The Dubai real estate sector will see more $10m property sales, speedier blockchain property sales and an increased reliance on artificial intelligence to buy and sell homes next year, according to Off Market Listing (OML) forecasts.
The Dubai real estate firm has published a comprehensive forecast for the city real estate sector in 2024.
As the real estate landscape undergoes rapid transformations globally, the company predicts significant shifts and trends that will define Dubai’s property sector in the coming year.
Dubai 2024 real estate forecast
As well as looking ahead to changes in the residential real estate market, OML is predicting changes for office space in the city as businesses look to adapt to working culture in a post-pandemic world.
While digital real estate adoption will have a profound impact on the sector, sustainable property developments will also become more important.
Check out five forecasts for Dubai real estate in 2024.
Luxury property
According to recent reports, Dubai leads the way as the world’s busiest market for luxury homes. Sales for homes worth $10m or more reaching a record 277 in the first nine months of 2023, totalling $4.91bn of transactions.
This trend is expected to continue, as the influx of high-net-worth individuals seeking exclusive real estate experiences continues.
Real estate digitisation
The UAE’s pursuit of digitisation is poised to revolutionise real estate transactions.
Dubai has been at the forefront of digital adoption and set historic precedence by being among the first to embrace cryptocurrency as a means of payment for purchasing real estate.
This move made Dubai one of the pioneers in the world to accept digital currencies for property investments.
OML foresees blockchain technology playing a pivotal role in property transactions, promising heightened speed, security and global accessibility, reinforcing Dubai’s reputation for efficiency and business acumen.
Rise of AI and proptech
While the current application of artificial intelligence (AI) within the UAE’s real estate market is relatively new, it already permeates property listings.
OML envisions this role expanding quite rapidly, where AI will expedite the search for tailored developments and properties, reshaping the property search experience profoundly.
The latest buzz word is “Proptech” or property technology, predicted to be a disruptive power in the real estate industry, impacting the way people buy, sell, and offer property management experiences to support property transaction and valuation procedures.
The company anticipates a technology-driven revolution that will redefine how buyers engage with the market – underscored by the UAE’s National Artificial Intelligence Strategy 2031, which aims at positioning the UAE as a global leader in artificial intelligence by 2031.
Sustainable property development in the UAE
Amid the urgency emphasised by the COP 28 summit on climate action, the real estate sector’s responsibility in curbing carbon emissions gains heightened significance.
Accounting for nearly 40 per cent of global carbon dioxide emissions, the real estate industry is poised for a transformative shift towards sustainability, said OML.
The real estate firm foresees a notable upsurge in sustainable living initiatives within the region. This momentum aligns with the UAE’s stance on green property development, which has garnered international attention due to significant government investments and groundbreaking advancements in design and construction methods rooted in the Sustainable Development Goals (SDGs).
The UAE’s commitment to achieving Net Zero by 2050, positioning the Emirates as the first in the Middle East and North Africa (MENA) region to pursue this milestone, stands as a beacon of sustainability.
This strategic goal, coupled with Dubai’s 2040 Urban Master Plan, positions the emirate as a premier destination for investors seeking both business opportunities and a sustainable lifestyle.
This alignment of global business aspirations with sustainable living has attracted a wave of investors looking to invest in future-centric projects.
Post-pandemic office space
The pandemic catalysed a re-evaluation of work dynamics, prompting a seismic shift in commercial real estate.
OML observes developers adapting to the remote work revolution by reshaping office spaces and seeing a decrease in demand for traditional office space.
Moreover, expectations now include more homely office environments offering hotel-style services, enticing tenants back into a revamped work setting that caters to the evolving needs of today’s workforce.
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