The course of Dubai’s real estate sector transformation over the next 10 years

During the AB UAE conference that took place on 26th of January, real estate giants discussed the performance of Dubai’s real estate sector and why it is worth investing in the city. According to Ziad El Chaar, who is DarGlobal’s chief executive officer and vice chairman, real estate acquisition in the emirate is always a solid decision, especially for those who are thinking of choosing Dubai as their primary home. Ellington Properties’ co-founder and managing director, Robert Booth, agreed with Ziad El Chaar’s comment and also said that the emirate continues to improve, along with the real estate industry, which is highly likely to thrive even more.

Mohammed Rashed, Nakheel’s chief projects officer, was also present at the AB UAE conference and said that Dubai’s popularity as a real estate destination is attributed to its safety, various government initiatives and its beneficial business environment.

According to the real estate leaders mentioned above, in 10 years, the emirate’s real estate sector will be totally transformed judging by its current pace and trends. One of the main driving forces of this sector are the tax-free schemes that are highly attractive for HNWIs. Robert Booth of Ellington Properties is expecting that in a decade there will be up to 40 million visitors to Dubai and that Palm Jebel Ali, which is nearing completion, will be populated.

Mohammed Rashed of Nakheel, mentioned the Dubai Economic Agenda 33, thanks to which Dubai is set to become the world’s best city. According to Hadi Badri, CEO, Economic Development, Dubai Department of Economy and Tourism, the D33 plan will help the emirate to double its GDP from AED 400B (USD 108.9B) to AED 800B (USD 217.8B). In line with the agenda, there will be 100 transformative projects launched, which will enhance the quality of life for everyone working and living in Dubai.

The Dubai Economic Agenda 33 has an economic target of AED 32T (USD 8,7T), with the emirate entering the top 4 financial hubs worldwide during the next 10 years. Dubai is also expected to attract over AED 650B (USD 191B) in FDI and add 400 cities as trading partners. One of the essential parts of the newly presented plan is to make 30 companies unicorns over the next 10 years. Overall, the strategy is based on new ideas, innovations and the latest technologies, marking a new chapter in Dubai’s development.

The performance of the local real estate market is clearly illustrating a strong demand from foreign and local buyers, as 2022 recorded AED 528B (USD 143,8B) worth of transactions, according to the Dubai Media Office. Compared to 2021, this is a tremendous increase of a whopping 76.5%. The emirate has been witnessing particularly high numbers in real estate transactions since the COVID-19 pandemic thanks to efficient measures by the UAE government to battle the virus.

Based on the Dubai Land Department (DLD) statistics, Business Bay was the top-performing area last year, with a total of 10,853 recorded transactions. One of the most distinctive launches in Business Bay is The Ritz-Carlton Residences by Khamas Group Investments & Co in collaboration with Marriott International. The upcoming ultra-luxury complex offers a collection of fully-furnished exclusive apartments, in addition to 2 opulent penthouses and 1 palatial duplex villa with exquisite interiors by Ana Moussinet.