Imran Farooq

Dubai’s real estate market has emerged as a global investment hotspot, offering unique advantages to both local and international investors.

The city’s strategic location, robust infrastructure, and business-friendly environment have contributed to high property appreciation rates and attractive rental yields.

One of the key factors driving Dubai’s real estate market is its high rental yields. With some areas reach as high as 8 per cent and 9.43 per cent. The absence of property and capital gains taxes further enhances the investment appeal.

Dubai’s status as a global hub for tourism, finance, and trade ensures a steady demand for both residential and commercial properties. This consistent demand provides investors with stable rental income and long-term growth potential. Furthermore, the government’s initiatives like the Golden Visa programme have made it easier for foreign investors to acquire property and secure residency.

The recent years have witnessed significant growth in Dubai’s real estate market. Property rents have surged by 60 per cent since 2020, while real home prices have increased by 40 per cent due to high demand. This upward trend is supported by strategic initiatives and infrastructural developments, positioning Dubai as a prime investment hub.

As of October 2024, areas like Dubai Production City, Dubai Studio City, and Dubai Land continue to offer the highest rental returns. This, coupled with the city’s resilient market and its appeal to global investors, underscores the lucrative opportunities available to property investors.

The Dubai real estate market in 2024 has witnessed a surge in activity, driven by the UAE’s robust economic growth, projected at 4.5 per cent in 2024. This growth is underpinned by the diversification of the economy, with key sectors like tourism, logistics, and finance contributing significantly.

Furthermore, Dubai has seen a significant influx of foreign investment, particularly in the luxury segment, driven by relaxed ownership laws and attractive investment opportunities.

Data from Property Monitor reveals a 30 per cent year-on-year increase in property sector transaction volume in the first half of 2024. May 2024 marked a record-breaking month for sales transactions, reaching Dhs47.3bn. This surge in activity has translated into price appreciation across various segments, with both apartments and villas experiencing significant increases.

Flexible payment plans make property ownership more accessible to a wider range of investors.

These plans allow buyers to spread the cost of their investment over several years, reducing the initial financial burden and making it easier to realize the benefits of Dubai’s thriving real estate market. By offering such attractive payment options, Samana Developers is driving growth and development in the city, contributing to its continued success as a global real estate hub. The company has successfully achieved a 400 per cent surge in sales in 2024, this trend is also expected to continue throughout 2025.

The positive momentum in the Dubai real estate market is expected to continue in 2025, with home prices anticipated to rise by 8 per cent and luxury properties by 5 per cent. This growth is primarily driven by strong demand exceeding supply. Projections indicate a demand for 30,000 to 57,000 homes, while only 53,000 are expected to be delivered.

The luxury market is witnessing even stronger demand, with eighty-three properties over $10m sold in 2024 and demand outpacing supply by 65 per cent.

The focus in 2025 will shift towards sustainability and eco-friendly practices. Developers need to incorporate green building technologies and prioritise energy efficiency in their

projects. Additionally, the integration of technology will transform various aspects of the real estate sector, from property management to customer experience.