The UAE’s economy witnessed a commendable 3.6% expansion last year, largely fuelled by the dynamism of its non-oil sectors. The key growth drivers included financial services, transport, and logistics, followed by the vibrant real estate sector.
In 2023, the UAE’s gross domestic product (GDP) reached AED 1.68 trillion ($456.56 billion) at constant prices, with the non-oil sector growing by an impressive 6.2% to AED 1.25 trillion. Despite a 3.1% contraction in the oil and gas sector, the real estate sector, alongside construction and transport, demonstrated resilience and growth.
Thriving Dubai Real Estate Sector
In particular, the Dubai real estate market has emerged as a global investment hotspot. What attracts international buyers and investors is the high capital gain potential of Dubai’s properties. Public sector investments in infrastructure projects have bolstered the sector’s performance. Notably, the expansion of the Etihad Rail network and Al Maktoum International Airport is sure to drive the real estate market growth.
The anticipated boost in tourism, driven by infrastructure developments, is expected to have a profound effect on the luxury real estate segment. For instance, Dubai South district is experiencing remarkable growth, with numerous key real estate projects underway to capitalize on the upgradation of Al Maktoum Airport as the world’s largest airport.
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