Promising growth potential of Dubai’s real estate

In the landscape of global investments, real estate in Dubai has emerged as a pillar of stability. Amid worldwide economic fluctuations, this sector has demonstrated remarkable resilience, particularly in the luxury property segment.

The Dubai Residential Market Review Autumn 2023 by Frank Knight reveals a promising outlook for the region's real estate sector. Residential values in Dubai increased by 5% in Q3 2023, marking the 11th consecutive quarter of price rises, leaving values 30% higher than Q1 2020. However, average prices are still 7% below the 2014 peak, indicating room for further growth.

The report further states that the luxury property segment has seen a noteworthy increase, particularly in villa prices, which rose by 4.5% between June and September 2023. This growth reflects a 57% increase since Q1 2020, driven by strong demand for luxury second homes among global high-net-worth individuals (HNWIs), 66% of whom are interested in purchasing a second home in Dubai.

Imobiliare Dubai, one of the leading real estate agency in the UAE, has been pivotal in navigating these trends. With a keen eye for luxury properties and strategic partnerships, like the one with DAMAC Properties, Imobiliare Dubai has positioned itself not just as a real estate agency, but as a gateway to Dubai's most prestigious projects.

Oliver Mitri, co-founder of Imobiliare Dubai, reflects on this trend: “The surge in Dubai's luxury property sector, particularly in prime locations, is more than a fleeting trend. It's a clear indicator of the growing confidence among international investors in the city's potential as a preeminent global real estate destination. This confidence is bolstered by Dubai's strategic positioning as a hub for innovation and luxury lifestyle, coupled with its robust legal framework that ensures security for foreign investments”.

Imobiliare Dubai isn’t new to the field, having found great success in Romania, being the first real estate agency there to launch and facilitate deluxe property transactions in Dubai. Within just 3 months of its launch in the Romanian market, Imobiliare Dubai achieved a record number of transacted properties, allowing their clients to capitalise on the value of the properties and earn top returns.

Over half of the prime residential property transactions in Dubai between Q1 and Q3 2023 were secondary sales, reflecting the high proportion of end-users and second-home buyers in the current market cycle. This trend is in line with Imobiliare Dubai's strategy of providing unique opportunities for investors and end-users in the luxury property market.

Dubai's current trajectory promises a future of sustained growth and expansion, cementing its status as a global real estate powerhouse. Projected forecasts for 2024 indicate a significant uptick in Dubai's real estate sector, with an anticipated growth rate of around 15%. The findings, originating from a comprehensive AI-powered study by Realiste, a leader in property technology focused on real estate investment insights, highlight Dubai's property market as a standout performer in the coming year.

“The city's ongoing infrastructural developments and world-class amenities are attracting a diverse range of high-net-worth individuals and investors looking for lucrative opportunities. The government's proactive policies in promoting real estate growth, such as investor-friendly visa regulations and a favourable tax environment, further enhance Dubai's appeal. As a result, we are witnessing not only an increase in investment volume but also a broadening of the investor base,” adds Mitri.