DUBAI -- Dubai's population officially crosses the 3.55 million mark in 2022 and will continue to grow rapidly as more and more expatriates make Dubai their second home.
To cater for the growing population, leading developers have launched several new residential projects throughout the emirate. These include The Ritz-Carlton Residences Dubai, Dubai Mum Residences, Safa I and Safa II Towers, Kavali Fashion and Azizi Development's new $5.4 billion community, among others.
"More projects are in the pipeline and ready to launch. This provides foreign investors with the opportunity to venture into the market and benefit from the growing Dubai real estate," according to Zoom Property Insights.
In addition to real estate development, the emirate is also witnessing massive infrastructure development to accommodate the growing population.
Speaking about the impact of the growing population on Dubai's real estate market, Ata Shobeiry, CEO of Zoom Property, said that an upscale lifestyle, safety, security and plenty of opportunities to grow as a professional or entrepreneur are just a few of the reasons why Dubai is welcoming more and more foreigners every year.
"The latest visa reforms are also proving to be the cherry on the cake as they allow foreign investors to enjoy additional benefits when buying property in Dubai. All these factors continue to have a positive impact on the real estate market," Shobeiry said.
Alongside the population growth, the Dubai real estate market continues to grow. According to Zoom Property Insights, the previous year's annual transaction value, for the first time, surpassed the Dh5 trillion mark. Compared to 2021, transactions increased by 76.5%, reaching a total of Dh528 billion in 2022.
The rental market has also witnessed an increase in demand and traction as more expatriates are willing to make Dubai their second home. Average rents grew by almost 27 per cent last year, with villas and flats increasing by 27.1 per cent and 24.9 per cent respectively.
According to Zoom Property Insights, these figures are expected to increase further in 2023 as demand rises due to population growth.
"Dubai will attract more investors, entrepreneurs, job seekers and those seeking an upscale lifestyle in 2023. This will ultimately lead to growth in various sectors, including real estate, which is already experiencing high growth", Shobeiry concluded.