According to Hussain Sajwani, CEO of DAMAC Properties, Dubai’s real estate market has just started entering its best phase. Whilst before the emirate was considered as a location for temporary stay, nowadays many individuals, including top billionaires from Europe, along with their families are choosing Dubai as a primary home. The success of the real estate sector is attributed to the efficient management of the COVID-19 crisis, with a shorter lockdown period than in Europe
Saleh Tabakh, CEO of the Dubai-based Al Andalusia Courtyard, said that current indicators demonstrate positive tendencies for the property sector in 2023. Aspects that play an important role in attracting new investors include safety, security and the stability of the UAE, as well as the ease of setting up and operating business and 100% commercial project ownership. According to the Reuters data published in September 2022, home prices in Dubai are expected to rise by 3% on average.
The short-term rental sector is highly likely to increase even more, thanks to new UAE visa policies implemented last year, including a 5-year multiple entry visa and an entry permit to visit relatives/friends, just to name a few. As a result, there is now a perfect opportunity to rent out your property as a holiday home, since many travelers prefer to stay in a comfortable private residence instead of a hotel room.
It is worth noting that Dubai ranked as the world’s most popular tourist destinations for 2 consecutive years (2022 and 2023) in Tripadvisor’s Travellers’ Choice Awards, as the tourism here has returned to pre-pandemic levels. That being said, the emirate recorded nearly 23.7 million arrivals in 2022, according to the Dubai Media Office, which is an 89% increase from 2021.
The luxury property market will also keep thriving, thanks to a rising demand from wealthy individuals, as mentioned earlier. In fact, according to the data provided by DXBinteract.com, in the first 15 days of 2023, a total of 45 properties valued at AED 15M (USD 4M) or more were sold in Dubai. Some of the largest transactions of the current year were recorded in One Canal, Jumeirah Gate, Emirates Living, Bvlgari Lighthouse Dubai and The Residence | Burj Khalifa.
n January 2023, Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, unveiled the Dubai Economic Agenda — D33, which aims to double the size of the emirate’s economy over the next 10 years. In line with this initiative, Dubai is set to enter the top 3 cities in the world for business and tourism, with astonishing economic targets of AED 31.9T (USD 8.7T). The government will also launch an array of innovative initiatives to bolster Dubai as the world’s top city to live and work in, which will have a positive influence on the local real estate sector, as well over the coming years.
To keep up with the ongoing demand, many developers have decided to increase investments in new quality projects. For instance, Al Habtoor Group will develop 3 mega-properties worth AED 9.5B (USD 2.6B) in Dubai in 2023. The first project will be located in Al Habtoor City, which will consist of residential towers; one of which will be the world’s largest, regarding size and number of apartments. The other 2 include a unique complex in Al Habtoor Grand Resort in JBR and the re-development of the existing Habtoor Tower in Dubai Marina. Another premium real estate giant; Samana Developers, is set to launch 12 new projects with about 2,400 units this year. The total value of its new developments amounts to AED 2.5B (USD 680M) and include 5-star hotels, as well as residential complexes
