RISING SKYSCRAPERS:
A DEEP DIVE INTO DUBAI'S REAL ESTATE MARKET

In the past few decades, the city of Dubai has risen as a shimmering oasis in the Arabian Desert. Renowned for its architectural wonders, lavish lifestyle, and booming economy, Dubai has attracted investors and expatriates from around the world. One sector that has played a crucial role in shaping the city's skyline and contributing to its rapid growth is the real estate market, which has received attention globally for its impressive developments and fast growth.

Over six decades ago in 1960, the Dubai government established the Dubai Land Department. Throughout the 1980s and 1990s, Dubai's property market rode the wave of prosperity generated by its blooming oil industry. Heavy investments were made in the real estate sector, laying the foundation for its transformation into a thriving global market. In the early 2000s, the Dubai government launched a series of ambitious real estate development projects. Among these were Burj Khalifa, the world's tallest building, Palm Jumeirah, one of the largest man-made islands and Dubai mall, the world's largest shopping mall. The projects aimed to cement Dubai's position as an international investment and tourism hub, attracting people from all over the globe. In the years that followed, Dubai's real estate market witnessed a remarkable boom, with soaring property prices and a surge in the development of new construction projects. Nevertheless, the boom was followed by a bust in 2009, caused by the global financial crisis and a significant drop in oil prices.

Since its downturn, Dubai's real estate market has experienced a remarkable resurgence and is currently undergoing a strong period of growth. Despite facing numerous challenges, including the impact of the global pandemic, the market has demonstrated its resilience. The city has proven to be an attractive destination for foreign investment, with both residential and commercial properties experiencing solid demand. Factors like a growing population, booming tourism sector and a highly favorable business environment can describe the recent upswing. The exceptional and continuous growth in the real estate market is also largely attributed to the governmet's unwavering dedication to maintaining economic stability and implementing investor-friendly policies. The absence of property taxes, low registration fees and compliant regulations, have supported an attractive environment for both local and international investors. The favorable business climate has promoted and ensured a steady flow of investments into the market.

The real estate market is expected to sustain its upward trajectory, with sustainability and innovation emerging as focal points for future growth. UAE’s leading real estate portal, Bayut, released its comprehensive sales and rental market report for the first half of 2023. The numbers revealed that the property prices in Dubai have continued to surge, driven by robust demand from both local and global property seekers. According to Unique Properties, Dubai recorded sales transactions worth $48.2B during the first half of 2023, exceeding the total annual sales recorded each year in Dubai from 2009 to 2021. The month of June recorded double-digit growth with a volume increase of 17.78% year over year, and a transaction value that surged 34.1%, marking the highest value in a decade.

Dubai continues to cement its position as a premier destination for both residential and commercial endeavors. Despite the strong performance, certain segments are expected to experience a slowed growth, due to factors such as rising interest rates, inflated housing costs, and the weakening of the US Dollar. Dubai's real estate market has undergone a remarkable journey of growth and transformation. Starting from nothing, it has risen to become a global powerhouse, drawing in investors and buyers from all over the globe. The journey owes its success to the combination of visionary leadership, investor-friendly policies, infrastructure development, and a commitment to sustainability. As Dubai continues to rise with its iconic skyscrapers, its real estate market stands as a testament to vision and resilience.