A breathtaking view of Dubai Marina, a key attraction for local and global investors.
Inayat-ur-Rahman, Business Editor
The property market in Dubai offers a plethora of investment opportunities. The Dubai real estate market is experiencing an exciting phase of remarkable growth, characterised by an unprecedented surge in real estate transactions. Notably, the residential sector has emerged as a primary driver of this surge.
Recent research conducted by CBRE highlights a significant milestone in the Dubai residential market in August 2023, with a total of 11,328 transactions—now the second-highest monthly record ever recorded. This impressive feat represents a staggering 22.0% increase compared to the previous year’s data. Equally remarkable are the year-to-date statistics, revealing a record-breaking total of 79,605 registered transactions during the same period.
This was stated by Farooq Syed, CEO, Springfield Properties, during an exclusive interview with Gulf Today. “However, the Dubai real estate market is not solely defined by statistics. It is currently undergoing a profound transformation centred on the aspirations of its residents.”
Farooq Syed, CEO, Springfield Properties.
Notably, there is a discernible shift towards luxury living, with a growing demand for high-end, sustainable properties that cater to those seeking an elevated lifestyle. This evolving trend mirrors the changing preferences and aspirations of individuals searching for more than just a place to reside; they are actively pursuing an exceptional and sustainable living experience within the vibrant heart of Dubai.” Syed added.
He noted that indeed, there is substantial potential within the Dubai property market, driven by several compelling factors.
“Dubai provides a tax-friendly environment haven for real estate investors, with a notable absence of personal income tax, capital gains tax, or property tax. What’s more, the government has rolled out enticing incentives like long-term visas for investors, ensuring stability and security. It is estimated that 20% of offshore Dubai real estate is owned by investors in India, and 10% is owned by UK investors,” Syed added.
“From opulent villas and contemporary apartments to bustling commercial properties and versatile mixed-use developments, there’s something for every investor. The city’s iconic landmarks and world-class infrastructure further enhance the appeal of Dubai’s property landscape. There is a massive potential for favourable investment returns, reaching up to 7%. in Dubai.”
“Dubai’s strategic location as a global business hub is also a major draw for investors. It’s the gateway to the Middle East, Africa, and Asia, making it an investor’s paradise. The robust economy attracts multinational corporations and a diverse expatriate population, ensuring consistent demand for both residential and commercial properties.”
He noted that Dubai offers a wide array of locations, each with distinct investment potential. When choosing a location, consider proximity to business hubs, transportation links, amenities, and future development plans. Prime areas like Downtown Dubai, Dubai Marina, Palm Jumeirah, Business Bay, and the upcoming Palm Jebel Ali are renowned for their high demand and rental yields.”
“Amidst the exciting projections of a 13.5% price growth in the Dubai real estate market this year, there have indeed been noticeable jumps in rent and sales prices. A variety of factors is driving this impressive growth, and it’s reshaping the Dubai property landscape.”
“Rental prices in Dubai have steadily risen, particularly in prime areas and sought-after neighbourhoods. The strong demand for quality housing and Dubai’s appeal to expatriates have fuelled this upward rent trend. As the city continues to expand and diversify its economy, the need for residential properties remains strong.”
“Sales prices are also rising, with luxury properties seeing significant appreciation amid a shortage of high-end properties. The consistent demand for luxury second homes among the international elite has played a pivotal role in this market surge. Villa prices have surged beyond the previous market peak in 2014 by nearly 5%.”
“Developments such as the much-in-demand Palm Jebel Ali, highlight the dynamic and competitive nature of Dubai’s real estate market, making it an exciting prospect for buyers and investors alike, driven by both local and international demand for high-quality properties.”
The Dubai real estate market has emerged as a magnet for high-net-worth individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs).
“The luxury property market aligns with the compelling recent data emphasising Dubai’s appeal as a hotspot for wealth accumulation. Anchored by a robust and diversified economy, Dubai offers a secure and promising investment environment. “ “Springfield Properties has been a prominent and trusted name in Dubai’s real estate market since its establishment in 2008. With a dedicated team of over 100 real estate professionals and marketing experts, we have firmly established ourselves as a cornerstone of the real estate landscape in the UAE.”
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