Huge Demand and Effects of Inflation Sustain Robust Dubai Real Estate Market

Dubai is a thriving place for the property market. Its maintained popularity as a luxurious and profitable global destination attracts new residents, tourists, and both individual and group of foreign investors. This continuous increase of population promises a bright future for the property market in a city like Dubai. Properties like Binghatti Hills 3 is a good choice to buy a house in Dubai with attractive pricing. The first two phases of Binghatti Hills were sold in huge numbers.

Some professionals of Dubai Housing have expressed their excitement about a given market update that highlights the continued demand for different types of properties in Dubai. This demand is big enough to absorb the available supply of properties in the market. This current situation is expected to remain, especially when several off-plan properties will reach completion starting in the first quarter of 2025.

Some reports also show that Dubai’s market for rental properties, ready-to-buy houses, and off-plan properties remains healthy. Although the huge capital increase that has been seen for the past two years might not continue at the same speed but a fixed and continuous growth is expected for the coming years. The modern amenities and facilities that come with the properties are also the reason for the huge demand for these houses. 

Properties in Dubai, built at lower costs in the past, are likely to see a rise in the price by a good percentage. This is because the cost of making new properties in this city continues to rise which is driven by inflation pressures on building materials, logistics, and other expenses. New projects like Damac Riverside Community will also see some rise in the price because it will cost a lot to build these housing properties in a demanding location like Dubai Investment Park.

The report by a company provides Q1 data that shows there is growth for the past three years in the property market. The number of sales transactions in Q1 2024 touched 65,450, which is double the number in Q1 2023 which saw 32,725 and three times more than the number in Q1 2022 which had 21,817 transactions.

If we look at the amount, the sales transactions in the first quarter of 2024 amounted to AED 186 billion, which is a 24 percent increase from the same period in the year 2023  which was around AED 150 billion and a 107 percent increase from quarter one of 2022 that was AED 90 billion. This vast increase points to a robust and growing market of UAE. This can be seen from the sales of ELO built by Damac Properties which was sold out and ELO 2 and ELO 3 had to be launched for the buyers.

The location of Dubai is so good that people from other countries like to visit this city. Travelling to this city takes less time by air if you travel from Asia, Europe, and Africa which has a large part of the world’s population. The large ships can also easily travel through this city to other parts of the world, which means that Dubai is also a popular commercial destination in Middle East. Professionals from other countries come to Dubai for work and look for a good rental house.

The connectivity inside the city is also fantastic because of the smooth road connectivity and better public transportation services. Travelling long distances takes less time so we can say that every part of the city is good enough to live a comfortable life. People from other countries come here to live a luxurious lifestyle and to spend holidays with friends or family. The government also pays attention to the development of real estate and hospitality to attract more and more people to visit or stay in Dubai.  

Dubai’s real estate market continues to be a place of opportunity. Its popularity attracts a large number of investors, along with the rising costs of new properties. This makes sure that the market will remain attractive and stable. As new projects come to be delivered soon, the demand for properties in this luxurious city is expected to stay robust, promising fantastic growth for the coming years.