Dubai’s real estate market is poised for growth in the third quarter

What factors drive Dubai’s real estate market?

Dubai’s real estate market is poised for growth in the third quarter as two key factors come into play: the availability of financing and the steady rise in population. These factors have a significant impact on property prices, attracting potential buyers and fueling demand in the market.

In the current market climate, the accessibility of financing takes centre stage, surpassing its usual importance. As rental prices surge, many tenants are now considering homeownership as a viable option. The global increase in interest rates has affected real estate markets worldwide, including Dubai. However, the city has been relatively insulated from these effects due to its political stability and government regulations. These factors instil confidence in prospective investors and buyers, ensuring a steady flow of interest in the Dubai real estate market. This stability comes as no surprise, given that Dubai’s economy relies heavily on tourism and real estate, making the ruling families’ business and political policies key drivers of confidence for both new and existing buyers.

Another significant factor driving the market is population growth. Dubai has witnessed a consistent increase in its population year after year, directly impacting supply and demand dynamics. The Dubai Statistics Center reports a population of 3,604,030 as of July 2023, marking a rise of 88,766 individuals in the past 12 months alone. This population surge has driven up demand for properties, resulting in a natural increase in prices for available properties. Acknowledging this trend Dubai has unveiled plans to expand public beaches by 40 per cent and dedicate 60 per cent of the city’s land to nature reserves. These measures aim to ensure the sustainability of Dubai as the leading emirate and accommodate the ever-growing population influx through broader infrastructure growth plans.

Dubai’s attraction to international companies further bolsters the real estate market. Its prime location provides access to emerging markets in the Middle East and Asia, coupled with world-renowned infrastructure and favourable tax policies. As a result, demand for both residential and commercial properties continues to rise, fueled by the influx of international companies seeking to establish their presence in the region.

With the combination of accessible financing options and a growing population, Dubai’s real estate market remains robust and poised for further expansion in the third quarter. The city’s unique blend of economic stability, population growth, and international appeal solidifies its status as a vibrant and thriving real estate destination.

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Muhammad Khan is sales consultant at Betterhomes.