Real Estate Growth in Dubai
Real estate in Dubai is hot property. Right now, it feels like the world is flocking to the city, looking to get their hands on a piece of the property market. There’s plenty to go around, and that’s certainly showing when analysing recent demand.
The growth of real estate in Dubai over the past 18 months has been truly exponential. In 2022, sales values increased by 178% year on year – and this trend has continued to grow into 2023. The same trend is true for sales volumes too, with over 7,000 transactions taking place so far this year. Business Bay, Jumeirah Village Circle, Town Square & Palm Jumeirah have proved popular within these sales.
There has already been a total of +$15 billion worth of real estate sales in 2023 alone, which is a truly staggering and unprecedented amount. There are many factors at play contributing to this; some fundamental, and some reactionary.
Trends And Factors Driving Real Estate Market Growth
While there has always been an underlying demand for real estate in Dubai, there has been a huge spike recently owing to both external and internal factors in the UAE. Three notable reasons behind the surge, we believe, are:
- Liberal Visa policies – Dubai has always very much been open for business. As a nation, it has purposely positioned itself to be welcoming to eligible investment from anywhere in the world. This makes the country as a whole a very attractive proposition for potential investors.
- No ownership sanctions – this is the elephant in the room that is clear indicator of the surge in growth for the real estate market. The ongoing war between Ukraine and Russia saw the introduction of very strict sanctions against the movement of Russian wealth – however, the same could not be said of the UAE. The country has long been popular with Russian citizens, and now Russians facing the prospect of frozen assets have certainly driven the market by choosing Dubai as a safe haven for their wealth.
- Global appeal – it’s not simply Russian investment driving the market in Dubai. The Gulf state has been a popular attraction for expatriates from across the world, particularly western Europe. The lifting of protocols and quarantine measures over recent months has allowed more freedom of movement between the two areas, and this has certainly spiked demand for living in the city.
What the Real Estate boom means for your business
It’s not so clear at the moment whether the real estate market boom will convert to more permanent residents in the city, or whether there is a bubble that is soon to burst. However, there is certainly downward pressure on ordinary citizens, as rent has started to rise exponentially in the midst of driven demand.
As a business owner, your industry will determine the extent to which you are exposed to the real estate boom. The rise in demand has certainly created a multitude of opportunities for those looking to pivot into the real estate market, and potential commissions available to those in the right place at the right time are there for the taking.
The reality for most entrepreneurs, however, will be that the increase in living cost that is underpinned by this rise in real estate values will be closer to home. Be mindful of the positions your employees may find themselves in, and be open to conversations with your team about identifying efficiencies and making everyone feel the pinch a little bit less. If you’re not operating specifically in the real estate market, you’ll be coping with the ripple effects that the rest of the market is coping with too – be mindful of that as the market continues to swell.
Real Estate and Business Incorporation Zone
From opening real estate enterprises to providing honest advice about the market, we are on hand to support you with any real estate questions or business opportunities that may be on your mind. Reach out to the team at [email protected], or call 800 BIZ, and start a conversation with the team.