Property prices in Dubai are at their best ever and the current bull run in the emirate's real estate market is different from the two previous peaks in 2008 and 2014. According to a leading expert, prices are unlikely to fall back in the near future.
"There is still tremendous potential and promise for Dubai and the UAE as a whole. In particular, Dubai has found itself in a unique situation between the West and Asia, attracting all the business and talent flows," Alex Galtsev, founder of artificial intelligence-based prop technology company Realiste, told The Halifax Times in an interview.
Galtsev emphasized that "there is a complex infrastructure and legal framework (such as escrow accounts, etc.) in Dubai right now. Currently, the entire construction is extensively diversified with funding coming mainly from cash from many countries. There are great opportunities and real estate is still highly undervalued," he added.
Comparing real estate in Dubai with other major cities such as New York and London, Galtsev said prices in the Big Apple are currently about 2.5 to 3 times higher than in Dubai. In London, the most expensive area is about $15,000 per square meter, about twice the price of downtown Dubai." However, properties with such prices in London are not of the luxury variety and are mostly older. In Dubai, near the Burj Khalifa city center, the price per square meter is $7,500, which is half the price and the quality of the property is twice as much. So the difference in terms of quality and price is about four times," he says.
According to Realiste's AI platform, the best-selling areas in Dubai are Downtown, JVC, soon to be joined by Sobha Hartland and Creek Harbour, and already ranked in the top five districts.
Artificial intelligence makes real estate transactions more transparent, says Galtsev." The more transparent the real estate market is, the more attractive it is to investors and clients. When you see that everything is transparent, you won't be cheated and you can confidently make a purchase and reap the benefits of rent or market growth. Of course, the more transparent the market is, the greater its volume," he added.
Regarding the recent spurt of branded homes being launched, Galtsev said it has increased the value of real estate by 25 to 40 percent." It has really increased tourism and attracted the attention of investors," he added.
Galtsev predicts that Dubai's real estate market will continue to grow rapidly over the next three years." This year, 2023, will be the biggest year in terms of transaction volume and property value growth. Over time, the rate of growth will decline, but for now, it is a peak opportunity to enter this market. The risk is significantly lower now compared to when the market entered the Covid-19 pandemic," he said.
Galtsev believes this time around the Dubai market will not repeat the previous boom and subsequent bust cycle because the market is becoming digital and transparent." People understand the value and quality that exists in Dubai, the UAE and the cities themselves in terms of safety, cleanliness, tourism, etc. The prospects are much greater than any other city in the world," he added.
