With no significant risk of oversupply, Dubai’s property market is poised for steady growth over the next several years despite the many projects launched in recent years. High demand from investors is expected to balance out the influx of new properties, according to Rizwan Sajan, founder and chairman of Danube Properties.
Sajan explained that there is a large volume of properties being introduced, but at the same time, they are seeing a surge in investors wanting to establish a second home in Dubai. He also pointed to the upcoming gaming resort in Ras Al Khaimah as a key factor that will drive tourism, and by extension, demand for property in Dubai.
When this gaming resort opens, it’s likely to cause a massive increase in tourism. Dubai will need a significant amount of properties, including short-term rentals, to accommodate this influx. He also anticipates that the new gaming facilities will attract visitors who will prefer staying in Dubai, where a larger number of properties and services will be available.
The Wynn Al Marjan Island project, a collaboration with Wynn Resorts from the U.S., is progressing rapidly and is expected to open by 2027. This will be the region’s first integrated gaming resort. Additionally, U.S.-based MGM Resorts announced plans to develop a gaming resort in Dubai, further enhancing the city’s appeal to international tourists.
Dubai’s real estate market has been particularly active since the pandemic, with a wave of new projects being launched, especially throughout 2023 and 2024. Local developers, along with foreign entrants, have added both large-scale and smaller developments to the market. According to Cavendish Maxwell’s Property Monitor, developers launched more than one project per day in the first quarter of 2024, with nearly 30 projects introducing 10,000 units in March alone.
Sajan remains confident that Dubai remains an affordable option compared to global cities. Even though prices have gone up, Dubai’s property prices are still much lower than those in major cities across the world. A recent study found that the average price per sq.ft. in Dubai is $800, compared to $4,000 in Hong Kong and $2,600 in New York.
Original article reference: Khaleej Times.
