Dubai’s real estate transactions hit a record high last year, as the UAE continued to see a huge influx of buyers despite rising interest rates and property prices, new data showed.
From January to December 2022, total deals in Dubai reached AED 528 billion ($144 billion), up by 76.5% from 2021, according to the Dubai Media Office, quoting figures from the Dubai Land Department (DLD).
The growth in transactions has been partly driven by an increase in the number of women seeking to invest in real estate. Last year saw female contribution to the sector jumping by 50%, according to the DLD data.
“[The] new milestones reflect Dubai’s position as a global hub for investments,” the media office said.
Dubai’s property market has been attracting interest from both domestic and international buyers since COVID-19 restrictions eased in 2020.
According to property consultancy Betterhomes, demand for property in Dubai remained strong in 2022 despite economic headwinds and high interest rate environment.
“Despite rising interest rates, house prices and a strong dollar, demand was incredibly resilient in 2022,” the consultancy said in a report, citing that it registered 39% more new buyers, with a ratio of 19 buyers for every seller in 2022.
During the past 12 months, Dubai attracted investors from various markets, with Russians topping the list as the leading non-resident buyers.
There was also a huge influx of wealth being invested in real estate from foreign buyers in the UK, Italy and France.
“Dubai’s real estate market has long attracted diverse international buyers. This trend has become more prominent in recent years as more people started seeing Dubai as a safe haven, offering security, lifestyle, tax efficiency and a business-friendly environment amidst geopolitical and global economic uncertainty in the rest of the world,” Betterhomes said.
(Reporting by Cleofe Maceda; editing by Seban Scaria)