Dubai’s property market is currently experiencing a significant boom, with sales figures and property values reaching record highs in 2024. The increasing demand for property, particularly in the luxury segment, has not only driven up home prices but has also impacted the cost of living in the city. Chairman of Dubai property giant Damac, Hussain Sajwani, expressed his concerns about the growing expensiveness of Dubai, attributing it to the influx of talented individuals and average people creating a surge in demand. This surge has led to challenges such as difficulty in securing school seats and businesses raising prices, ultimately leading to high inflation rates in the city.
Recent data from the Dubai property market indicates a substantial increase in demand. In July 2024, property sales amounted to 49.6 billion dirhams, marking a 31.63% rise from the same period in 2023, as reported by locally-based brokerage firm Elite Merit Real Estate. The first half of 2024 alone witnessed over 43,000 property transactions valued at approximately AED122.9 billion, reflecting a 30% surge from the previous year. The rapid absorption of new inventory is a significant contributing factor to this growth, with around 80% of units launched since 2022 already being sold.
Hussain Sajwani emphasized the strong demand for Dubai property, particularly from European investors, attributing it to the city’s appeal to individuals from various socio-economic backgrounds, from taxi drivers to entrepreneurs. The popularity of Dubai as a place to live was further amplified during the Covid-19 pandemic, as the emirate actively encouraged tourism and welcomed new residents through initiatives such as visas for remote workers and entrepreneurs. Sajwani highlighted Dubai’s transformation into a global city attracting diverse talents and businesses, positioning it for continued growth post-pandemic.
Stability in the Property Market
Despite Dubai’s history of experiencing boom-and-bust cycles, notably during the 2008-2009 crisis, Sajwani expressed confidence in the current stability of the market. He attributed this stability to the stringent regulations implemented by the Dubai government post-crisis, focusing on developers, customers, and zoning laws. These regulations have served as a protective barrier against unchecked market entry and project launches, ensuring a more sustainable growth trajectory for the Dubai property market.