UAE’s tourism sector is projected to account for 12% of GDP in 2024. What kind of positive effect will this have on Dubai real estate?
With a noticeable uptick in GDP and anticipated future growth, we can expect heightened demand for both residential and commercial properties. The focus on Gulf-wide collaboration and infrastructure enhancements promises improved connectivity, drawing more visitors and driving demand for accommodation and commercial spaces. The promising momentum suggests that property values and rental incomes in Dubai could see increases, providing attractive opportunities for investors and end users.
How do you expect the summer to fare for the market? Do you expect a slowdown? Why?
While the summer season typically sees a slowdown in activity, the Dubai real estate market’s resilience and adaptability, coupled with various ongoing initiatives and projects, could mitigate the extent of any potential slowdown. It’s important to consider other factors that could influence the market dynamics during the summer. For instance, government initiatives, economic policies, and geopolitical developments can also play significant roles in shaping market sentiment and activity levels. The current factors may continue to attract investor interest and support market stability.
UAE’s tourism sector is projected to account for 12% of GDP in 2024. What kind of positive effect will this have on Dubai real estate?
The tourism sector is one of the most important tributaries supporting the growth of the local real estate sector, especially in Dubai. Its impact lies in the expansion of hotel real estate investments, as the number of hotel rooms in Dubai during the current year increased by 2% and the hotel capacity reached 152,162 rooms at the end of March, compared to 148,877 rooms in the same period of 2023, while the number of hotel establishments reached 832 establishments compared to 814 establishments in the same period last year.
The tourism sector also contributes to raising the demand for the housing market and short-term rentals, and here it can be said that holiday homes are types of residential real estate benefiting from the movement of tourists.
How do you expect the summer to fare for the market? Do you expect a slowdown? Why?
It is expected that the tourist momentum will continue during the summer period and the demand for real estate will continue based on the current data of the market, as about 130 new real estate projects have been launched in the market since the beginning of the year and the value of real estate sales increased to 108.7 billion dirhams during the first quarter of this year compared to 89 billion dirhams in the first quarter of last year. This confirms a continuous and strong growth in real estate sales in Dubai during the summer period and throughout the current year.
UAE’s tourism sector is projected to account for 12% of GDP in 2024. What kind of positive effect will this have on Dubai real estate?
How do you expect the summer to fare for the market? Do you expect a slowdown? Why?
Summer will be fair for the market. We are not expecting any slowdown. Rather, smart investors will be waiting to grab any opportunity that comes their way (which are rare currently), as starting Q4, the market is expected to see higher demand.
UAE’s tourism sector is projected to account for 12% of GDP in 2024. What kind of positive effect will this have on Dubai real estate?
How do you expect the summer to fare for the market? Do you expect a slowdown? Why?
We are not seeing any slow down signs this summer. Market is mixed with a host of secondary buyers who are moving here and overseas and local investors who are partaking in the growth being witnessed in the off -plan market as Dubai begins its third cycle of off-plan master community launches from leading developers.
UAE’s tourism sector is projected to account for 12% of GDP in 2024. What kind of positive effect will this have on Dubai real estate?
How do you expect the summer to fare for the market? Do you expect a slowdown? Why?
Considering the fact that Dubai has become one of the world’s top destinations to live, work and play, there is very little chance that the local real estate market will slow down any time soon. As for the summer months in particular, developers and private sellers typically offer special terms and conditions for the low season, including favorable payment plans and price cuts to combat any potential lull in sales and to attract a greater number of interested buyers and investors.
