Real estate leads economic activity in Dubai
8,011 operating licenses in the sector, including 680 real estate developers
The real estate sector has grown into a significant component of the economy in Dubai and the number of companies engaged in real estate and related activities in Dubai has now reached 8,011, including more than 680 real estate developers. According to the Business Registration & Licensing (BRL) sector in Dubai Economy, the emirate's real estate sector has expanded substantially since 2001 with a 22.4 per cent growth recorded within the last five years alone.
Real estate brokerage accounts for 43 per cent of the all the activities (5,755) recorded in the sector since 2011 followed by real estate leasing and rental (18 per cent, or 2,373 activities). There have been 1,390 activities relating to sale and purchase of lands and real properties, 1,285 relating to property management and leasing, followed by 740 relating to supervision services, 682 real estate development activities, 585 leasing and real estate management services for third parties, 163 related to real estate consultancy and 106 activities relating to administrative supervision of the owners associations.
Moreover, real estate companies are engaged in other activities such as mortgage brokerage, real estate valuation services, real estate exhibitions, real estate registrar, real estate auctions, real estate survey services, real estate inspection services and real estate services trustees.
Data on Dubai's real estate sector activity underlines Dubai's confident and ambitious steps towards cultural as well as economic diversity and tourism growth aimed at achieving prosperity for both citizens and residents. Dubai Economy, and particularly the BRL sector has been instrumental in developing the real estate sector issuing the necessary licenses in co-operation with the Real Estate Regulatory Agency in the emirate.
Over the decades, real estate activity has developed and branched out into varied activities that complemented overall growth in the sector, and broadened the choices and requirements of investors.
Brokerage in the sale, purchase and leasing of real estate is one of the most notable activity in the local real estate sector. Only UAE nationals and GCC nationals are permitted by RERA to practice this activity under the applicable laws and regulations. However, there are other activities that foreigners can practice in partnership with a national under legal forms such as limited liability companies (LLCs).
The last five years stand out in the number of real estate companies that entered the market - 2,766, or 34% of the total, as against 2,260 companies that came on stream during 2077-2011 and the 1,855 registered during 2002-2006. The steady increase shows the growing confidence in the economic viability and investment potential in the sector mainly due to its pivotal role in social and economic development in Dubai where population density is on the rise as a result of economic and industrial prosperity.
Staff Report (2017, July 07). Real estate leads economic activity in Dubai. Khaleej Times. Retrieved from http://www.khaleejtimes.com/real-estate-leads-economic-activity-in-dubai