Economic growth of the UAE and especially Dubai, makes the emirate an attractive place to invest in. While searching apartments in Downtown Dubai, UAE you can find lots of offers on Ax Capital website. And in our article we will have a look at the state of economy in 2022, some prospects for it growth in 2023 and the reasons why people come to this country, both for life and as a country where real estate market allows to earn a good income.
Dubai economic growth in Q1 2022
Dubai’s economy posted a 5.9% year-on-year growth in gross domestic product or GDP in the first three months of 2022, according to the statistics center. At the same time, from January to March 2022, the highest development of 47% was recorded in the hotel business and 40% in the transport industry and warehousing.
It is noted that in the tourism industry, high rates are also recorded, e.g., from January to May 2022, the number of tourists amounted to 6.2 million people. In addition, hotel occupancy rose to 73.1% in May compared to 58.5% in 2021.
According to data from the DLD, the emirate’s real estate sector posted a year-on-year growth of 1.3% in the first three months of 2022. A rapid increase in the number of transactions and the volume of sales value has been recorded, which will largely affect the growth of GDP.
Dubai’s economy successfully rebounded by 6.2% in 2021 after contracting 11.8% in 2020 due to the pandemic, according to official data. In addition, despite the problems in the world, the economy has demonstrated resilience in the first three months of 2022. According to experts from the National Bank, GDP growth in 2022 will be 4.5% in the emirate.
The UAE economy: accelerating growth in 2022-2023
In the UAE, according to experts, economic growth in 2022 will accelerate and amount to 4.3% and 5.2% in 2023 compared to 1.4% in 2021. It is noted that the acceleration of GDP growth in the UAE will be facilitated by the expansion of domestic credit, the surplus of current operations against the backdrop of rising oil prices and the development of non-oil sectors of the national economy.
According to official data, the non-oil sectors of the economy showed strong development in March 2022, including in the manufacturing sector. In addition, both domestic sales and the expansion of new export business contributed to economic growth.
Also, the development of the UAE economy in 2022-2023 will be significantly affected by the successfully completed EXPO 2020 International Exhibition, which helped attract foreign direct investment in real estate, retail, tourism and hospitality.
It is assumed that the budget surplus will make it possible to implement the plans outlined by the government and not resort to debt markets amid rising interest rates.
- The UAE GDP is projected to be USD 440 billion in 2022 and USD 467 billion in 2023,
- a GDP per capita of USD 46,665 in 2022 and USD 48,822 in 2023.
Of course, the specialists expect growth in a real estate sector as well. But anyway, stable economy is a great way to attract people in the UAE and especially Dubai. So, investing in real estate in Dubai will be highly profitable and will bring you a high ROI in the end.
The UAE leading in 11 living standards
The UAE, according to an international report, simultaneously leads in eleven world rankings in terms of the standard of living of residents and local residents. According to the data, residents highly appreciated the level of security and digitalization in the UAE, the types of recreation, professional opportunities, developed transport infrastructure and employment.
- As part of the report, 94% of respondents noted a high level of security in the UAE, while in the world this figure is 81%.
- Meanwhile, in the Emirates, 86% of residents emphasized the high level of public services and 90% of those surveyed are satisfied with the easy availability of cashless transactions in the country.
- In addition, 78% of UAE residents noted the availability of medical services, and 79% believe that they will reach new professional heights in the Emirates and are confident in the future.
- Meanwhile, 85% of residents said that not knowing Arabic would not be an obstacle for them in their professional activities, and 83% of residents indicated the ease of administrative services and 75% – to find residential property.
It is worth noting that even earlier, the UAE became the world leader in terms of ease of obtaining resident visas. It is noted that 83% of respondents highly appreciated the visa system in the Emirates, as the authorities are purposefully trying to attract highly qualified specialists to the country, therefore, the country has also simplified the process of obtaining a work permit.
Commercial real estate in Dubai in the hotel sector
Officials from the Department of Economy and Tourism said that the emirate topped the world ranking in terms of hotel occupancy in the first quarter of 2022. Between January and March 2022, 3.9 foreign tourists were reported to have visited the emirate, the best number in a quarter since the start of the pandemic. In addition, there are more than 12,000 restaurants and cafes, offering tourists the cuisine of 200 countries of the world.
According to official data, in the first three months of 2022, the growth in the number of tourists was 214% year on year. Thus, the city confirmed its image as a popular destination among foreign tourists and became the most visited city in the world. In addition, Dubai is the safest city in the world, with 97% of the population vaccinated against coronavirus.
It is noted that in March 2022, 1.78 million foreign tourists visited the city, an increase of 11% compared to March 2019, when 1.61 million people visited the emirate. The ministry noted that the flow of tourists has increased due to the holding of the International Exhibition “EXPO-2020” in Dubai.
According to the department, from January to March 2022, the number of hotel rooms increased by 10% compared to the same period in 2021. Today there are 769 hotels with 140,192 hotel rooms. At the same time, hotel occupancy is 82%, overtaking such popular metropolitan areas as London, Paris and New York.
All of this data above proves that investing in commercial hotel real estate in Dubai is now as profitable as it has ever been.
Real estate agency in Dubai
Do you want to buy property in Dubai? Contact Ax Capital real estate agency: experienced professionals are ready to advise you on the market situation. Cooperating with developers, our agency offers customers the best prices and the most attractive offers.