Dubai’s Property Market Soars to New Heights Amid Rising Demand and Prices

Dubai’s property market is experiencing another record-breaking year in 2024, with sales and property values surging, according to local real estate firms. The city’s booming demand, particularly in the luxury segment, is driving up prices across the board, as the UAE is on track to become the world’s top destination for wealth for the third year running.

Hussain Sajwani, Chairman of Damac, one of Dubai’s largest property developers, shared mixed feelings about the rapid growth. He acknowledged the excitement but raised concerns about the city becoming increasingly expensive.

Sajwani pointed out that the influx of talent and residents, driven by high demand, is pushing up the cost of living. “Today, getting a seat in a school is tough, and naturally, business will respond by raising prices. Inflation will be high, and Dubai will become more costly,” he remarked, expressing hope that the government would find ways to manage this growth, though he admitted it would be challenging with the continuous flow of people into the city.

The numbers reflect the surge in demand. In July 2024, property sales reached $13.5 billion, a significant 31.63% increase from the same period in 2023, according to Elite Merit Real Estate. The first half of 2024 saw over 43,000 property transactions valued at approximately AED 122.9 billion, marking a 30% rise year-on-year. The report noted that around 80% of units launched since 2022 have already been sold, indicating the swift absorption of new inventory.

Sajwani remains optimistic about the future of Dubai’s real estate market. He highlighted that demand from Europe is particularly strong, with people from all walks of life—from taxi drivers to wealthy businessmen—flocking to the emirate. “Dubai is now attracting not only the wealthy but also a lot of talented individuals, growing on a new level compared to pre-Covid,” he said.

The global pandemic played a pivotal role in Dubai’s recent growth, according to Sajwani. While much of the world was in lockdown, Dubai stayed open, promoting tourism and offering incentives like visas for remote workers, which helped fuel its rise as a global destination for residents and businesses alike.

As the city continues to attract talent and investment, some may wonder if Dubai is heading for another boom-and-bust cycle like the one it experienced in 2008-2009, when the property market collapsed. Sajwani, however, expressed confidence that the situation is different now.

He emphasized that regulatory reforms implemented after the last crash have stabilized the market. “The government’s regulations have been crucial—strict rules on developers, customers, and zoning have created a more secure environment,” he explained. “With strict escrow systems protecting customer funds, the market is much more efficient and stable now.”

Sajwani firmly believes that Dubai’s property market is more resilient than ever, assuring that the city’s growth is sustainable.

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