Dubai's real estate market is primarily dominated by apartments, accounting for about 85% of the housing supply. The prices and rents of apartments and villas are rapidly rising, particularly in prime locations such as Downtown Dubai and Jumeirah Palm Island. The luxury property sales have also seen a surge, making Dubai's luxury real estate market the fourth most active globally.
The Dubai real estate market has attracted the attention of both domestic and international investors. Firstly, Dubai's property prices are relatively lower, giving it a competitive advantage compared to cities like Monaco, New York, and London. Secondly, the UAE has implemented tax exemptions, reduced investment thresholds, and friendly visa policies, attracting investors and buyers.
Moreover, Dubai's strategic location as a commercial and financial hub in the Middle East has attracted numerous businesses and high-net-worth individuals to establish offices or purchase properties in the city.
Dubai's real estate market has been relatively less affected by the pandemic, leading many investors and buyers to turn their attention to this city. Dubai has taken proactive measures to control the situation, maintaining relative economic stability.
Dubai has also become a permanent residence for some expatriates, offering a safe and stable environment away from geopolitical frictions. The UAE's lack of income tax, property tax, and capital gains tax has also attracted global wealth seekers looking for secure, high-return, and low-tax opportunities.
However, the Dubai real estate market has experienced some changes in recent times. The monthly rental growth rate has slightly contracted, and property transaction volumes have also seen a decline, possibly due to developers' depleting inventory.
Despite this, the demand in the Dubai real estate market remains robust, driven by various local and global sources. The number of high-net-worth individuals in Dubai is expected to continue to rise, further propelling the growth of the real estate market.
