Why Dubai?
- 10 Year Golden Visa for Investors.
- No Taxes payable on rental income or capital gains
- AED pegged to the US Dollar
- Dubai has announced a $35-billion project to transform Al Maktoum International Airport, the emirate’s second-largest airfield, into the Largest airport globally.
- As of 2022, 70% of the Fortune 500 companies with a dedicated office in the Middle East and Africa have chosen Dubai as their regional headquarters.
- The UAE is the 2nd safest country in the world, while Dubai is the 4th safest city globally, according to the 2024 Safe Cities & Countries Index by Number.
- Global investors from 53 countries represent more than $500 billion of an Asset Under Management.
- Dubai’s FDI inflows rose by 80% annually as of 2022
- In the face of the AI revolution UAE boasts a whopping 70 billion dollar digital economy. While Dubai is home to 60% of all FinTech companies based in the Gulf region
- Futuristic 2040 plan to reinforce Dubai as a global destination with 7.8 million Population increase from the current 3.3 million 134% increase in tourism & hospitality activities 1.7 billion sq ft dedicated to industrial & economic activities
DUBAI FUTURE PLANS
Dubai Vision 2030
Dubai’s Vision 2030 is an initiative to transform the city into a global leader in innovation, sustainability, and digital transformation.
Key goals include:
1. Diversify the Economy: Establish Dubai as a tech, finance, and tourism hub, reducing oil dependence.
2. Expand Real Estate: Develop sustainable, luxury properties to attract global investors and residents, enhancing Dubai’s status as a premier real estate market.
3. Promote Sustainability: Achieve 75% clean energy by 2050, expand green initiatives, and boost eco-friendly public transit.
4. Embrace Smart City Tech: Implement blockchain for government services and integrate IoT for a connected, efficient city.
Strategy 2033
October 2024 – H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, has approved new strategic plans to enhance Dubai’s leadership across key sectors over the next decade.
The initiatives include the Education Strategy 2033 and the Real Estate Strategy 2033, which aims to raise Dubai’s real estate transactions to AED 1 trillion by 2033.
Additional plans focus on modernising transport, transitioning to a cashless economy, and preserving the emirate’s heritage.
Education Strategy – H.H. Sheikh Hamdan bin Mohammed said: “Our strategy for a world-leading education system will foster lifelong learning and equip the next generation of national leaders, grounded in Emirati values and identity, to shape the future”.
OPPORTUNITY ANALYSIS
Dubai’s property market has emerged as a beacon of hope in a global economic climate plagued by uncertainty. Despite concerns regarding a potential housing bubble, Realintel’s data-driven analysis reveals that the market is currently fairly valued and poised for sustained growth.
Market Value
Realintel’s assessment of the Dubai property market is based on a comprehensive analysis of key data points, including:
- Year-on-year price growth of 20.71% in Q1 2024, according to Reidin Data Analytics
- Year-on-year Rental market growth of 20.75% in Q1 2024, according to Reidin Data Analytics
- Transaction volumes of over 166,000 in 2023, 36% increase from the previous year
This data suggests that the Dubai property market is currently in a healthy state, with robust demand from both buyers and renters.
Demand Drivers
Dubai’s property market is underpinned by a number of strong demand drivers, including:
- A growing population, with over 3.5 million residents Targeted by the government to reach 6 Million by the next Decade
- A thriving economy, with Non Oil GDP growth of 6.2% in 2023
- A favorable regulatory environment, including the Golden Visa program and the DLD Approved Brokers list
These factors have attracted significant investment from both domestic and international buyers, contributing to the market’s strong performance.
Market Sustainability
Realintel’s analysis indicates that the Dubai property market is well-positioned to maintain its momentum in the coming quarters. This is supported by the following factors:
- A limited supply of new units, with only around 34,000 units expected to be delivered in 2024, according to JLL
- A strong rental market, which provides investors with a steady stream of income
- A growing number of high-net-worth individuals relocating to Dubai
- These factors suggest that the Dubai property market is unlikely to experience a significant correction in the near future.
Comparative Analysis
UBS’s Global Real Estate Bubble Index 2023 classifies Dubai as a fairly valued market, while several other global cities are considered high-risk or overvalued. This comparison further highlights the attractiveness of the Dubai property market to investors.
Future Prospects
Realintel’s data-driven insights suggest that Dubai’s property market is poised for sustained growth, supported by strong fundamentals and robust demand.
The following trends are expected to drive market growth in the coming years:
- Increasing investment from foreign buyers
- Expansion of key economic sectors – technology, real estate & tourism
- Development of new mega-projects under Dubai Vision 2030 & 2040
- ROADMAP