Growing Demand and Stability

Dubai's real estate market is expected to remain strong, driven by its strategic location, business-friendly environment, and attractive lifestyle. The city's flexible immigration laws contribute to a 1.46% annual population growth, while improved infrastructure and growing master communities attract investment.

Dubai's vision for 2040 aims to expand hotel and tourism development space by 134% and increase nature reserves to cover 60% of the Emirate. These efforts make the city more appealing for residential and commercial property investments.

Platforms like Asette simplify off-plan property investing by providing comprehensive information on new property launches, developer expertise, visa requirements, mortgage options, and transparent ROI calculations.

Data-driven Decision Making

The real estate industry is embracing data-driven decision making as digitalization increases. Companies like Asette use unbiased technology to provide transparent ROI calculations, analyzing various data points such as market trends, rental yields, and capital appreciation. This enables investors to make informed decisions aligned with their goals.

In the first half of 2023, Dubai witnessed a significant growth in residential property sales revenue, with a 46% increase compared to the same period in 2022. This continued demand has driven property prices and rents higher.

For example, areas which are not that obvious for the investors performed very well, making them an ideal investment for more regular properties. Where a 2-bedroom apartment in Jumeirah Village Triangle experienced a price appreciation of 19% from 2022 to the first half of 2023, resulting in a gross yield of 7.3%. This makes it an attractive investment opportunity. More upscale neighbourhoods like Emirates Hills have seen a growth of around 15% in the past year.

Regulatory Environment and Investor Protection

The UAE has made significant strides in enhancing its regulatory environment to protect investors and ensure market transparency. Understanding local regulations and protocols is crucial for both local and international investors. Asette assists investors in staying protected and informed by providing valuable insights into the local real estate market and helping them navigate regulations.

The government's commitment to transparency and investor protection instils confidence in the market. In 2017, Sheikh Mohammed Bin Rashid Al Maktoum introduced law No:19, which protects property investors. It mandates that if a developer fails to initiate construction or if the project is cancelled by the Real Estate Regulatory Agency (RERA), the developer must refund the entire amount paid by purchasers. This law ensures fairness and accountability in the real estate sector.

Generational change - who are the investors in the future?

In 2022, digitally savvy millennials aged 27 to 42 dominated Dubai’s real estate market, acquiring 49% of all residential off-plan properties. This millennial cohort, known for their adeptness in digital trading and investing, is projected to inherit $70 Trillion within the Middle East over the next 30 years. Responding to their preferences, property developers have begun tailoring buildings to cater specifically to this demographic.

For instance, in Dubai’s Business Bay, a building has been designed to suit millennials, offering studios, one-bedroom apartment, co-working spaces, community event management and trendy cafes in close proximity. The industry adaption demonstrates a keen awareness of and response to the needs of this influential investor segment.

Conclusion

In conclusion, the future of the Dubai real estate market holds great promise, as indicated by available data and trends provided by the Asette team. The industry's trajectory is shaped by growing demand, stability, data-driven decision-making, a favorable regulatory environment, and digital transformation. Platforms like Asette are revolutionizing property investing, offering unbiased, AI-driven options for investors. Embracing the digital revolution and redefining Dubai real estate with data-driven innovation will pave the way for success in the real estate industry.

(About the author: Leena Vesterinen is the founder and CEO of Asette, a prop-tech business founded in 2022 with the goal of simplifying property investment in the UAE)