Dubai realty market: Where it is headed

Expert eyeManish Khatri

Dubai, without a doubt, has become one of the world’s leading investment hubs. Around 30 to 40 per cent of property buyers in the Dubai market are investors, but the rest are end-users who are keen to buy a property that they can call home. Property is a huge investment and most people only buy once in their lifetime, which is why it is essential for them to find something they absolutely want.

Lower interest rates, lucrative yearly rental yield in the range of four to seven per cent, security, tax-free returns on investments, a regulated market structure and attractive payment options are additional triggers for driving global investments in huge numbers in the UAE market. The market is showing steady growth and the UAE continues its status as one of the most promising countries for real estate investments.

     See related story: Dubai consolidating its position as the region's leading commercial hub

The realty sector in Dubai is heading to stability, and several new projects are coming up all over the city in line with increased investor confidence. It is a good time to buy off-plan properties. Several new residential projects target foreign investors who show great interest in such projects, especially in exclusive communities.

Considering this, many developers are focusing on the expansion of well-established communities, creating a sense of exclusivity and delivering on the promise.

The future will witness more demand from foreign investors, in light of forthcoming major projects announced by government and private sector developers.

Dubai Plan 2021 is a landmark goal aimed at reinforcing the city’s position as global centre and destination. The plan will have a positive impact on Dubai’s economy and will significantly support the real estate market.

Dubai has been heading towards a very positive level for the past two years, with all the fundamentals in place for the real estate industry to showcase robust growth.

Developers are now recognising these needs and planning to launch more projects, anticipating the demand to meet the goals of Dubai Plan 2021.

The next five to six years are expected to witness a sustained growth in the hospitality sector, with an increasing number of hotels and serviced apartments in addition to commercial and residential buildings.

With the arrival of millions of tourists and residents, the population will grow in line with the opportunities created to achieve the plan by year 2021.

When it comes to investing in the realty sector, those willing to hold the properties beyond the year 2021 are likely to benefit from significant long-term growth in values. Investors should buy properties to make profits over the long run by achieving capital appreciation while earning more income in the form of rental yield.
The Dubai Plan 2021 aims to make the city the most secure place in the world for residents and tourists alike. The demand for premium homes in Dubai is increasing, led by the city’s status as the region’s business and lifestyle hub.

     More on Dubai Plan 2021: Plan 2021 and its impact on Dubai realty

Dubai follows a comprehensive system of sustainable real estate solutions. The authorities have developed and implemented policies to enhance the emirate’s status as a leading destination for the development of integrated solutions for the realty sector at the global level.

The industry players have a great role to play here. They should strive to build good relations with the local communities through thoughtful activities to reach potential stakeholders. Such activities will help them build a sense of solidarity with the environment. This will contribute to Dubai’s continuing status as the much-sought-after realty investment destination in the coming years.

Source: Manish Khatri, Special to Freehold Properties
Vice President, SPF Realty


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