Dubai real estate prices are “reasonable” compared to international markets, Binghatti chief executive officer Muhammad Binghatti told Arabian Business.
“If you compare real estate prices in Dubai to that of Hong Kong, Miami, London, and all the notable international markets around the world, Dubai indeed, in my opinion, is a very good deal.”
Binghatti’s statement comes after seeing many positive strides in the real estate market ever since the pandemic and he believes there is no bubble in the market.
“I do not think there is a bubble for many reasons. One, is the population growth we have seen in the past two years, post pandemic – it is very organic,” he said, adding that many from the world over are choosing Dubai as a permanent destination to live and work in, compared to the past, when Dubai was only considered as a tourist destination to many.
The world is choosing Dubai
“People are coming to Dubai to live in, and establish themselves in the emirate. I think that lends itself to Dubai’s competitiveness from an economic perspective,” he explained.
Binghatti added that all of these successes were possible solely because of the visionary leadership of the UAE.
“I think the leadership of Dubai and the UAE were very prudent and very capable – perhaps much more capable than many other parts of the world in dealing with crisis,” he said.
Binghatti said that along with dealing with the pandemic, the emirate positioned itself as a safe haven for many across the world through its safety protocols, government initiatives, and majorly its Golden Visa initiatives.
“We definitely have more people living in Dubai today. So, we have seen the Golden Visa initiative, almost every single executive that works with me today has a Golden Visa, because they know that they are here for good, permanently,” he said, adding this has also pushed the demand for people to buy property rather than just renting.
Dubai economy ‘a very stable one’ compared to global economies
Binghatti also explained that wealth migration has also played a key role in boosting the Dubai real estate market, especially as the emirate is a highly secure city, with a “very clear legislation” that protects investor rights.
“We are blessed with very high security here, and we are blessed with very clear legislation that protects the rights of the investors. And I think we see that the emirate’s economy is a very stable one. Moreover, the yields are very solid – almost every investor I know who has invested in Dubai is making almost a 10 percent yield when it comes to rental properties.
“When it comes to capital gains, the sky’s the limit, people I know have made 20 percent to 50 percent Capital Gain on their investment,” he said.
Echoing the same sentiment, Bugatti Rimac boss Mate Rimac also said that looking at their customer base, many are relocating to the emirate – and this shift “definitely proves to me that this is not a bubble,” he said.
“People are not buying real estate speculatively and are not coming here to buy property just to flip it or simply make an investment. People are actually coming here to settle down with their children – especially because Dubai provides everyone with everything they need around. And that is why I feel that the growth in the market is going to continue and that it is healthy,” Rimac said.
Binghatti has partnered with Bugatti Rimac to create the world’s first-ever Bugatti Residences, to be located near Burj Khalifa Boulevard. The “megaproject,” as Binghatti termed it, is scheduled for completion in the next three years.
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