Real estate market in Dubai. Informed Emirati economic sources reported that the real estate market in the Emirates – Dubai will continue to grow at a rate of 3.5% during the year 2024. Real estate reports also expected that real estate prices will rise at a rate of 5% during the coming year.
- Studies and real estate media sources have attributed their information to the prestigious position that the Emirate of Dubai enjoys locally and internationally. As well as the exceptional vital location, facilitating government procedures, tax exemptions, and other motivating factors for foreign real estate investment.
Through our next article, we will provide the most important information about the future of the real estate market in Dubai: the current situation and expectations for the year 2024. We will also review the most important details about the analysis of the real estate market in Dubai and the Emirates and the factors influencing its progress, in addition to listing the best promising investment opportunities in Dubai and other relevant considerations in this regard.
The development of the real estate market in Dubai: from the first difficulties to modern opportunities
The real estate sector in Dubai has emerged at the forefront of modern development projects and has long preceded the oil sector. Especially through the construction of Arab houses and popular markets in traditional style. The Emirate of Dubai also witnessed a remarkable boom in the construction of modern infrastructure in conjunction with the oil renaissance. The UAE government supported projects to build highways, bridges, paved roads on both sides and other construction works.
- It is worth noting that the clear transformation in the Dubai real estate market was not well noticed, except in the post-oil era. The UAE real estate sector has grown rapidly by establishing many prominent real estate projects. Including the properties of Palm Jumeirah, Burj Khalifa, and Dubai Mall, which contributed to supporting the real estate market significantly and encouraged attracting investors to the region.
The real estate sector in the Emirates faced a set of challenges during the COVID-19 pandemic period, represented by a decline in the prices of residential and commercial real estate and a decline in the rate of demand for them. However, the UAE real estate market was able to once again overcome the difficulties it faced and announced its relaunch in 2022 and 2023, and it continues to grow until the present time.
The most important reasons for the prosperity of the real estate market in Dubai
The most important reasons for the prosperity of the real estate market in Dubai are as follows:
Tax exemption for real estate investments in Dubai
The absence of heavy taxes on the real estate sector in the Emirates is one of the most important factors attracting real estate investors. This effective strategy has contributed to attracting individuals and investment companies seeking to increase their profits without bearing the burden of the high taxes usually imposed in other countries.
A developed and stable economy
The prosperity of the UAE national economy and its rapid growth after the decline of the COVID-19 pandemic contributed to Dubai gaining an advanced position in the Arab world and globally, especially by being a center for trade and commerce, and thus an attractive destination for entrepreneurs and real estate investment companies. This led to high rates of demand for real estate and stimulated the creation, sale, purchase, and rental of real estate in conjunction with the remarkable economic development.
The strong rental market for real estate in Dubai
The Dubai real estate market provides the most important rental offers with continuous and highly profitable returns. This contributed to encouraging real estate investment in 2023, which is expected to grow during 2024 as well. In addition to the increasing population in Dubai and the influx of more expatriates, this has encouraged an increase in demand for rental properties. This comes in different types of apartments, villas, and commercial halls.
Competitive real estate prices in Dubai
The real estate market in Dubai offers all kinds of offers for selling and renting real estate at competitive prices, compared to prices and costs in major cities around the world. This makes it a destination for investors who want affordable investment opportunities with high, long-term investment returns.
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Real estate market analysis in Dubai and the UAE
The results of the analysis of the real estate market in the Emirates – Dubai during the year 2023 showed the following main points:
- The volume of real estate transactions during the third quarter of 2023 reached a total of 31,219 real estate transactions, worth AED 97.5 billion. The market witnessed an increase in the volume of real estate transactions by 4% and a growth of 8% in the total transaction value.
- The average price per square foot also increased by 13% during the year 2023. Thus, prices reached the peak seen in 2014.
- In addition, mortgage transactions witnessed a significant increase of 16% for the current year. Mortgage activities have grown at a remarkable rate of 13% over the past years.
- Off-plan property sales witnessed slight fluctuations but remained 25% higher than last year’s sales figures.
- The commercial real estate sector recorded a high increase in transaction volume, at a rate of 37%, compared to the beginning of 2023.
What are the factors affecting the price escalation in the real estate market in Dubai?
There are a group of factors affecting the rise in prices in the real estate market in Dubai, which are as follows:
- The recent increasing population growth and increased demand for purchasing and renting real estate by residents and expatriates.
- Fluctuations in the economic situation between progress, slight decline, and instances of financial inflation.
- Price indicators of oil and petroleum derivatives and their impact on supporting the UAE economy and the reality of the real estate sector as well.
- Political stability and a safe and stable life that stimulates real estate investment by investors of diverse nationalities.
- Using the latest technologies in the real estate sector, supporting smart home projects, and Internet of Things applications (IOT) in real estate development.
- Supply and demand indicators and real estate price fluctuations according to them.
- Being affected by global economic indicators, including the repercussions of the global financial crisis.
Government measures to regulate the real estate market in Dubai
The UAE government has adopted several laws to regulate the real estate market in the Emirates – Dubai, which are as follows:
- Relying on Dubai Law No. (7) of 2006, as amended by Dubai Law No. (7) of 2019, to regulate all real estate transactions.
- Adoption of Law No. (6) of 2019 regarding ownership of joint properties in Dubai.
- Registration of all off-plan real estate sale transactions in accordance with Law No. (13) of 2008. Amended by Decree No. (9) of 2009, clarified by Decree No. (6) of 2010 and amended by Law No. (19) of 2020.
- Adoption of Law No. (26) of 2007 to regulate the transactions between landlords and tenants.
Promising investment opportunities in the real estate market in Dubai
The most promising investment opportunities in the Dubai real estate market are available within the following real estate areas:
- Real estate in Downtown Dubai.
- Real estate in Dubai Marina.
- Real estate projects in Jumeirah Village Circle.
Benefits of investing in real estate in Dubai: achieving high returns and financial stability
The most prominent benefits of real estate investment in Dubai are as follows:
- Providing the national economy with high and continuous profits.
- Achieving high profitable investment returns from sales and rental operations.
- Investing in a tax-exempt environment, which contributes to attracting more real estate investors of different nationalities.
- Obtaining real estate with high-level infrastructure, designed according to international standards and with the latest technologies in the world of construction, interior and exterior design.
The role of Alaaqari company in the real estate market in Dubai
Alaaqari Company contributes to the real estate market in Dubai by providing the best real estate services to customers, which are as follows:
- Providing a digital platform to display advertisements for buying, selling, and renting real estate.
- Working to communicate with the appropriate client and ensuring the meeting point for both parties of real estate transactions, including sale and rent, in a reliable and safe environment.
- Providing many offers for selling and renting real estate of various types throughout the United Arab Emirates, at varying prices to suit all customers.
- Helping clients by obtaining real estate consultations from the best real estate agents, to suit every client.
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The most important forecasts for the future of the real estate market in Dubai
Real estate forecasts and reports indicate that real estate prices in Dubai will rise by a rate ranging between 5 and 7% during the year 2024. Reports also indicate that apartment prices will decline at a rate of 10% less than in 2023 as a result of the presence of a surplus of residential units in the main real estate areas. While they affirmed the commitment of real estate development companies to keep pace with market fluctuations and confront any urgent change in a way that meets the needs of customers and their different budgets.
Here we have reached the conclusion of our article about the future of the real estate market in Dubai: the current situation and expectations for the year 2024. In which we reviewed the most important details about the analysis of the real estate market in Dubai and the factors affecting it, to be a detailed guide for everyone who wants to start the real estate investment experience in Dubai and achieve distinguished and continuous profits for the long term.
