Dubai real estate: Industry leaders talk growth, innovation, investment at the Arabian Business Leadership Summit 2024

Innovation in real estate

Josef Kleindienst, CEO of Kleindienst Group, addressed the need for innovation within the industry. “Our number one customer demographic are UAE nationals, followed by Saudi Arabia,” indicating a strong local and regional interest in their offerings.

Despite this robust demand, Kleindienst acknowledged that innovation within the real estate sector is often slow-paced. However, he shared a groundbreaking development for his company. “In May, we applied for a license for floating villas; it is the first that is registered in the land department,” he announced.

Alex Zagrebelny of R. Evolution echoed Kleindienst’s call for innovation, emphasising the necessity for rapid adaptation in a fast-changing world. “The problem with real estate is that it’s a five-year span but now that the world around is moving so fast, you always need to be innovative,” Zagrebelny remarked.

He urged his fellow developers to keep pace with global advancements. “I want to ask all other developers, if you are looking to the future, move fast,” he stressed, highlighting the importance of agility and forward-thinking in the industry.

Market trends and volatility

Ben Bandari of Ben & Core Real Estate LLC provided a detailed analysis of the current market dynamics, shedding light on the remarkable activity within Dubai’s real estate market. “The numbers don’t lie. There were 36,000 transactions in Q1 2024,” Bandari noted, illustrating the high volume of market transactions. He acknowledged the inherent volatility in the market, stating, “The market is volatile, goes up and down. We are having an upward trend right now.”

This upward trend, according to Bandari, is attracting global attention. “Investors and buyers are looking at Dubai from all over the world. We are getting buyers from places we haven’t seen before,” he shared, reflecting on the expanding geographical interest in Dubai real estate.

Bandari’s optimism about the market’s future is not only professional but also personal. “I believe in this market – both my son and daughter will have properties here,” he affirmed.

Economic growth and real estate impact

Atif Rahman of ORO24 brought a broader economic perspective to the discussion, emphasising the interconnectedness of real estate growth and overall economic development in Dubai. “The market has performed exceptionally well. It is going to continue going upwards.”

He noted Dubai’s evolution from an emerging to a developing economy, a transition that promises sustained growth but also requires cautious optimism. “Is it a holistic economic boom we’re experiencing? The answer is no,” Rahman cautioned, drawing a comparison to the 2008 financial crisis. “The 2008 was a market with broken limbs, this time there will be some bruises but it won’t be the same,” he explained, suggesting that while challenges remain, they are less severe than those faced during the previous downturn.

Rahman also emphasised the importance of shifting focus from merely real estate to broader economic growth. “The shift must move from overall real estate to economic growth of the country in general. Real estate impacts human life,” he pointed out. He advised investors to remain prudent, “Invest every penny in your pocket in Dubai real estate but be mindful,” underscoring the need for careful and strategic investment in the sector.

The panelists collectively underscored the critical need for innovation, rapid adaptation, and strategic investment to sustain the growth of Dubai’s real estate market.

The Arabian Business Leadership Summit is currently underway in Dubai with some of the most influential business leaders in the region in attendance including Ben Bandari, Josef Kleindienst, Khaled Nuseibeh and Vineet Budki.

The summit serves as a platform for leaders to exchange ideas, discuss obstacles, and explore possibilities for shaping the future of business in the Arab region.