DUBAI, United Arab Emirates — Dubai’s real estate scene shows no signs of slowing down, with 2024 expected to be another record year in terms of sales and property values, according to local real estate firms.
Rising demand for real estate, especially in the luxury segment, is driving up prices not only for homes but also for everything else in the city – at a time when the UAE is expected to become the world's largest wealth magnet for the third year in a row.
For Hussain Sajwani, CEO of Dubai real estate giant Damac, this is both good and bad news.
“What worries me a little in Dubai is that [it’s] an expensive city, and I have said this before, that Dubai [is] will be [an] expensive city. Because when the demand is so high, and especially talented, average people come, there is more demand,” Sajwani told CNBC's Dan Murphy from Riyadh on Tuesday.
“So today it is difficult to get a place in a school … and of course business will raise prices, and inflation [is] high, so Dubai will be an expensive city,” said the chairman. “And I hope [the] Government has to find ways and means. And it is not easy to find ways and means when there is a continuous influx of people into the city.”
The latest figures on the Dubai real estate market show growing demand. In July 2024, property sales reached 49.6 billion dirhams ($13.5 billion), an increase of 31.63% over 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 valued at approximately AED 122.9 billion, representing a 30% increase year-on-year,” said the company's report published on September 10. The growth was partly due to the “rapid absorption of new inventory.” Around 80% of the units brought to market since 2022 have already been sold, the report estimates.
Aerial view of cityscape and skyscrapers at sunset in Dubai Marina.
Lu Shaoji | Moment |
“The real estate market in Dubai is doing extremely well and I think it will continue to do so because the demand in Europe is incredible,” said Sajwani. “Everyone wants to go to Dubai, from taxi drivers to waiters to business people… Dubai is now attracting not only a lot of rich people but also a lot of talented people. And it is growing at a different level than before Covid.”
The founder of Damac pointed out that the Covid-19 period greatly increased Dubai's popularity as a place to live: While curfews continued in much of the world, the emirate promoted tourism and attracted new residents with the help of visas for telecommuting and entrepreneurship.
“Dubai is now a global city in every sense, attracting a lot of talent and companies. We will continue to grow,” said Sajwani.
Dubai has experienced a volatile boom-and-bust cycle in the past, most notably during the 2008-2009 crisis period when the emirate's real estate market collapsed and many investors defaulted on their debts. Asked if he feared a similar cycle could repeat itself, Sajwani expressed confidence that the system is different now.
When asked if Dubai is now more stable, Sajwani replied: “100%.”
“One of the main reasons for this is the regulations that the Dubai government introduced after [the] “The regulations during the crash of 2009 or 2008 were very good. They were very, very strict on developers, customers and zoning,” he said. “So this regulation is helpful – not anyone can just enter the market and start a project… There are very strict escrow arrangements so the customer's money is very well protected and that makes the market very efficient.”
Correction: The headline of this article has been updated to reflect Hussain Sajwani's title as chairman of Damac.
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