Dubai’s property market is currently experiencing an unprecedented boom, with 2024 poised to be a record year in terms of sales figures and property values. The demand for property, especially in the luxury segment, is driving prices up across the board in the city. Local real estate firms are reporting a surge in property sales, with figures reaching new heights each passing month. However, the rapid expansion of the property market has raised concerns among industry experts and stakeholders, including Hussain Sajwani, chairman of Dubai property giant Damac.
Hussain Sajwani has expressed reservations about the soaring prices in Dubai, labeling it as an “expensive city” driven by high demand and an influx of people from diverse backgrounds. He highlights the challenges faced by residents, such as difficulty in securing school admissions and rising inflation. Sajwani acknowledges the government’s role in addressing these issues but emphasizes the complexity of managing price hikes and inflation in a continuously growing city like Dubai.
The latest property market data from Dubai paints a picture of burgeoning demand and rapid absorption of new inventory. In July 2024 alone, property sales soared to 49.6 billion dirhams, marking a significant increase from the same period in the previous year. Elite Merit Real Estate, a locally-based brokerage firm, reported a 31.63% surge in property sales, attributing it to the rapid absorption of new inventory. Over 43,000 property transactions valued at approximately AED122.9 billion were recorded in the first half of 2024, indicating a robust market performance.
Hussain Sajwani emphasizes Dubai’s growing popularity as a global city, attracting talent and investments from around the world. He credits the emirate’s response to the Covid-19 pandemic, which included initiatives to encourage tourism, attract new residents, and support entrepreneurship. The availability of visas for remote workers and a conducive business environment have positioned Dubai as a preferred destination for individuals and businesses looking to thrive in a post-pandemic world. Sajwani believes that Dubai’s appeal extends beyond just wealthy individuals, with a diverse range of talented people choosing to make the city their home.
Dubai has had a tumultuous history with property market cycles, most notably during the 2008-2009 crisis period. However, Hussain Sajwani expresses confidence in the current regulatory framework established by the Dubai government to ensure stability in the real estate sector. He commends the government’s strict regulations on developers, customers, and zoning, highlighting the effectiveness of these measures in maintaining market integrity. Sajwani believes that the regulatory environment in Dubai has evolved significantly since the previous crisis, making the city more resilient to potential market downturns.
Dubai’s property market presents a tale of two extremes – remarkable growth and escalating concerns. While the surge in property sales and values signifies a thriving market, the accompanying challenges of rising prices, inflation, and regulatory oversight highlight the need for sustainable growth strategies. As Dubai continues to attract global attention and investment, it must navigate the fine line between prosperity and potential pitfalls to ensure long-term stability and prosperity for residents and investors alike.