Prices of $10 million-plus homes in Dubai grew at one of the fastest rates globally in the first quarter of 2024, as overseas demand for prime residences in the emirate continues unabated, industry insiders said.
A long list of advantages including favourable mortgage rates, government policies that encourage long-term residency and global connectivity are cited as the driving factors for the demand from overseas investors in the city’s residential real estate.
“The [emirate’s] appeal for multi-million residences lies not only in the luxurious lifestyle and high-quality properties but also in the favourable tax environment and the ease of doing business in the UAE,” Sachin Kumar Singh, Business Head and Managing Partner at Foremen Fiefdom, told Arabian Business.
“Additionally, Dubai’s – as also the UAE’s – strategic location, acting as a bridge between East and West, makes it an attractive investment destination for those looking to diversify their property portfolios,” he said.
Senior executives at some of the other leading real estate consultancies and proptechs also concurred with Singh’s views and said these factors have helped not only sustain but triggering another round of spike in wealthy overseas buyers’ interest in Dubai’ property market in the initial months of this year.
Dubai infrastructure boom drives investment
Industry insiders said Dubai’s ongoing infrastructure development and other strategic initiatives are also acting as major factors for market savvy international investors to acquire high-value real estate assets, especially in the luxury and high-end residential segment, looking to maximise return on investments.
Sing said fast paced developments in Dubai’s infrastructure sector are particularly seen as a promising opportunity for investing in the city’s real estate market in 2024.
The upcoming opening of the new Al Maktoum Airport is expected to boost Dubai’s aviation capacity, further solidifying its status as a global aviation hub.
Dubai’s Roads and Transport Authority (RTA) is currently executing a significant project to modernise the emirate’s transportation network, which, among other things, include the construction of 762 new public bus stops across Dubai.
The initiative is part of the authority’s broader efforts to improve commuting experiences for residents and visitors, reflecting Dubai’s commitment to enhance the city’s public transportation infrastructure.
Dubai’s expansion of its metro network with the introduction of the new Metro Blue Line is also set to enhance connectivity and alleviate traffic congestion, bolstering the city’s appeal as a modern metropolis.
“All these [infrastructure developments] are leading to further escalation in demand for residential properties, propelling property prices and return on investments,” a top executive at a Dubai-based proptech said.
Properties in proximity to new transportation hubs to see increases demand, price appreciation
Industry experts said the new breed of investors, especially overseas investors, should evaluate properties in proximity to these new transportation hubs for investments, as they are likely to experience increased demand and appreciation in value.
The Foremen Fiefdom senior executive said understanding the evolving demographics and preferences of residents, including those from Indian and British background, can also provide insights into potential investment opportunities in emerging locations and community-centric areas.
“Moreover, keeping abreast of regulatory changes, such as the introduction of long-term Indian tourist visas, can help investors anticipate shifts in demand and tailor their investment strategies accordingly,” he said.
“Overall, investing in Dubai’’ real estate market in 2024 requires a holistic approach that considers the city’s infrastructure development, demographic trends, and regulatory environment to capitalise on its growth potential,” Singh said.
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