Dubai's property boom to continue despite rising prices, Property Finder CEO tells The Hustle

Dubai: Dubai's property prices are expected to continue rising for the foreseeable future, as unprecedented population growth outpaces new supply, Michael Lahyani, CEO and founder of Property Finder, told The Hustle podcast by Gulf News.

Property Finder, which recently secured a major investment from global private equity giants Blackstone and Permira – a whopping $525 million for a ‘minority’ stake in the prop-tech giant, is on a roll, and Lahyani is optimistic.

He addressed one of the most pressing questions for UAE residents: Why aren’t rents decreasing despite constant construction?

"The demand that is coming from immigration is always higher, or at least in the last five years has been higher than the supply," he explained.

The entrepreneur, who founded Property Finder in 2005 at the age of 24, emphasized that Dubai's unique advantage lies in its virtually unlimited land supply. "Luckily, there isn't any challenge of land. The land is almost an unlimited supply. We've got a massive desert, which we continue to build and grow in," Lahyani said.

He contrasted Dubai's situation with cities like Manhattan, where limited space creates property bubbles and dramatic price corrections. "Construction is going to continue in the UAE for the foreseeable future," he said, though he acknowledged that infrastructure and traffic remain potential bottlenecks.

Are branded residences a bad idea?

The Property Finder chief also revealed his scepticism about the current trend towards branded residences from luxury brands.

"I wouldn't want to raise my children in a branded residence. You want to live in a normal family home," he said. He also said that such properties carry higher service charges and questionable resale value, as "finishing and furniture devalues" over time.

Lahyani was also cautious in his perception towards off-plan developments in Ras Al Khaimah, despite the emirate’s push for casino-led entertainment. "When I see very expensive, sometimes branded properties in Ras Al Khaimah, I just hope that the market holds," he said, noting that prices shouldn't match Dubai's given the location differences.

What’s next?

For aspiring property investors, Lahyani offered straightforward advice: "Buying the home where you're going to live is probably the least risky investment and the wisest one to do."

He confirmed that living off rental income from multiple properties is achievable, calling real estate "the safest way, not the fastest, but the safest way to create wealth over your lifetime."

Following Blackstone and Permira’s recent investment, Property Finder continues to expand across five markets while maintaining its singular focus on real estate.

"As long as there’s friction in the real estate journey, our job is not finished," Lahyani said, dismissing any plans to become a super app.

The CEO's journey began when he struggled to find accommodation after arriving in Dubai. His solution was to launch Al Bab World, competing against Gulf News's property supplement.

"We had a good six years of proper loss-making. It was painful," he recalled. The early days required ruthlessness and paranoia—traits Lahyani considers essential for entrepreneurship.

Subscribe to ‘The Hustle’ wherever you get your podcasts and become part of a community dedicated to pushing boundaries and building a brighter future.

Want to be on The Hustle? Write to us at thehustle@gulfnews.com