Dubai real estate: experts predict moderate growth

Dubai continues to remain one of the most popular regions for real estate investment, attracting buyers from all over the world. Despite a 8.2% decline in total sales volume in February, this month became the most successful February in the market's history. However, the increase in residential property prices has slowed to 0.58%, which is the smallest monthly increase since July 2022. According to the dynamic price index Property Monitor (DPI), the cost per square meter of housing in Dubai currently stands at AED 11,857 ($3,228), which is equivalent to the level of December 2013.

Overall, real estate in Dubai continues to grow and has a fairly stable trend, with growth of 30.5% relative to the November 2020 lows. This trend is positive, especially compared to the previous cycle, when the increase averaged 1.6% per month for two years. If growth rates continue at current levels, the period of growth prior to reaching peak levels will be more prolonged compared to 2014.

According to experts, the real estate market in Dubai is relatively evenly distributed between unfinished and completed projects, although more than 50% of the market is occupied by projects under construction. Resale transactions (including unfinished and under-construction projects) in February accounted for 46.3% of the market and increased by 9.1% in a month. At the same time, the number of resales under construction continues to grow.

It should be noted that further moderate price increases in Dubai real estate are expected. Some experts believe that moderate price increases in Dubai real estate will continue in the near future, which will be beneficial for buyers, as the market has not yet reached its peak. However, it should be taken into account that real estate prices may fluctuate depending on political, economic and social factors.

One of the features of the real estate market in Dubai is its high liquidity. This means that the sale of real estate can be fast and efficient, which attracts many investors and buyers. In addition, the real estate market in Dubai is open to foreign investors, making it even more attractive.

However, when buying property in Dubai, there are certain aspects that need to be taken into consideration. For example, owning property in Dubai may entail tax obligations for both local residents and foreign investors. Additionally, when purchasing property, expenses related to property maintenance and management such as utility bills, insurance, servicing, and repairs need to be factored in.

Overall, the real estate market in Dubai continues to grow, making it attractive to buyers and investors. However, when buying property, all factors related to property ownership should be considered, and decisions should be based on individual needs and capabilities.

Keywords: Dubai Real estate Experts Predict Moderate growth Property Investment Market Buyers Sellers Rental Prices Tax Regulations Demand Supply Development Opportunities Risks Strategy