Dubai is all set to break all previous records in terms of the total value of transactions in a year. What are the major reasons for this exceptional growth, according to you?
Indeed, there’s been a remarkable uptick in Dubai’s residential prices, soaring by 19.6% in the year up to September 2023. This can be attributed to Dubai’s swift and efficient handling of the pandemic, coupled with its pro-business and cosmopolitan lifestyle. It has cemented its position as a safe haven for investors and talent, which has resulted in a surge in demand for prime real estate. And then, Expo 2020 Dubai! We dazzled the world with our innovation, our infrastructure, and our sheer audacity! It solidified our position as a global hub, a magnet for business, tourism, and, of course, investment. That buzz? It’s still echoing and has translated into continued interest in the property market. Facilitating this growth are the progressive policies implemented by the UAE government, such as the Golden Visa program and attractive investment incentives. These have spurred foreign direct investment, including a significant portion of the real estate sector.
Beyond governmental initiatives, Dubai’s economy is no longer solely reliant on oil. Its focus on sectors like tourism, finance, and technology has created a robust and stable environment, attracting both businesses and individuals seeking a secure future. Finally, there’s the undeniable appeal of Dubai’s real estate itself. For example, in the first nine months of 2023 alone, the average price for an apartment and villa increased by 19.7% and 18.9%, respectively, while the average rent for Grade A, B, and C rose by 14.4%, 20.1%, and a jaw-dropping 30%. This is primarily due to a supply and demand imbalance that has turned the city into an investor’s paradise.
The year 2022 was great, and 2023 so far has been nothing but magical. What’s your prediction for 2024? How will the Dubai real estate market fare?
While the market is unlikely to replicate its 2022 or 2023 performance, I expect continued growth in 2024 despite global economic uncertainties and rising interest rates. However, I remain optimistic about the Dubai market for several reasons. Strong fundamentals continue to underpin its current boom, including a robust economy, an attractive investment climate, and ongoing infrastructure development. These factors collectively contribute to a resilient foundation that suggests sustained growth and stability in the real estate market. Moreover, the market is undergoing a positive shift towards diversification, moving beyond the exclusive focus on luxury segments. There is now an increased emphasis on affordable and mid-range housing, catering to a broader range of buyers. This strategic move not only reflects market adaptability but also strengthens the long-term sustainability of the real estate sector in Dubai. The expanding diversity in housing options enhances the market’s resilience against potential fluctuations. Additionally, the government’s unwavering commitment to supporting the real estate sector provides a further basis for optimism.
What are the next steps your company is planning to take in 2024 to propel growth?
To maintain our leadership position in 2024, we plan to expand our reach by actively exploring new markets within the UAE and beyond to cater to the swiftly evolving needs of our clients.
In addition to geographical expansion, our strategy involves a keen focus on leveraging data analytics and AI to refine our market insights and provide clients with more personalized and data-driven services. Furthermore, we’ll focus on emerging sectors like off-plan developments, sustainability-focused projects, and vacation homes to cater to diverse client needs. Building on this, we’ll collaborate with key players in the industry, including developers, financial institutions, and technology providers, to offer comprehensive solutions to our clients. At the same time, we’ll continue to invest in attracting and training the best real estate professionals in the region to provide exceptional service and expert guidance to our clients. By staying agile, innovative, and client-centric, One Broker Group is confident of navigating the evolving market landscape in 2024 and beyond.