Dubai’s rising population set to spur property market growth

The rising population is contributing to the launch of new projects and increased supply of residential units in Dubai

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The emirate is also witnessing infrastructure development on a larger scale to accommodate the rising population. — Supplied photo
by

A Staff Reporter

Published: Tue 31 Jan 2023, 4:18 PM

The population in Dubai officially hit the 3.55 million mark in 2022, and with more expatriates making the emirate their second home, it continues to grow at a rapid pace.

To cater to this rising population, several new residential developments by renowned developers have been launched across the emirate. These include Dubai Ritz-Carlton Residences, Mama Residences Dubai, Safa One and Safa Two Towers, Cavalli Couture, and a new $5.4 billion community by Azizi Developments, among many others.

“More projects are in the pipeline, ready to be launched. This has presented foreign investors to venture into the market and benefit from the ever-growing Dubai real estate,” according to the Zoom Property Insights.

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Besides real estate development, the emirate is also witnessing infrastructure development on a larger scale to accommodate the rising population.

Speaking about the impact of the rising population on the Dubai property market, Ata Shobeiry, CEO of Zoom Property, said an upscale lifestyle, safety, security, and abundant opportunities to grow as a professional or entrepreneur are just a few of the reasons why Dubai is welcoming more and more expats every year.

"The latest visa reforms have also proven to be the cherry on the cake since they have allowed foreign investors to enjoy additional perks when buying property in Dubai. All these factors continue to positively impact the property market,” Shobeiry said.

Growth in Dubai real estate

Amidst the rising population, the Dubai property market also continues its growth. According to the Zoom Property Insights, the annual transactions, for the first time, crossed the half-a-trillion dirhams mark in the preceding year. After a whopping 76.5 per cent increase compared to 2021, the total value of transactions in 2022 reached Dh528 billion.

With more expats willing to make Dubai their second home, the rental market has also witnessed increased traction as the demand has surged. The average rent witnessed an increase of nearly 27 per cent last year, with villas and apartments recording a growth of 27.1 per cent and 24.9 per cent, respectively.

With rising demand due to the increase in population, these figures are expected to increase further in 2023, according to the Zoom Property Insights.

“Dubai is all set to attract more investors, entrepreneurs, job-seekers, and those seeking an upscale lifestyle in 2023. This will ultimately lead to growth in various sectors, including real estate, which is already witnessing a high”, Shobeiry concluded.

KEY TAKEAWAYS

• The population in Dubai hit the 3.55 million mark in 2022

• To cater to the growing population, many developers have launched new residential developments across Dubai

• The yearly transactions crossed the half-a-trillion dirhams mark for the first time in 2022 after a 76.5 per cent increase

• The rental market also witnessed a boom, as the average rent climbed up by nearly 27 per cent

— business@khaleejtimes.com

A Staff Reporter

Published: Tue 31 Jan 2023, 4:18 PM

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