Dubai, UAE – Dubai’s real estate scene shows no sign of slowing down, with 2024 set to be another record year in terms of sales figures and property values, according to local real estate companies.
The growing demand for real estate, especially in the luxury sector, is driving up prices not just for homes, but everything else in the city – just as the UAE is set to emerge as the world’s top wealth magnet for the third year in a row.
For Hussain Sajwani, chairman of Dubai real estate giant Damac, this means good news and bad news.
“What worries me a little bit about Dubai is that it’s becoming an expensive city, and I’ve said this in the past, that Dubai is becoming an expensive city,” Sajwani told CNBC’s Dan Murphy from Riyadh on Tuesday. “Because whenever there’s a lot of demand, especially when talented people come in, regular people, they create more demand.”
“Today it is difficult to get a seat in a school… Of course businesses will raise prices, inflation will rise, and Dubai will become an expensive city,” the chairman said. “I hope the government will find ways and means. It is not easy to find ways and means when there is a constant influx of people into the city.”
The latest Dubai property market figures tell a story of growing demand. In July 2024, property sales reached Dh49.6 billion ($13.5 billion), up 31.63% from the same period in 2023, according to local real estate brokerage Elite Merit Real Estate.
“The first half of 2024 alone saw over 43,000 real estate transactions worth nearly AED 122.9 billion, a 30% increase year-on-year,” the company’s report, released on September 10, said, adding that the growth was partly due to “rapid absorption of new inventory.” The report estimates that around 80% of units launched since 2022 have already been sold.
Aerial view of the city and skyscraper at sunset in Dubai Marina.
Lu Shaojie | Moment | Getty Images
“The Dubai real estate market is doing very well, and I think we will continue to do so, because the demand in Europe is amazing. Everyone wants to go to Dubai, from the taxi driver to the waiter to the businessman… Dubai is now attracting a lot of wealthy people, as well as a lot of talented people. It is growing at a different level than it was before Covid,” Sajwani said.
The Damac founder pointed to how the Covid-19 period has boosted Dubai’s popularity as a place to live: While much of the world remained in lockdown, the emirate encouraged tourism and attracted new residents with the help of visas for remote workers and entrepreneurs.
“Dubai is a global city today by all standards, and it attracts a lot of talent and a lot of companies, and we will continue to grow,” Sajwani added.
Dubai has experienced a volatile boom-and-bust cycle in the past, most notably during the 2008-09 crisis, when the UAE’s real estate market collapsed and many investors were forced to default on their debts. Asked if he was worried about a repeat of a similar cycle, Sajwani said he was confident the system was different now.
Asked if Dubai was more stable now, Sajwani replied: “100%.”
“One of the main reasons for this is that the regulations that the Dubai government put in place after the financial crisis in 2008-09 were very good regulations. They are very strict on developers, clients and zoning. So these regulations help – not everyone can just come in and launch a project… There is a very strict escrow system, so clients’ money is very much protected, and that makes the market very efficient.”
Correction: The title of this article has been updated to reflect Hussain Sajwani's position as Damac's chairman.
