Dubai’s shift from an oil-based economy to one centred on real estate sets an example for nations across the globe. His Highness Sheikh Mohammed Bin Rashid Al Maktoum led this change in 2002 when Dubai allowed all foreign investors to buy property. In a short time, real estate investment became the main driver of the country’s economy, adding over 5-6% to the GDP. Meanwhile, oil’s share dropped to less than 1%.
Due to the absence of personal income tax on freehold properties, Dubai’s residential market is soaring. In Q1 of 2024 alone, the city’s real estate and construction industry contributed up to 14% of its GDP, valued at around $31.31 Billion. Since 2011, more than 532,000 property transactions have been recorded in Dubai, totalling over $119 Billion (AED 435 Billion). Despite a slight setback from the COVID-19 pandemic, the property market rebounded strongly, with a significant surge in luxury properties amidst global uncertainties.
Square Yards reports that property deals and purchases grew by 2% from 2011 to 2019. This growth jumped to 50% between 2021 and 2023. For context, 40% of all deals from 2011 to 2023 had happened by 2024. Real estate investors saw a momentous year in 2023. They bought over 82,000 off-plan and residential properties worth more than $21 billion. 2024 looks to top even that. By mid-year, it had already reached 88% of last year’s record deals.
Real Estate Boom Drives Population Growth in Dubai
Dubai Airport’s status reflects the high property demand and anticipated surge in sales. It is one of the busiest in the world, serving 45 million passengers within the first half of 2024. Initiatives like the Gaming Visa and Golden Visa are successfully attracting more investors and high-net-worth individuals, further fueling market growth. The city itself has grown from 72,900 residents in the 1970s to 3.5 million in the present time, with expatriates making up three-quarters of the population.
Areas like Mohammed Bin Rashid City, Jumeirah, Business Bay, and Sheikh Zayed Road annually attract hundreds of high-net-worth individuals and property investors worldwide. As the market soars, developers such as Emaar Properties, Sobha Realty, Azizi Developments, and Damac Properties continue building projects to meet growing demand.
Despite challenges like the recent April floods and the COVID-19 slowdown, Dubai’s real estate market shows no signs of slowing down. Quick government initiatives and strategic policies offered by developers, such as free flood repairs, helped maintain public trust. These measures have strengthened Dubai’s economy, maintaining its position as a key force in the global property market.
Dubai’s lucrative schemes for real estate developers and investors have significantly boosted its economy, attracting thousands of people from around the world. The market is booming with new real estate opportunities, and even more attractive regions are under construction, potentially evolving into bustling towns with hundreds of residents. This growth reflects the hopes of investors likely to see extraordinary results. Rising sales and transactions show the city is poised to lead in GDP and real estate profits in the UAE.
Read more through the links below to uncover the key trends and market leaders driving this growth:
property.constructionweekonline – https://bit.ly/3M2ycsn
Published Date: 14 Aug, 2024
