Real estate experts have confirmed that the strategic vision of the Emirate of Dubai to become a global hub for real estate investment, and home to more than five million people by 2040, supports the entry of new players into the real estate market.
They told Al-Emarat Al-Youm that the emergence of new real estate developers in the UAE in general, and Dubai in particular, is a matter in the right direction and very positive, stressing that the real estate market is strong enough to welcome and support new developers.
They explained that the Dubai real estate market enjoys a set of factors that they described as “amazing” that distinguish it from other global real estate destinations, which made it a destination preferred by foreign investors, due to combined components, most notably the advanced infrastructure, large returns on investment, and diverse real estate offerings that range from reasonably priced apartments to luxury villas, noting that the remarkable growth in sales transactions during the first eight months of this year shows the market’s ability to accommodate new projects.
They reviewed to “Emarat Al Youm” the advantages of the Dubai real estate market in terms of the mature legal and legislative infrastructure that supports real estate developers and investors, in addition to the presence of global service providers from brokerage, marketing and valuation companies at a global level, with a high demand globally and not just locally, stressing that the strong legal framework and transparent investment policies in Dubai provide investors with confidence and reassurance.
positive trend
“The emergence of new developers in the UAE in general, and Dubai in particular, is a positive step in the right direction,” said Daniel Hadi, CEO of Engel & Völkers Middle East. “As more developers enter the market, investors will benefit from more options in terms of price, location and design, allowing them to find properties that match their preferences.”
“Competitiveness encourages new real estate developers to find new ways to stand out and compete, which in turn drives innovation, improvements in design and quality, competitive pricing, and flexible payment options, all of which are indicators of a healthy market,” he added.
Hadi pointed out that the remarkable growth in sales transactions during the first eight months of the current year 2024 shows the market’s ability to absorb new projects, indicating that this growth reflects the demand and the market’s ability to absorb new arrivals.
“In turn, Dubai’s strategic vision to become a global hub for real estate investment and home to 5.8 million people by 2040 supports the entry of new players into the market,” he added, noting that as Dubai continues to expand its global presence and attract international investors, the market appears strong enough to welcome and support new developers.
“Dubai’s real estate market offers many advantages that help it stand out in the region, including freehold ownership for foreigners, a tax-free environment on property ownership, income or capital gains, and a variety of real estate options, from luxury villas and waterfront communities to affordable apartments and homes,” he said, noting that the real estate market’s business has been boosted by the strong regulatory framework of the Dubai Land Department and the Real Estate Regulatory Agency, as well as the residency laws available to real estate investors.
Global destination
For his part, the Managing Director of Harbor Real Estate, Muhannad Al Wadi, said: “The UAE, and specifically Dubai, has become a global real estate destination and a fertile ground for success in the real estate sector, whether for investors or all parties to the real estate equation, from developers to real estate service providers. Everyone benefits here.”
Al Wadi added: “The advantages of the Dubai real estate market are represented by the mature legal and legislative infrastructure that supports real estate developers and investors interested in real estate development, in addition to the presence of global service providers from brokerage, marketing and valuation companies at a global level, which helps in the success of the system as a whole.”
He stressed that the real estate market in Dubai is characterised by high demand globally, not just locally, in addition to sustainability and real-life success stories, noting that the market is also characterised by a promising future based on long-term strategies led by the government, including the Dubai Urban Plan 2040, the Dubai Economic Agenda “D33”, and others, which helps real estate developers in drawing their directions.
Al Wadi pointed out that there is a diversity of real estate products and opportunities for real estate development, as the market provides all types of development: commercial, residential, shops, offices, malls, warehouses, and all types of land are available in Dubai, in addition to the availability of high-level consulting and contracting companies, in addition to organizing and following up on contracts. He said: “It is an integrated system for the success of any real estate development project, and there is a profit margin that is considered one of the highest in the world for real estate developers.”
Strategic location
“Dubai’s real estate market has an amazing set of factors that set it apart from other global real estate destinations,” said Nikita Kuznetsov, CEO of Metropolitan Premium Properties. “Dubai’s strategic location at the intersection of Europe, Asia and Africa, its strong economy and the government support the real estate market enjoys have made the city a leading global hub for business and tourism.” He stressed that this strong demand is boosting the real estate market and leading to a steady increase in property values.
“It is important to note that the emirate’s commitment to developing its infrastructure, including world-class transportation systems and luxury amenities, enhances its appeal as a prime destination to live and work, while Dubai’s robust legal framework and transparent investment policies provide investors with confidence and reassurance,” Kuznetsov added.
“The city’s diverse real estate offerings, ranging from affordable apartments to luxury villas, cater to a range of tastes and budgets, from high-net-worth individuals to expatriates looking for a vibrant lifestyle,” Kuznetsov continued, pointing to the emirate’s iconic landmarks such as Burj Khalifa and Palm Jumeirah, which enhance Dubai’s global appeal and significantly increase property values.
He stressed that these factors, in addition to the leading levels of security and safety in Dubai, make this city a very attractive option for real estate investment.
Good experience
In the same context, the founder and director of “Al Liwan Royal Real Estate Company”, Mohammed Bu Harb, said that the experience of real estate developers entering the UAE market is a pioneering and good experience in the eyes of real estate investors, given the offers and distinctive finishing in construction and after-sales services provided by new companies, as the real estate markets in the UAE have transformed from emerging markets to very mature ones. The increases in real estate markets, whether in terms of rental value or the market value of the property, have contributed to the increase in the movement of new developers in the real estate market, in addition to building the reputation of the developer that the Dubai real estate market is the appropriate market to launch in all parts of the world, as everyone looks at Dubai as a starting point for entrepreneurship and real estate development.
“Real estate companies have contributed to increasing demand in all real estate categories, including luxury properties, with improved quality of specifications, real estate finishes and different designs that we see in residential towers, villas and apartments, making Dubai a launch pad for these real estate developers,” Buharb added.
Buharb stressed that Dubai has become very mature and is a guide and indicator for other markets, with the towers and distinctive designs offered by these developers.
Attractive environment with clear and transparent rules
Tariq Ramadan, CEO of Malak Real Estate, said that the Dubai Land Department and the Real Estate Regulatory Agency have made great efforts over the past 20 years to regulate the real estate sector and provide an attractive and suitable environment for investors, especially companies wishing to invest in real estate development. This includes clear and transparent laws, regulating the mechanisms of dealing between the developer and buyers, in addition to the existence of an advanced banking system that provides financing to buyers of these properties.
He added: “Dubai has created an attractive environment for investors and buyers of these projects, which helps developers succeed in launching real estate projects again, by providing an attractive and organized environment, including a legal infrastructure that protects all parties, and regulates relations between buyers and developers.”
He explained that Dubai worked on two axes: the first is to develop a suitable work environment for real estate developers to succeed and work, and the second is to attract investors and buyers to make these projects successful.
