Oliver Taheri-Mohsen, Co-Founder & Director, Middle East shares his views on the Dubai Real Estate Outlook 2024.
As we embark on another year of potential and prosperity, the Dubai real estate market continues to be a beacon of robust growth and opportunity.
Reflecting on the past year, 2023 has been monumental, marking record-breaking achievements in the sector with the highest number of transactions, the most valuable transactions, and the highest average prices to date.
Even when adjusted for inflation, we find ourselves 10-15% below the peak prices of 2014—yet, we stand on much firmer economic ground.
So, the pressing question is, can this upward trajectory continue? The indicators all point to ‘yes’.
Dubai is still considered one of the best-valued major cities globally, as per authorities like CBS. This is noteworthy considering that approximately 150,000 new units are forecasted to be delivered in the next three years. Such a substantial influx could ordinarily overwhelm a market, but not in Dubai. Here, population growth keeps pace with demand, ensuring that every new property finds its eager owner.
The astuteness of the Dubai Land Department (DLD) in managing licenses and approvals cannot be overstated. Their strategic release of new developments ensures steady market growth, preventing the pitfalls of oversupply and maintaining positive returns for investors.
What makes Dubai good for property investment in 2024?
Is Dubai a good property investment option in 2024? Several factors warrant attention for those considering Dubai as their investment horizon:
- Global Economic Climate: With high interest rates squeezing investors worldwide, the Dubai market has become increasingly attractive. Its higher yields and profitable investment opportunities are a beacon to those looking for stable and lucrative options.
- Workforce Availability: The staggered approach to development is partly due to the practical aspect of manpower—ensuring there is enough workforce to bring these ambitious projects to life.
- Finance and Interest Rates: Currently, only about 30% of properties in Dubai carry mortgages, which is remarkably low compared to other cities. This shields the market from interest rate fluctuations—a resilience we have observed over the past year. Banks are increasingly willing to offer lending facilities with lower deposit requirements, which opens the door for first-time buyers and sustains market demand.
- Payment Plans: Developers are now more inclined to offer extended payment plans, reducing the barriers to property ownership.
Influx of HNWI
Moreover, the influx of high net worth individuals (HNWIs) into Dubai is staggering. Over 68,000 millionaires, 200 centimillionaires, and 15 billionaires call Dubai home, with more than 4,500 HNWIs having relocated here in 2023 alone.
Their presence is not merely a number—it’s a significant economic force. These affluent individuals actively contribute to the economy through spending in the local markets, adding to the city’s vibrancy and financial health. This activity is a key reason why S&P Global projects a 2-3% annual economic growth for Dubai over the next two years, even as other economies stagnate or recess.
Security, both personal and financial, is a cornerstone of Dubai’s appeal. The city is renowned for its safety, and the real estate transaction process, overseen by the Dubai Land Department and Real Estate Regulatory Authority
(RERA), is lauded for its security and efficiency. The rules are crystal clear, the registration process is swift, and buying or selling property in Dubai is remarkably straightforward compared to other major cities.
So, is 2024 a good time to invest in Dubai’s real estate market?
Based on data and trends, reviewing the Dubai Real Estate Outlook 2024, my professional opinion is a resounding yes. The unique combination of market stability, economic growth, regulatory efficiency, and high safety standards make Dubai a standout choice for investors.
Should you be interested in exploring the market further or are considering an investment in Dubai’s promising real estate landscape, I invite you to reach out. Let’s discuss how you can be a part of this thriving market.
Invest in Dubai’s future today. Contact Thirlmere Deacon for insights and opportunities.
Dubai Real Estate Investment Guide