meed-logo

line1 line2 line3
SIGN IN / REGISTER

Ownership drive spurs Dubai property market

31 July 2023

 

The UAE’s real estate market has continued to evolve quickly this year. Dubai-based real estate portal Property Finder is at the forefront of these changes, and this year has experienced a leap in sales transactions from Dubai and Abu Dhabi. 

There has been a 34.1 per cent surge in UAE real estate transactions, which totalled AED30.41bn ($8.3bn) in June, coupled with a 17.78 per cent rise in transaction volume, fuelled mainly by a 46.6 per cent year-on-year upswing in off-plan property deals. This growth came despite a marginal 1.3 per cent dip in existing property sales.

“The UAE’s robust strategy has begun to yield fruit,” says Scott Bond, Property Finder’s UAE country manager (pictured). 

According to Bond, two primary changes are visible in the market. Firstly, there has been a notable increase in people preferring property ownership over rentals.

“Traditionally, the UAE has had a rental-heavy market, but there’s a clear shift towards establishing roots here,” he says.

Hooking investors

A significant contributor to the growth of the UAE’s real estate market is the country’s Golden Visa scheme, which has played a key role in attracting foreign investment.

“The Golden Visa has been instrumental in transforming the UAE into a more attractive and viable option for investors and entrepreneurs worldwide,” says Bond. 

The visa offers a 10-year renewable residency to property investors who invest at least AED5m in the real estate sector. This move has fuelled the surge in property transactions and brought about a significant shift in the demographic landscape.

The UAE government has also moved to allow 100 per cent foreign ownership of companies. This eliminates the need for a UAE national to hold the majority share in mainland companies, attracting more foreign investors to establish businesses and invest in real estate. 

Property Finder has also observed burgeoning interest from global buyers, suggesting that the UAE is increasingly seen as a place for economic diversification. The UAE’s multicultural ethos, housing over 200 nationalities, makes it a prime location for international real estate investments.

“In Dubai alone, there has been about a 52 per cent year-on-year increase in the total volume of transactions, rising from around 20,000 transactions in the first quarter of 2022 to about 31,000 in the first quarter of 2023,” says Bond.  

“Similarly, the transaction value in Abu Dhabi skyrocketed over 200 per cent from AED3.6bn in the first quarter of 2022 to AED11.6bn in the same period this year.”

Dubai property market soars during bumper June

In June 2023, Property Finder’s data revealed significant growth in Dubai’s property market. There were 10,419 transactions valued at AED30.41bn, indicating a year-on-year rise of 17.78 per cent in volume and 34.1 per cent in value.

This was the highest June transaction volume and value over the past decade.

Buyers’ preferences for property types largely mirrored those of the previous month. Of all prospective purchasers, 57.5 per cent were keen on apartments, and 42.5 per cent were interested in villas or townhouses. Two-bedroom flats were the top choice, contributing to 34.1 per cent of searches, trailed closely by one-bedroom apartments at 33.4 per cent.

In the rental sector, 78.5 per cent of tenants were in the market for flats, with 61.8 per cent favouring furnished properties. Among villa or townhouse tenants, three-bedroom units were most in demand, chosen by 43.4 per cent of renters.

The off-plan segment significantly influenced the rise in the real estate market in June, accounting for 49.6 per cent of all sales transactions and 41.5 per cent of the total transaction value. Off-plan property sales volume grew by 46.6 per cent year-on-year, leading to over 5,165 transactions. The value of these transactions experienced an 80.26 per cent surge, exceeding AED12.6bn.

Areas including Dubai Marina, Palm Jumeirah, Dubai Harbour, Dubai Creek Harbour, Dubai Hills, Burj Khalifa, Jumeirah Lakes Towers, Jumeirah Village Circle, Umm Suqeim Third and Dubai Design District represented 68 per cent of the total off-plan sales value and 54 per cent of transactions.

Existing property transactions recorded a minor dip of 1.3 per cent year-on-year, totalling about 5,254 transactions. However, their value continued to grow by roughly 13.4 per cent, attaining AED17.8bn.

The most sought-after locations for owning flats were Dubai Marina, Downtown Dubai and Business Bay, whereas Dubai Hills Estate and Palm Jumeirah were popular for those wishing to own villas or townhouses.

 

https://image.digitalinsightresearch.in/uploads/NewsArticle/11038561/main.gif
Colin Foreman

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Veolia wins Jordan water services contract

    18 February 2026

    Register for MEED’s 14-day trial access 

    France's Veolia has signed a four-year performance-based management contract with the Water Authority of Jordan to support water and wastewater services in the country’s northern governorates.

    Under the contract, Veolia will provide operations, maintenance and management services to Yarmouk Water Company, the public utility responsible for water supply and wastewater services in the region.

    The agreement covers Irbid, Jerash, Ajloun and Mafraq, an area spanning nearly 30,000 square kilometres and covering about 3 million people.

    The scope includes water and wastewater operations, maintenance, billing and collection, and customer service.

    According to the firm, the performance-based structure prioritises measurable improvements, including service delivery, cost efficiency and revenue management.

    The company said it will deploy technical and management specialists to support operations, rehabilitation works and investment initiatives.

    The contract builds on Veolia’s existing operational role in Jordan’s water sector. The company operates the Disi-Amman scheme, which supplies about 100 million cubic metres of drinking water a year, under an operations and maintenance contract.

    It also operates the Al-Samra wastewater treatment plant, which produces about 133 million cubic metres of treated wastewater annually for agricultural reuse.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15684109/main0535.jpg
    Mark Dowdall
  • SAR tenders phosphate rail project management deal

    18 February 2026

     

    Register for MEED’s 14-day trial access 

    Saudi Arabian Railways (SAR) has floated another tender inviting firms to bid for a contract covering the project management consultancy services for its Phosphate 3 rail programme.

    The tender was issued on 15 February with a bid submission deadline of 5 April.

    The contract duration is 54 months.

    The latest tender follows SAR floating a multibillion-riyal tender to double the tracks on the existing phosphate transport railway network connecting the Waad Al-Shamal mines to Ras Al-Khair in the kingdom’s Eastern Province.

    The tender – covering the second section of the track-doubling works, spanning more than 150 kilometres (km) – was issued on 9 February. The bid submission deadline is 15 April.

    Earlier this month, MEED reported that SAR received bids from contractors on 1 February for the project’s first phase, which spans about 100km from the AZ1/Nariyah Yard to Ras Al-Khair.

    The scope includes track doubling, alignment modifications, new utility bridges, culvert widening and hydrological structures, as well as the conversion of the AZ1 siding into a mainline track.

    The scope also covers support for signalling and telecommunications systems.

    The tender notice was issued in late November with a bid submission deadline of 20 January.

    Switzerland-based engineering firm ARX is the project consultant.

    MEED understands that SAR is expected to tender a total of four packages for the phosphate railway line.

    The other packages expected to be tendered shortly include the depot and the systems package.

    In 2023, MEED reported that SAR was planning two projects to increase its freight capacity, including an estimated SR4.2bn ($1.1bn) project to install a second track along the North Train freight line and construct three new freight yards.

    Formerly known as the North-South Railway, the North Train is a 1,550km-long freight line running from the phosphate and bauxite mines in the far north of the kingdom to the Al-Baithah junction. There, it diverges into a line southwards to Riyadh and a second line running east to downstream fertiliser production and alumina refining facilities at Ras Al-Khair on the Gulf coast.

    Adding a second track and the freight yards will significantly increase the network’s cargo-carrying capacity and facilitate increased industrial production. Project implementation is expected to take four years.

    State-owned SAR is also considering increasing the localisation of railway materials and equipment, including the construction of a cement sleeper manufacturing facility.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15684025/main.jpg
    Yasir Iqbal
  • PIF-backed firm signs worker accommodation deal

    17 February 2026

    Register for MEED’s 14-day trial access 

    Saudi Arabia's Smart Accommodation for Residential Complexes Company (Sarcc) has signed an agreement with Riyadh-based Mawref Company to develop a 12,000-bed worker accommodation project in North Riyadh.

    The project will cover about 120,000 square metres (sq m), with a total built-up area of 150,000 sq m.

    The development is expected to cost over SR669m ($178m), with the first phase slated for completion in 2029.

    Sarcc is backed by the Public Investment Fund (PIF), the Saudi sovereign wealth vehicle.

    The agreement follows Sarcc signing another agreement in September last year with privately-owned local firm Tamimi Global Company to explore collaboration in developing worker accommodation facilities in the kingdom.

    The PIF launched Sarcc in October 2024 with the aim of developing and operating staff housing and accommodation assets in the kingdom.

    Sarcc will develop and operate the staff accommodation facilities at major construction projects in Saudi Arabia.

    The company will seek opportunities to invest in the sector to strengthen staff housing standards. Sarcc will also look to engage the private sector by enabling investment and partnership opportunities in sectors including construction, catering, transportation and retail.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15672262/main.gif
    Yasir Iqbal
  • KBR wins 10-year maintenance contract from Petro Rabigh

    17 February 2026

    Register for MEED’s 14-day trial access 

    Saudi Arabia's Rabigh Refining & Petrochemical Company (Petro Rabigh) has awarded US-based consultant KBR a 10-year contract to provide maintenance services covering the company’s polymer plants in Rabigh, on the kingdom’s Red Sea coast.

    “This [contract award] marks a major step in Petro Rabigh’s transformation journey, supporting safer operations, stronger reliability and long-term improvement across its facilities,” Petro Rabigh said in , without providing further details.

    Work on the operations and maintenance contract will be executed by KBR’s  business line, which operates under the Houston-headquartered firm’s Technology Solutions portfolio, sources told MEED.

    Prior to this contract, in March 2024, Petro Rabigh awarded KBR a similar five-year asset condition monitoring programme contract. As part of that job, KBR is to provide predictive maintenance services at Petro Rabigh’s main plant.

    Petro Rabigh was originally established in 1989 as a basic topping refinery with crude oil processing facilities, located in Rabigh, 165 kilometres to the north of Jeddah in Mecca Province.

    Saudi Aramco and Japan’s Sumitomo Chemical Company formed an equal joint venture in 2005 to transform the Petro Rabigh crude oil refining complex into an integrated refinery and petrochemicals complex, with the strategic objective of expanding Saudi Arabia’s annual production capacity of refined products and petrochemicals.

    Three years after the creation of the Petro Rabigh joint venture, the partners floated 25% of its shares in an initial public offering on the Saudi Stock Exchange (Tadawul) in 2008, following which Aramco and Sumitomo Chemical each held 37.5% shares in Petro Rabigh, with the remaining shares listing on the Tadawul.

    In October last year, however, Aramco completed the acquisition of an additional 22.5% stake in Petro Rabigh from Sumitomo Chemical. Following the completion of the transaction, valued at $702m or SR7 a share, Aramco became the majority shareholder in Petro Rabigh, with an equity stake of 60%, while Sumitomo retains an interest of 15%. The remaining 25% shares of Petro Rabigh continue to trade on the Tadawul.

    ALSO READ: Petro Rabigh and Indian firm to study joint project investment

    Following the formation of the Petro Rabigh joint venture in 2005, Aramco and Sumitomo Chemical launched the expansion of the refining facility into an integrated refining and petrochemicals complex in 2006, investing $9.8bn in the project, 60% of which was secured through external financing. Engineering, procurement and construction works on phase one were completed in 2009, with the integrated downstream complex entering operations in November of that year.

    The Petro Rabigh downstream complex consists of a topping refinery that has a 340,000 barrel-a-day (b/d) crude distillation unit, a 47,000 b/d hydrotreater, a 12 million cubic-feet-a-day hydrogen plant, a 75,000 b/d naphtha merox unit and a 60,000 b/d kerosene merox unit, along with supporting utilities, product tankage and a marine terminal.

    Aramco and Sumitomo Chemical initiated Petro Rabigh’s phase two expansion project, valued at $8bn, in 2014. The second expansion phase was commissioned in 2018 and added 15 chemicals plants to the Petro Rabigh complex, raising the facility’s total production capacity to 18.4 million tonnes a year (t/y) of petroleum-based products.  

    The expansion also increased Petro Rabigh’s capacity to process an additional 30 million cubic feet a year of ethane into 2.4 million t/y of ethylene and propylene-based derivatives, and achieved a naphtha output of 3 million t/y.

    Expansion of the main existing chemicals plant and the establishment of a clean fuels complex comprising polyether polyols, naphtha treating and sulphur recovery units were also part of the phase two project.

    Photo credit: Petro Rabigh on LinkedIn

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15670196/main5008.jpg
    Indrajit Sen
  • Bidders await NWC decision on sewage contract

    17 February 2026

     

    Saudi Arabia’s National Water Company (NWC) is evaluating five bids for package 12 of its long-term operations and maintenance (LTOM12) sewage treatment programme.

    Known as the North Western B Cluster, LTOM12 forms part of the second phase of NWC’s rehabilitation of sewage treatment plants programme.

    The contract covers the construction and upgrade of seven sewage treatment plants with a combined capacity of about 162,000 cubic metres a day (cm/d).

    As MEED understands, the companies that have submitted proposals include:

    • Alkhorayef Water & Power Technologies (Saudi Arabia)
    • Civil Works Company (Saudi Arabia)
    • Miahona (Saudi Arabia)
    • Beijing Enterprises Water Group – BEWG (Hong Kong)
    • Al-Yamama (Saudi Arabia)

    Earlier this month, MEED exclusively reported that six contractors are competing for the North Western A Cluster Sewage Treatment Plants Package 11 (LTOM11), which has an estimated value of about $211m.

    The project involves the construction and upgrade of two sewage treatment plants with a combined capacity of about 440,000 cm/d.

    The scheme is being procured on an engineering, procurement and construction (EPC) basis with a long-term operations component. 

    It is understood that contracts for LTOM11 and LTOM12 will be awarded in May.

    In January, a consortium of United Water (China), Prosus Energy (UAE) and Armada Holding (Saudi Arabia) won the main contract for the Northern Cluster Sewage Treatment Plants Package 10 (LTOM10).

    This contract was the first to be awarded under the second phase of NWC’s rehabilitation of sewage treatment plants programme.

    NWC previously awarded $2.7bn-worth of contracts for the first phase of its LTOM programme. This comprises nine packages covering the treatment of 4.6 million cm/d of sewage water for the next 15 years.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15670141/main.jpg
    Mark Dowdall