Setting the stage for stronger real estate market growth

Commenting on the launch of the new real estate business groups, Mohammad Ali Rashed Lootah, President & CEO of Dubai Chambers, said: The real estate sector continues to be one of the vital levers for Dubai’s economy and a major contributor to Dubai’s GDP, with a share of more than 9% in the first nine months of 2022 and a year-on-year growth rate of 2.5% in the same period.

With the emirate’s positive economic outlook for 2023, we know the real estate sector will remain strong due to substantial end-user demand and investor confidence in Dubai’s property market. In addition, by leveraging Dubai’s Economic Agenda ‘D33’, we anticipate enormous opportunities for residential and infrastructure construction to continue to support the emirate’s economy while investment and spending for office, industrial, tourism and retail properties will grow even more; especially that Dubai’s population is expected to reach 5.8 million by 2040. Our new Business Groups representing six important real estate sectors are created to maximize growth and diversification in this vital market he added.

The Dubai Land Department assisted in the formation of the new business groups and in identifying their economic activities in collaboration with Dubai Chamber of Commerce. “We welcome the formation of real estate business groups that will work under the governance framework of Dubai Chamber of Commerce. The launch of the business groups is aligned with our role of spreading real estate knowledge and promoting the culture of conducting sound business to the highest internationally recognized standards. Real estate business groups will provide new avenues for constructive debate as well as educational and networking forums for members to engage with key stakeholders, including the Land Department, to influence policymaking and ensure a bright real estate future said H.E. Sultan Butti Bin Mejren, Director General of the Dubai Land Department.

The rent and sales rates for real estate segments such as hospitality, residential, retail, commercial office space and industrial space all saw a significant increase in 2022. According to CBRE, occupancy rates in Dubai’s office properties until Q4 2022 reached 88%, a 10% increase on the previous year’s results.

Lootah affirmed that Dubai Chamber of Commerce is committed to promoting the interests of its members and advocating on their behalf to maintain and enhance Dubai’s favourable business environment as well as the competitiveness of the emirate’s economy. “With this in mind, the launch of the six new real estate business groups is a significant initiative that will provide an open space for meaningful discussions amongst our member companies working in real estate, other industry leaders and key government stakeholders to achieve optimum results for a thriving real estate ecosystem he added.

The launch of the six real estate business groups comes as part of Dubai Chamber of Commerce’s plan to establish a 100 sector-specific business groups by March 2023 to develop the private sector’s contribution to sustainable development and boost the business community’s competitiveness within Dubai’s economy and further afield