Dubai’s real estate market is undergoing significant developments, with over 290,000 residential units currently under construction, expanding the city’s housing inventory. This surge in new constructions reflects rising demand driven by population growth and strong economic activity, potentially affecting price and rental market conditions.

Despite this growth, the secondary market has seen a decline in home sales values, with a reported 5% decrease in the second quarter. This trend highlights a preference shift towards newly built properties, perceived to offer better rental income potential and modern amenities, drawing buyers away from older homes.

Overall, the market outlook remains positive, supported by government initiatives aimed at stimulating investment and ensuring economic stability. These efforts include incentives for foreign investors and strategic urban planning, all contributing to a favorable investment environment. This positive momentum in the property market has been reflected in the Dubai stock market, which has shown positive performance in the real estate sector over the last few weeks, with further gains expected ahead.

Recent developments, such as Elie Saab’s luxury residential projects in Ras Al Khaimah and Danube Properties’ expansions into Abu Dhabi and Ras Al Khaimah, exhibit market confidence. Additionally, milestones like ZāZEN Properties completing the UAE’s first LEED Gold-certified residential project, and MS Homes launching Iluka Residences in Dubai Islands, confirm growth in the sector. Azizi’s partnerships with Unigulf on projects like Azizi Venice and Riviera further contribute to the positive outlook of the local property market.

Real Estate market comment on behalf of Michael Gelpke, CEO at Glam Properties