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Dubai's real estate market is booming, drawing in both local and foreign investors. A robust regulatory environment, coupled with cutting-edge developments and evolving buyer preferences, is fueling a surge of interest in Dubai's lucrative property opportunities.
Looking ahead to 2025, Ramjee Iyer, Chairman & Managing Director of Acube Developments, predicts steady growth, fueled by an influx of expats and global investors.
He said: “The influx of expats and global investors is expected to boost sales in both luxury and mid-range segments. We also foresee a particular surge in demand for properties that offer integrated living solutions, as buyers increasingly prioritise convenience and lifestyle.”
Echoing this sentiment, Yogesh Bulchandani, Founder of Sunrise Capital, predicted a balanced growth across various segments.
"We are very optimistic and predict balanced growth across various segments, particularly in urban developments that cater to the needs of young professionals and families," Bulchandani said. "The demand for affordable housing options will also rise, as more people seek value without compromising on quality."
A key facilitator of Dubai’s real estate boom is a progressive regulatory environment, which has transformed the city’s real estate landscape. Long-term visas for expats and relaxed property ownership laws have played a pivotal role in attracting foreign investment, creating a more stable and investor-friendly market, according to Iyer.
“These measures have not only attracted foreign investment but have also encouraged local buyers to engage more actively in the market,” he said.
Bulchandani also emphasised the role of recent reforms, stating, "The regulatory framework has been instrumental in the growth of Dubai’s real estate sector. Recent reforms, such as the introduction of the Real Estate Regulatory Agency's guidelines, have all enhanced transparency and security for our industry."
These reforms have not only created a secure environment for international investors but also fostered local participation, leading to an all-around buoyant market.
Emerging Hotspots for 2025
Palm Jumeirah, having seen record-breaking sales in 2023, is expected to remain a hotspot in 2025, noted Iyer.
"Palm Jumeirah will continue to do very well due to the high demand for luxury properties, particularly in waterfront locations," he said.
A Knight Frank report released in January this year said Palm Jumeirah accounted for 38.5 per cent of all homes that sold for more than $10 million (166 deals) and 39.2 per cent for properties valued at more than $25 million (22 deals) in 2023.
However, newer projects are also poised to take centre-stage. The under-construction Dubai Islands is set to attract off-plan investors with its beachfront properties and premium amenities.
“This under construction man-made archipelago formed by five islands will have 20km of beachfront, including a Blue Flag certified beach, and approximately 2 square kilometres of parks, open spaces, and premium golf courses boasting sea views,” noted Iyer.
Meanwhile, Bulchandani underlined Dubai South and Mohammed Bin Rashid City as hotspots for 2025.
“Dubai South, with its strategic location near the Expo 2020 site and the developing Al Maktoum International Airport, is poised for rapid development and investment. Mohammed Bin Rashid City, with its focus on luxury living and integrated community features, will attract affluent buyers looking for a high-quality lifestyle.”
Opportunities for new entrants
Despite rapid growth, the real estate sector in Dubai remains a thriving market with opportunities for local and foreign companies and entrepreneurs. However, entering Dubai’s real estate market is not without its challenges, particularly when it comes to navigating the regulatory and competitive landscape.
Varoon Sinha, Founder of business setup firm Smart Zone, elaborated: “Firstly, there's regulatory compliance; navigating the complex rules and obtaining the required licenses can be demanding. Another challenge is market saturation. The real estate space is extremely competitive, so having a distinctive strategy is pivotal. Costs and investment are also fundamental; setting up can be expensive, and securing funding is potentially tough. Having solid local knowledge is crucial. Very importantly, possessing strong local knowledge is essential and can significantly impact outcomes.”
Iyer concurred, noting that new companies looking to enter the Dubai real estate market should focus on local culture and market dynamics.
“Building strong relationships with stakeholders and leveraging technology for marketing and sales can provide a competitive edge," he added.
Smart Zone is helping approximately 20 new real estate businesses each month, highlighting the growing demand for entry into Dubai’s real estate sector, according to Sinha. The services range from licensing to market entry strategies to banking solutions, and ensuring compliance with local tax laws.
Sinha elaborated: “From obtaining licenses to setting up offices, we ensure that all regulatory requirements are met. Additionally, we facilitate connections with brokers and agents, helping developers establish their presence in the market alongside other industry leaders. We also provide expert guidance on tax implications and compliance, ensuring that clients are well-informed and operate seamlessly in the UAE.”
Bulchandani advised new companies to conduct thorough market research to identify gaps and opportunities, and emphasised digital marketing and building a strong online presence.
“Collaborating with local real estate agents and understanding the nuances of the market will help in building credibility and trust. Lastly, focusing on customer service and after-sales support can differentiate your company in a competitive landscape,” he said.
In conclusion, Dubai's real estate market is successfully drawing a new generation of investors and developers, with opportunities spanning both the luxury and affordable segments. Despite existing challenges, the city’s progressive policies and the expertise of business setup firms provide strong support, reinforcing Dubai's position as a premier destination for real estate ventures.
(Reporting by SA Kader; Editing by Anoop Menon)
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