Dubai Land Department Partners with Digital Dubai to Launch Property Price Index

In a significant move to enhance transparency in Dubai's real estate market and promote data-driven decision-making, Digital Dubai has partnered with the Dubai Land Department to introduce specialized indicators for residential and commercial property sale prices in the emirate. This collaboration aims to strengthen confidence in vital sectors, particularly real estate, which contributed 7.5% to Dubai’s total GDP in 2023.

Hamad Obaid Al Mansoori, Director General of Digital Dubai, emphasized that the partnership reflects the commitment to leveraging advanced digital technologies to enhance sector contributions to the overall economy. He described this collaboration as a model of synergy between government entities, designed to boost market dynamism and attract further investments. Al Mansoori stated, "The ultimate goal is to solidify Dubai's position as a leading global investment hub, particularly in real estate, in alignment with the Dubai Economic Agenda D33."

Marwan Ahmed Bin Ghalita, Director General of the Dubai Land Department, noted that the partnership represents a crucial step towards enhancing transparency and credibility in the market. He explained that accurate indexes reflecting real market prices and trends would enable investors and developers to plan effectively and forecast future developments. This initiative reinforces Dubai's status as the most transparent market in the region, highlighted by its classification in the ‘Transparency’ category of the 2024 Global Real Estate Transparency Index, where it advanced to 28th place globally.

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Younus Al Nasser, Chief Executive of the Dubai Data and Statistics Establishment, highlighted that the partnership provides an integrated data system to monitor the real estate market's performance. He stressed that this initiative would facilitate comprehensive benchmarking across all aspects of the sector, ultimately supporting the performance and activity of key industries in Dubai.

The strategic collaboration aligns with a broader vision to track property price movements, monitor transaction values across various areas, and keep pace with periodic changes. The aim is to generate real estate statistical indicators that will support informed decision-making and provide economic analyses related to property price trends.

The partnership has updated the foundations underpinning real estate indexes, including revisions to the base year and relative weights, ensuring more accurate and transparent results across the emirate. According to recent statistics, the residential real estate price index saw an increase of approximately 2.93% in the second quarter of 2024, with residential villas rising by 6.58% and residential apartments by 1.27%. The commercial real estate price index also demonstrated growth, registering a rise of around 0.48%, with shops and offices increasing by 4.77%.

Future goals of this strategic cooperation include measuring market performance, understanding trends, and assisting in strategic decision-making. The partnership aims to support investment planning by leveraging digital data to identify opportunities for project growth. Additionally, it seeks to monitor the market, providing data to the public and investors for accurate evaluation of opportunities and risks. By granting access to precise data, the initiative will also support academic research, empowering students and professionals in the sector. Furthermore, the collaboration intends to track inflation and economic recession trends, vital indicators for calculating GDP and assessing the impact of price changes on the industry.

This strategic partnership signifies a commitment to continuous improvement in the Dubai real estate sector, further solidifying the emirate's reputation as a global investment hub.