Dubai Property Market Forecast 2024

Why Should You Invest In Dubai Real Estate Market?

Dubai has become one of the favorite destinations for investors citing a lot of reasons. These factors ensure that the investors receive high ROI and investment returns. Know more about the factors in the section below.
 
Investor Friendly Policies

In lieu of attracting more demands from foreigners, the UAE government has allowed relaxations in the investment policies. The major policies include a simple registration process, less taxation, freehold ownership rights, and a dedicated real estate regulatory authority to protect investors' rights.

Tax-Free Properties

One of the significant advantages of investing in Dubai's real estate market is the absence of property and income taxes. Unlike other countries, UAE does not have a very elaborate tax policy for the real estate market. In the absence of investors who have been banking on the tax-free environment and enjoying a high return on investment.

High ROI

One of the major factors that has made Dubai the leading investment hub is its high ROI. Citing the high-end amenities, fully developed properties, and infrastructural developments are the major factors behind this. All of these factors have led to a constant uptick in Dubai’s real estate market. This is going to be a key driving factor for 2024 as well. Early forecasts suggest a high ROI between 6.9 to 7% from the property available in Dubai. 

Out of all, Dubai Marina, Jumeirah Village Circle, and DAMAC Hills are going to witness a surge in the ROI. Dubai Marina will witness an ROI equal to 7.2% whereas Jumeirah Village Circle is going to offer an ROI equal to 6.8% in the coming days.
 
Highly Developed Infrastructure

Dubai is mainly famous for its highly developed infrastructure like transportation, developed properties in posh localities etc. Some of the major architectural masterpieces that one can find here are Burj Khalifa, Al Bahar etc. In the same way, the properties and communities in Dubai are equipped with all the modern amenities thus promising a comfortable stay for the residents. 

Golden Visa

The UAE government has announced the Golden Visa program for ex-pats willing to invest in the country. This policy has benefited the country by attracting foreign investment. Due to this policy, now NRIs are able to invest in properties without any fear of ownership rights. The golden visa usually grants long-term residence permits to eligible investors, property owners, entrepreneurs, and highly skilled professionals. This program provides an added incentive for investors and offers long-term stability as well.

Interest Rate

Dubai’s real estate market has always shown an uptick in higher interest rates as compared to other global markets. These high-interest rates are good for investors who are seeking income via rental yields. Talking the same, the home loan interest in Dubai usually ranges between 3% to 5%. However, it is expected that the rates will be lowered in the coming days. This reduction in the interest rate is going to benefit the expats and residents of Dubai.
 
Demand of Villas

Dubai has seen a significant rise in the demand for high-end villas and posh apartments over the years. The same surge in demand will be available for the year 2024 as well. It is anticipated that there will be a surge of 2% in the number of people living in Dubai. Now, both citizens and ex-pats demand spacious and luxurious housing in upscale neighborhoods. To cater to the demands of housing, the developers have decided to plan around 10,000 new inventories for the coming year. This increased inventory will not only fulfill the rising demand but also act as a cap on the rising prices. It is estimated that the average price of the villa will be capped at $1.4 million.

Reduction in Inflation Rate

The UAE has been experiencing a decline in the overall inflation rate. This decline has a positive impact on the investment made in the real estate sector. This low inflation rate accounts for a stable price and lower cost of living. In turn, it has also managed to attract investors and stability along with long-term growth. The forecast suggests that the inflation rate in the property price will be only 4.5% for 2024 and 3% for the year 2025.
 

Can Global Factors Will Affect Dubai Real Estate Market In 2024?

Here are some global factors that are going to affect the Dubai real estate market in 2024:

1. Global Economic Conditions

The overall global economic environment can have a significant impact on the Dubai real estate market. Majorly factors like interest rates, inflation, global GDP growth, and geopolitical stability are going to affect the purchasing power and outlook of the investors. The more positive the global economic outlook, the more Dubai will attract international investors.

2. Oil Prices

The fluctuation in oil prices also affects Dubai’s economy and its real estate market. High oil prices are going to increase the spending and investment capacity of Dubai’s government. The surplus income will be invested in the real estate sector thus stimulating it positively. Whereas, lower oil prices may result in reduced government revenue and slower economic growth, which could have a dampening effect on the real estate market.

3. Exchange Rates

Dubai has a significant expatriate population, and currency exchange rates can influence the attractiveness of the real estate market for foreign investors. A strong local currency can make properties more expensive for international buyers thereby reducing the demand.

4. Regional Stability

Dubai's real estate market is heavily influenced by the major geopolitical factors and stability in the Middle East region. The increasing conflicts and political tension is going to cause a disruption in the global income thus impacting investor confidence and potentially affecting the real estate market in Dubai.

5. Government Policies

The policies implemented by the Dubai government like real estate regulations, infrastructure development, taxation, and foreign ownership restrictions, can significantly shape the market. Changes in government policies, whether aimed at stimulating or cooling the real estate sector, can have a direct impact on supply, demand, and investor sentiment.

Dubai Property Market Statistics For 2024

With the advent of new inventories in the market and investor-friendly policies, the forecast for the Dubai property market shows a positive sign. As per a report published by S&P Global, the GDP of the UAE is going to expand at the rate of 2% in 2024.  With that, there is also a possibility that the population will rise by 2% and the prices will rise by more than 60%. 
 

Conclusion

Summing up, the Dubai Property market in 2024 looks promising for investors. With investor-friendly policies, tax-free properties, a highly developed infrastructure, and the introduction of the Golden Visa program, Dubai continues to attract global investors. The overall outlook for the Dubai real estate market in 2024 appears favorable for profitable and secure investment opportunities. If you are willing to invest in Dubai in the coming days then you can connect with Dubai Housing for expert advice.