Dubai has become the world’s real estate hub in recent years, with high returns on investment and a secure environment, which has become the most positively influential element in light of the escalation of geopolitical tensions globally and in light of the state of “uncertainty” surrounding the global economy, leading brokerage said.
Strong Growth and Record Sales
According to a statement by W Capital Real Estate Brokerage, Dubai’s real estate sector has sustained growth and record sales momentum over the past few years amid an exceptional demand exceeding expectations.
The report indicated that real estate investments in the emirate have become a preferred choice for many wealthy people globally, reflected in surging luxury real estate sales.
Security as a Key Factor
The study indicated that investors choose Dubai due to its security. At the same time, most capitals worldwide suffer from security disintegration, which is evident in the organization of major events and activities.
The information stressed that Dubai is an abundant environment for investment, thanks to the availability of many subsidizing factors locally and internationally, which has supported the position of the real estate market and inspired many international companies and trademarks to launch projects from there.
Upward Trajectory and Record Growth
“The real estate market in Dubai has taken an upward trajectory that exceeded all expectations since recovering from the COVID-19 pandemic,” said Walid Al Zarooni, W Capital CEO.
He mentioned that sales in the 55 months from January 2020 to July 2024 totaled Dh1.16 trillion, according to DLD data. Sales rose from Dh69.8 billion in 2020 to Dh149 billion in 2021, then Dh265.5 billion in 2022, and finally, Dh401 billion last year, reaching Dh283 billion in the first seven months of 2024.
Factors Contributing to Success
Al Zarooni emphasized that the record and subsequent growth show the high level of maturity reached by the Dubai real estate market, which is attributable to all contributing factors. These include the emirate’s security and safety, the quick recovery from the pandemic’s effects, and the recovery of the tourism and economic sectors.
Diverse International Demand
According to Al Zarooni, a prior study by W Capital evaluated a robust demand for Dubai real estate worldwide, with the largest concentration coming from Indians, Chinese, Lebanese, Canadians, French, Italians, Dutch, Pakistanis, and Turks. Americans, Saudis, Russians, Iranians, and Egyptians were on the list.
Also Read: How to Buy Property in Dubai Like a Pro in 2024
Favorable Economic Conditions and Government Initiatives
The CEO said that the real estate sector boom benefited from the UAE’s favorable economic conditions in general and Dubai in particular. That was encouraged by government steps aspiring to encourage business moves such as presenting residency visas, the appealing tax system for inducting and launching new businesses, and cultural multiplicity, with the hosting of about 200 nationalities worldwide.
Recent Performance and Record-Breaking Figures
Al Zarooni pointed out that real estate sales in Dubai from January to July grew by 30.3% to reach Dh283.11 billion, compared to Dh217.2 billion in the same period in 2023.
From the start of 2024 to the end of July, 123,250 transactions totaling Dh415.55 billion were made in the Dubai real estate market.
The sector also recorded its highest monthly performance ever in terms of sales during July, totaling Dh50.78 billion, a growth of 35%, compared to about Dh37.6 billion recorded in July 2023, exceeding the earlier record for a single month, November 2023, at Dh45.8 Bn.
