While the real estate sector of Dubai and the UAE in general has been undergoing a massive boom for the last couple of years, there have been conflicting views on how far the market can maintain its upward momentum.

On the 26th of January, the Dubai Land Department reported that the market ended that week with a total of 4, 123 real estate transactions valued at USD 3.87 Billion. Although these earnings are impressive, there has been speculation among real estate players that the market might repeat a correction pattern last seen in 2008. Ronan Hannan of Proven Partners consultancy believes that Dubai’s reliance on foreign capital from countries such as Russia and China puts the market in a potentially vulnerable position.

Despite ranking as Dubai’s top foreign homebuyers in the first quarter of 2023, Russian buyers dropped to third place by the end of the same year. However, Indian investors are poised to fill any possible gaps left by the Russians, as they currently comprise the largest market share among foreigners in Dubai. With recorded transactions worth AED 14.8 Billion, Indian investors accounted for 14% of total foreign investment value according to the Dubai Land Department. Factors that make Dubai attractive to Indian buyers include its proximity, lifestyle, tax incentives, and potential for returns.

Additionally, Dubai has recently received attention from Egyptian, Lebanese, Pakistani, and Turkish investors.

Projections of Dubai’s property prices are also subject to different interpretations, varying between forecasts of a 3.5% increase in 2024 to the anticipation of a 10-15% percent tumble in the coming years. However, Dubai’s financial institutions and major developers are reportedly learning from past experiences and staying well-prepared.

The diversified perspectives on Dubai’s real estate future are heavy indicators that the sector has attracted prominent attention and interest on a worldwide scale.

Sources:

Reuters

https://www.reuters.com/world/middle-east/dubais-property-boom-shows-signs-fizzling-out-2024-01-26/

Economy Middle East

https://economymiddleeast.com/news/dubai-real-estate-sector-transactions/

Zee News

https://zeenews.india.com/india/why-are-more-indians-investing-in-dubai-an-in-depth-look-into-dubai-real-estate-trends-2715565.html