Dubai’s property market is on a constant uphill trajectory with no signs of slowing down. 2024 is poised to break sales records and see a significant increase in property values. Local real estate firms are attributing this surge to the high demand for property, specifically in the luxury sector, which is influencing prices not only for homes but for all aspects of life in the city. The United Arab Emirates is anticipated to maintain its status as the world’s top wealth magnet for the third consecutive year, further fueling the growth in Dubai’s property market.
The Concerns of Hussain Sajwani
Hussain Sajwani, the chairman of Dubai property giant Damac, has expressed mixed feelings about the current state of the city’s property market. While acknowledging the positive implications of increased demand and a thriving real estate sector, Sajwani has raised concerns about Dubai becoming an expensive city. He highlights the challenges faced by residents, such as limited school seats and rising business costs due to inflation. Sajwani emphasizes the need for the government to find solutions to manage the continuous influx of people into the city and mitigate the rising costs of living.
The latest figures from the Dubai property market paint a picture of robust demand and exponential growth. In July 2024, property sales soared to 49.6 billion dirhams, marking a significant 31.63% increase from the previous year. Elite Merit Real Estate reports that the first half of 2024 witnessed over 43,000 property transactions valued at approximately AED122.9 billion, indicating a remarkable 30% growth compared to the previous year. The rapid absorption of new inventory has been cited as one of the major drivers of this growth, with around 80% of units launched since 2022 already being sold.
Hussain Sajwani credits Dubai’s success in the property market to its transformation into a global city that attracts a diverse pool of talent and businesses. He highlights the city’s resilience during the Covid-19 pandemic, where Dubai’s proactive approach to encouraging tourism and facilitating residency for remote workers and entrepreneurs bolstered its popularity as a desirable place to live. Sajwani asserts that Dubai’s appeal extends beyond just wealthy individuals, with a growing influx of talented individuals from various backgrounds contributing to the city’s economic growth.
Reflecting on Dubai’s past boom-and-bust cycles, particularly during the 2008-2009 crisis period, Sajwani addresses concerns about the city’s stability in the current market scenario. He expresses confidence in the effectiveness of regulations implemented by the Dubai government post the financial crisis, emphasizing the stringent measures imposed on developers, customers, and zoning practices. Sajwani believes that these regulations have played a crucial role in maintaining stability and preventing a repeat of the previous market crash.
While Dubai’s property market continues to flourish with record sales and escalating property values, it is essential to address the underlying challenges of affordability and accessibility faced by residents. As the city evolves into a global hub for talent and business, striking a balance between growth and sustainability will be key to ensuring long-term prosperity in Dubai’s real estate sector.
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