019, compared to AED 120 billion in 2018, with a growth rate of nearly 4%.
Moreover, the number of real estate investments in 2019 has reached more than 47,000 investments, with a growth rate of 18%, compared to 40,000 investments in 2018. The number of real estate investors has also increased significantly in 2019 compared to previous years.
There were more than 34,000 real estate investors in 2019, with a 14% growth rate, compared to 29,846 in 2018. The number of real estate investors in 2019 is larger than their number in 2016, which was around 32,000 real estate investors.