Dubai real estate may go up 5-7%

By FAKHR AHMAD: Dubai real prices are set to increase by between five and seven per cent this year, according to D&B Properties, reported by Arabian Business.
The UAE property market is set to witness significant growth amid strong buyer demand, according to industry experts and analysts.
Buoyed by government initiatives, economic resilience, and robust investor interest, the market is poised for expansion.
Dubai real estate forecast
However, developers and analysts caution that a potential shift in late 2024 could impact the luxury segment.
Soliman Hossameldin, Director of Digital Marketing at D&B Properties, said: “Dubai offers a compelling investment proposition with its strategic location, world-class infrastructure, and dynamic business environment.
“Investors find Dubai an attractive destination due to its unparalleled opportunities for capital appreciation and rental yields.
“Moreover, the city’s status as a global hub for trade and tourism ensures a steady stream of demand for real estate investments”.
The dynamic performance of both Dubai and Abu Dhabi underscores the resilience of the UAE property market.
Government initiatives and sustained economic growth have fuelled a surge in transaction volumes, particularly notable in Dubai, which recorded a significant uptick in new property transactions.
Projections indicate a five to seven per cent increase in property prices in Dubai and a three to nine per cent rise in Abu Dhabi.
In 2023, Dubai witnessed an extraordinary surge in its real estate market, with 116,116 property transactions amounting to AED429.6bn ($117bn).
This marked a remarkable 33.8 per cent increase in transactions and a substantial 36.7 per cent rise in values compared to the previous year, demonstrating the market’s resilience and attractiveness to investors.
Investor demand remains robust, with major players hailing from key regions such as India, China, the UK, Europe, and the CIS countries.
Moreover, there is emerging interest from Latin America, Mexico, and Canada, indicating the UAE’s growing global appeal as a real estate investment destination.
The anticipated post-pandemic recovery in China is also expected to further bolster demand and investor confidence in the market.
As the UAE property market continues to evolve, stakeholders are urged to remain vigilant and adaptable to potential shifts in market dynamics.
Developers, investors, and policymakers alike must collaborate to ensure sustainable growth and long-term stability in the sector.