- Dubai’s real estate sector has long been a hot topic in the property market, with its rapid growth and sustainable developments, but the market has begun to cool down at the close of 2023.
- The real estate market in Dubai has been characterised by continuous price increases, but analysts have noted a potential reversal in the market cycle.
- Wealthy individuals who wish to purchase or rent real estate in Dubai should use safe and reliable modes of money transfer.
The real estate sector in Dubai has been experiencing a significant boom in recent years, with prices skyrocketing and demand for properties soaring. A new report suggests that this trend may be coming to an end.
According to analysts Sapna Jagtiani and Tatjana Lescova, prices in Dubai’s real estate market growth is expected to slow over the next 12 to 18 months.
While a market disruption is not anticipated, the report predicts a modest expansion of 5% to 7% in the sector, which leaves room for more market activity from high net-worth individuals (HNWIs) migrating to the UAE.
International HNWIs wishing to purchase or rent a luxury property in Dubai should research the currency exchange rates before making transactions.
Apartments prices currently sit at 10% to 20% below previous peaks from 2023, according to experts, which can be attributed to a historical oversupply in the apartment segment. Nonetheless, the overall performance of Dubai’s real estate sector remains impressive, with double-digit price increases and record-high pre-sales.
One of the driving factors is the strong demand from foreign investors, particularly HNWIs, who have contributed to the sustained demand for prime properties in the city. Additionally, strong pre-sales in 2023 have contradicted previous predictions of market stabilisation.
Dubai has proven to be relatively immune to external pressures from the sluggish global economy, displaying a similar strength that it exhibited during the Covid-19 pandemic.
Furthermore, Dubai benefits from a diversified economy that has performed well post-pandemic, with anticipated average economic growth of 3% over 2023-2024. These favourable economic conditions are expected to strengthen the government’s fiscal position and contribute to a decline in debt burden as a share of GDP.
On the other hand, the analysts forecast a period of subpar global growth as heavily indebted economies grapple with higher-for-longer interest rates. The real estate sector may face a slowdown in the next 12 to 18 months after a strong performance in 2023.
These projections are supported by the population growth of over 2% in Dubai, reaching 3.6 million residents, and the increasing number of international visitors.
With prices on apartments set to dip, bargains will be present in the market, and this presents a unique opportunity for HNWIs looking to invest in Dubai real estate.
HNWIs should use safe international money transfer options when making global business transfers abroad.
These wealthy individuals can use our online money transfer comparison tool to find the best exchange rates.
