DUBAI, United Arab Emirates — Dubai’s actual property scene reveals no indicators of cooling down as 2024 is about to be one other file 12 months for property gross sales and values, in line with native actual property companies.
Rising demand for property, particularly within the luxurious house, is driving up costs not just for housing however for all the pieces else within the metropolis – simply because the UAE is predicted to emerge as the biggest wealth magnet in the world for the third consecutive 12 months.
For Hussain Sajwani, chairman of Dubai property big Damac, which means each good and unhealthy information.
“What worries me a bit about Dubai is that this [it’s] changing into an costly metropolis, and I’ve mentioned it up to now that Dubai [is] it is going to be [an] pricey metropolis. As a result of each time there’s that a lot demand, and particularly when proficient individuals are available in, atypical individuals, they create extra demand,” Saiwani informed CNBC’s Dan Murphy from Riyadh on Tuesday.
“So right now it is exhausting to get a spot at school… and naturally enterprise will increase costs and inflation [is] might be excessive, so Dubai might be an costly metropolis,” the chairman mentioned. “And I hope so [the] the federal government discovered methods and means. And it isn’t simple to seek out methods and means when there’s a steady circulation of individuals to the town.”
The newest figures on the Dubai property market inform a narrative of rising demand. In July 2024, property gross sales reached 49.6 billion dirhams ($13.5 billion), a rise of 31.63 % over the identical interval in 2023, in line with native brokerage agency Elite Benefit Actual Property.
“Within the first half of 2024 alone, greater than 43,000 property transactions price roughly AED 122.9 billion occurred, marking a 30% enhance over the earlier 12 months,” the agency’s report, printed on September 10, mentioned, including that the expansion due partially to “speedy absorption of recent stock.” About 80% of the models launched since 2022 have already been offered, the report estimated.
Aerial view of cityscape and skyscraper at sundown in Dubai Marina.
Lu Shaozhi | Second | Getty Pictures
“The property market in Dubai is doing extraordinarily effectively and I believe we are going to proceed to do effectively as a result of the demand in Europe is unimaginable,” Sajwani mentioned. “Everyone desires to go to Dubai, from the taxi driver to the waiter to the businessman… Dubai is now attracting numerous not solely wealthy individuals but in addition very proficient individuals. And it is rising at a distinct stage than earlier than Covid.”
Damac’s founder famous how the Covid-19 interval elevated Dubai’s recognition as a spot to stay: whereas a lot of the world remained in isolation, the emirate promoted tourism and attracted new residents with the assistance of distant employee visas and entrepreneurship.
“Immediately, Dubai is a worldwide metropolis in each means and by attracting numerous expertise and numerous companies, we are going to proceed to develop,” Sajwani mentioned.
Dubai has skilled a risky boom-and-bust cycle up to now, most notably through the disaster interval of 2008-2009, when the emirate’s property market collapsed and lots of buyers needed to default on their money owed. Requested if he was frightened a couple of repeat of an identical cycle, Sajuani expressed confidence that the system is completely different now.
Requested if Dubai was extra steady now, Sajwani mentioned: “100%.”
“One of many major causes for that is the rules that the Dubai authorities put in place afterwards [the] The ’09 or ’08 crash had superb provisions. Very, very strict on builders, prospects and zoning,” he mentioned. “In order that regulation helps — not everyone can simply come and go into the market and simply begin a undertaking … There is a very strict belief cost, in order that prospects’ cash may be very protected and that makes the market very environment friendly.”
Correction: The title of this text has been up to date to mirror Hussain Sajwani’s title as chairman of Damac.
