The rising population in Dubai spurs property market growth

The property market growth, which has seen the launch of many new residential projects and an increased supply of housing units, has been spurred on by the rising population in Dubai. In 2022, the population in Dubai officially totalled 3,550,000. And this number continues to increase at a rapid pace due to the large number of expats making the emirate their second home.

Well-known development companies have launched new residential complexes across the emirate to cater to the growing population. These include Mama Residences Dubai, Cavalli Couture, Dubai Ritz-Carlton Residences, Safa One and Safa Two Towers, as well as a newly launched USD 5.4B community by Azizi Developments, among many others. In addition, several more residential projects are under development and are ready to be launched in the upcoming months. Such state of affairs has allowed foreign nationals to enter the market and benefit from the ever-growing real estate in the emirate. There is also infrastructure development on a larger scale in order to accommodate a growing population in Dubai.

The main reasons why the emirate is welcoming more and more expats every year include the high level of safety, great opportunities to grow as a professional or an entrepreneur, as well as the luxury lifestyle. The recent visa reforms, which have allowed foreign investors to take advantage of additional benefits when acquiring real estate in the emirate, have also had a positive impact on the real estate market.

Against the background of the growing number of expats who have made Dubai their second home, there is also a rise in the rental market. In 2022, the average rental price increased by almost 27%. An increase of 27.1% was recorded in the villa segment and by 24.9% – in apartments. According to experts, these indicators are expected to rise further in 2023.