DUBAI, United Arab Emirates — Dubai’s real estate scene shows no signs of slowing down as 2024 is on track to be another record year in terms of sales figures and property values, according to local real estate firms.
Rising demand for property, especially in the luxury space, is boosting prices not just for homes, but for everything else in the city – as the UAE is set to emerge as the world’s top wealth magnet for the third consecutive year.
For Hussain Sajwani, the chairman of Dubai giant Damac, this means both good and bad news.
“What concerns me a bit about Dubai is this [it’s] it’s becoming an expensive city, and I’ve said it before, that Dubai [is] it’s going to be [an] expensive city. Because whenever there’s so much demand, and especially when talented people come in, average people, they create more demand,” Sajwani told CNBC’s Dan Murphy from Riyadh on Tuesday.
“So today it’s hard to get a place in a school… and of course, business will drive up prices and inflation [is] it will be high, so Dubai will be an expensive city,” the president said. “And I hope so [the] the government finds ways and means. And it is not easy to find ways and means when there is a constant influx of people into the city.”
The latest Dubai property market figures tell a story of rising demand. In July 2024, real estate sales reached 49.6 billion dirhams ($13.5 billion), up 31.63 percent from the same period in 2023, according to local brokerage Elite Merit Real Estate.
“In the first half of 2024 alone, there were over 43,000 real estate transactions worth approximately AED 122.9 billion, an increase of 30% from the previous year,” the company’s report published on September 10 said, adding that the growth was partly due to the “rapid absorption of new stock”. Around 80% of the units launched from 2022 have already been sold, the report estimates.
Aerial view of cityscape and skyscraper at sunset in Dubai Marina.
Lu Shaoji | Moment | Getty Images
“Dubai’s real estate market is doing extremely well and I think we will continue to do well because the demand in Europe is phenomenal,” Sajwani said. “Everyone wants to go to Dubai, from the taxi driver to the waiter to the businessman… Dubai is now attracting a lot of not only rich people, but also a lot of talented people. And it’s growing at a different level than pre-Covid.”
The Damac founder noted how the Covid-19 period has boosted Dubai’s popularity as a place to live: while much of the world remained in lockdown, the emirate boosted tourism and attracted new residents with the help of visas for remote workers and entrepreneurship.
“Dubai today is a global city, absolutely, and by attracting a lot of talent and a lot of business, we will continue to grow,” Sajwani said.
Dubai has experienced a volatile boom-and-bust cycle in the past, most notably during the 2008-2009 crisis, when the Emirati property market collapsed and many investors had to default on their debts. Asked if he was worried about a similar cycle repeating itself, Sajwani expressed confidence that the system was different now.
Asked if Dubai is more stable now, Sajwani replied: “100%”.
“One of the main reasons for this is that the regulations brought in by the Dubai government after [the] The crash of ’09 or ’08 were pretty good regulations. Very, very strict on developers, clients and zoning,” he said. “So this regulation helps — not everyone can come and enter the market and just start a project… There’s very strict escrow, so the customer’s money is very protected and that’s what makes the market very efficient.”
