Welcome to Extreme Investor Network, where we bring you the latest insights and updates on the economy, particularly in the real estate sector. Today, we will dive into the thriving property market of Dubai and explore the reasons behind its continuous growth and success.
Dubai’s property market is showing no signs of slowing down, with 2024 poised to be another record-breaking year in terms of sales figures and property values, as reported by local real estate firms. The increasing demand for property, especially in the luxury segment, is driving up prices not only for homes but also for other commodities in the city. In fact, the United Arab Emirates is expected to retain its position as the world’s top wealth magnet for the third consecutive year, attracting talented individuals and investors from around the globe.
Hussain Sajwani, the chairman of Dubai’s property giant Damac, acknowledges the positive impact of this demand on the market but also raises concerns about the city becoming an expensive place to live. As influx of people leads to heightened demand for housing, schooling, and services, prices are driven up, which in turn raises inflation. Sajwani emphasizes the need for the government to address these challenges and find sustainable solutions to manage the continuous growth of the city.
The latest data from the Dubai property market paints a clear picture of the surging demand. Property sales in July 2024 reached 49.6 billion dirhams ($13.5 billion), marking a significant 31.63% increase from the same period in 2023. Elite Merit Real Estate reported over 43,000 property transactions valued at approximately AED 122.9 billion in the first half of 2024 alone, driven by rapid absorption of new inventory, with an estimated 80% of launched units already sold.
Sajwani remains optimistic about Dubai’s future, highlighting the city’s attractiveness to a wide range of individuals, from taxi drivers to businessmen, as well as the influx of talent and businesses. The Covid-19 pandemic acted as a catalyst for Dubai’s growth, as it positioned itself as a global city open to tourists, remote workers, and entrepreneurs, unlike many other parts of the world under lockdown.
When asked about the stability of Dubai’s property market in comparison to previous boom-and-bust cycles, Sajwani expressed confidence in the current regulatory framework. Strict regulations put in place by the Dubai government have ensured transparency and accountability among developers, customers, and zoning practices, offering a level of protection for investors and ensuring market efficiency.
As we continue to monitor the dynamic landscape of Dubai’s property market, stay tuned for more exclusive insights and analyses from Extreme Investor Network, your premier source for all things economy. Subscribe to our newsletter to stay ahead of the curve and make informed investment decisions in the ever-evolving real estate sector.