Dubai real estate market shows no signs of slowing down, with 2024 expected to be another record-breaking year in terms of sales, property values, and prices, according to Emirati real estate companies.
The increasing demand, especially for luxury properties, drives home prices and everything else in the city, enhancing the UAE’s appeal as the world’s top wealth destination for the third consecutive year.
For Hussain Sajwani, Chairman of DAMAC Properties, this brings both good and concerning news. He explained, “What concerns me somewhat is that Dubai has become an expensive city, and I previously pointed out that Dubai would become costly.”
He added, “The higher the demand, especially with the influx of talented individuals and ordinary people, the greater the demand.” He pointed out that today, it has become difficult to find school seats, and businesses will raise prices, leading to high inflation, and making Dubai an expensive city. I hope the government finds solutions, but finding those solutions is not easy given the continuous influx of individuals to the emirate.”
The latest statistics on Dubai real estate market indicate increasing demand. In July 2024, real estate sales reached 49.6 billion AED (13.5 billion USD), an increase of 31.63% compared to the same period in 2023, according to the local brokerage firm “Elite Merit Real Estate.”
The company’s report issued on September 10 stated that the first half of 2024 witnessed more than 43,000 real estate transactions with an estimated value of 122.9 billion AED, a 30% increase from last year. The report indicated that this growth is partly due to the “rapid absorption of new inventory,” noting that about 80% of the units launched since 2022 have been sold.
Sajwani said, “Dubai real estate market is performing excellently, and I believe the strong performance will continue, as demand from Europe is very high.” He added, “Everyone wants to move to Dubai, whether they are taxi drivers, restaurant workers, or businessmen. Dubai now attracts not only the wealthy but also diverse talents, growing unprecedentedly compared to the pre-COVID period.”
Sajwani pointed out that the COVID-19 pandemic enhanced Dubai’s appeal as a place to live, as the emirate encouraged tourism and attracted new residents through remote work and entrepreneurship visas while the rest of the world was experiencing lockdowns.
He added, “Dubai today is a global city by all standards, and with its attraction of more talents and companies, we will continue to grow.”
Although Dubai had previously experienced periods of boom and bust, most notably during the 2008-2009 crisis when the real estate market collapsed and many investors struggled to repay their debts, Sajwani emphasized that he is not worried about a repeat of this scenario, noting that the system is now different.
When asked if Dubai has become more stable now, Sajwani said, “Definitely 100%.”
He added, “The main reason for this is the regulatory measures implemented by the Dubai government after the market collapse in 2008 and 2009, which are very strict. These regulations ensure the organization of developers, clients, and zoning. The current system greatly protects customers’ funds and ensures an efficient market, as no one can enter the market and launch a project without stringent controls.”
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