Dubai's real estate market is set for significant expansion in property ownership, driven by the introduction of the Real Estate Strategy 2033. This initiative aims to significantly boost transactions, enhance market transparency, and make housing more affordable.
The strategy seeks to raise real estate transactions to AED 1 trillion by 2030, compared to AED 634 billion in 2023, and aims to boost the sector's contribution to AED 73 billion. Another major goal is increasing the homeownership rate to 33%, focusing on affordability and attracting global interest.
Experts in the industry are optimistic that Dubai’s investor and resident-friendly policies will motivate more people to purchase property. These policies, along with new initiatives and increased transparency, will not only encourage ownership but also promote affordable housing, allowing tenants to make the leap to ownership.
Increase in Property Ownership
Prathyusha Gurrapu, head of research at Cushman & Wakefield Core, pointed out that the new strategy is set to improve accessibility to property ownership. This change is expected to benefit end-users, encourage long-term investments, and strengthen economic stability. She highlighted the role of better financing options and mortgage products in making ownership more achievable.
Ari Kesisoglu, president of Property Finder, also acknowledged the outburst in property ownership seen in recent years, which aligns well with Dubai’s strategic vision. He said that strategic investments, coupled with advancements in technology and transparency, will build trust and support sustainable growth in the real estate market.
Kesisoglu also highlighted an increase in buy-to-live transactions, with rising mortgage activity suggesting a trend toward owner-occupancy, contributing to a healthier long-term market.
Focus on Affordable Housing and Market Growth
The Real Estate Strategy 2033 places a strong emphasis on affordable housing, crucial for the broader economy as Dubai continues to grow. The availability of ample land offers a unique chance for large-scale affordable housing projects, which could benefit both residents and the broader real estate sector.
As property prices in Dubai rise, an increasing number of tenants are turning to ownership as a viable solution, especially given the introduction of lower interest rates and various financing alternatives. With rental costs climbing, the demand for affordable housing is expected to rise, aligned with the city’s focus on making ownership more accessible.
Original article reference: The Munsif Daily.
