Dubai real estate to see steady growth as more serious buyers invest in local markets

Dubai's real estate market has seen three cycles of growth so far. But it saw two boom-bust cycles – first during the 2008 global financial when the market crashed for the first time and again during the Covid-19 pandemic.

Following the three-and-a-half-year rally, industry players are confident that the market will not bust but see a slower and steady growth. This is because the industry now has more end-users and serious investors who are investing in the local market.

As the third growth cycle comes to an end, experts are confident that there will be no boom-bust again – thanks to key initiatives such as Escrow account, inflow of millionaires and end-users that have played a key role in bringing stability in the market.

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Experts in the industry say that property market has moved beyond the boom-bust cycles as it has now become a more mature and regulated sector.

“Dubai's real estate market has significantly evolved over the years, transitioning from the boom-bust cycles of the past to a more stabilised and sustainable growth trajectory. This maturity is driven by several factors, including implementation of stringent regulatory frameworks, enhanced transparency, and a strategic focus on long-term economic diversification,” said Hassan Hijazi, group CFO of Amwaj Development.

He also added that Dubai's appeal to a diverse range of investors has broadened. According to him, high-net-worth individuals, institutional investors, and expats alike are drawn to the city's world-class infrastructure, strategic geographic location, and innovative developments.

"The Expo 2020 legacy and various government initiatives, such as the Golden Visa programme, have also played a vital role in attracting and retaining investors, reinforcing Dubai's position as a global investment hub,” noted Hijazi.

Not artificial or a balloon

Imran Farooq, CEO of Samana Developers, said over the last five decades, Dubai has built its economic infrastructure and multi-national society so strong that it would be inaccurate to say that the city’s rise is “artificial or a balloon”.

“The city stands strong and tall on its foundations. Dubai has shown it to the world by successfully organising global events such as Dubai Expo 2020, UAE COP28, and its exemplary handling of the Covid-19 pandemic. It only makes sense that Dubai's real estate sector has matured enough and moved beyond the boom-and-bust cycle,” said Farooq.

Yogesh Bulchandani, founder and CEO of Sunrise Capital, said it’s clear to anyone who has seen the ups and downs of the sector that Dubai’s real estate market has shown exceptional resilience, defying predictions of a slowdown.

“While global property markets stutter, prices in Dubai are continuing to rise, signalling a break from the boom-and-bust cycles. The market’s strength is bolstered by buyers purchasing for occupancy, indicating the previously transient nature of Dubai is fading. Demand remains strong from Europe (and the UK), India, and South Asia, with an influx of wealthy investors and foreign buyers, leading to a more stable and mature real estate landscape in Dubai,” he underlined.

No drop in prices

Samana Developers’s CEO said he doesn’t see Dubai property prices dropping over the next five years because the returns it gives to investors are very attractive.

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