Dubai: Dubai's property market continues to defy expectations, with property transactions reaching a staggering $74.6 billion in 2023. This momentum, according to the Knight Frank LLP reports will continue into 2024, with transactions already exceeding $24 billion. Notably, the next wave of growth is expected to be driven by a wider range of international buyers.
While investors from traditional hubs like India, Pakistan, and the Middle East remain significant players, Australians, Britons, Europeans, North Americans, Turks, and Iranians are expected to take the lead, according to the Khaleej Times.
What makes Dubai attractive to investors
Industry insiders credit Dubai's enduring appeal to several key factors. Its strategic location, tax-free environment, and the promise of high returns are a powerful draw for investors seeking stability amidst global uncertainties.
Despite ranking as one of the world's most expensive cities for expatriates, Dubai continues to attract high-net-worth individuals. The UAE's position as a global wealth magnet is further solidified by the fixed exchange rate of the dirham to the USD since 1997, making it particularly attractive for investors facing currency depreciation in their home countries.
New investors
Dubai's allure extends beyond traditional investor pools. Mouna Muller of Betterhomes points to the city's appeal to Europeans seeking lifestyle benefits and business opportunities.
Iranians seeking stability and Turks looking for economic diversification and high-quality real estate are also drawn to the Dubai market.
Bloomberg's report suggests that Chinese buyers may fill the gap left by waning interest from Russian investors, fueled by strategic partnerships between the UAE and China.
Reforms and proactive measures
While Dubai has a history of volatile property cycles, Bloomberg's report acknowledges the success of recent government reforms aimed at stabilizing the market.
Dubai's proactive handling of the pandemic, liberal visa policies, and the Golden Visa scheme have further bolstered its appeal.
Recent adjustments to the Golden Visa program have made it even more accessible to foreign buyers.