Dubai Real Estate Booms with Stable Growth: Property Speculation Below 20%, Says DLD
Dubai Real Estate Market: Growth, Stability, and Future Prospects
Dubai’s real estate sector continues to thrive, with transactions reaching over 163,000 valued at Dh544 billion ($148 billion) in the first nine months of this year, according to the Dubai Land Department (DLD). Investments exceeded Dh376 billion, driven by robust infrastructure and a strong regulatory framework.
Stability in Property Speculation
The DLD reported that property speculation remains stable, below 20%, ensuring sustainable investment trends. This is a significant improvement from the volatile 2007-2008 period, thanks to stricter regulations like higher loan-to-value ratios and escrow systems, according to Matthew Green from CBRE.
Record-Breaking Growth
In the third quarter, residential transactions hit Dh139.8 billion, up 32.5% year-on-year, with off-plan sales growing 30% annually. Over 200,000 new units have launched since last year, reflecting high demand for new properties. However, experts caution that the growing disparity between ready and off-plan sales needs monitoring to maintain balance in the market.
Strategy for 2033
Dubai’s recently launched Real Estate Sector Strategy 2033 aims to double the sector’s GDP contribution to Dh73 billion and boost transactions to Dh1 trillion. Key initiatives include enhancing transparency, leveraging AI and data for better forecasting, and increasing homeownership to 33%.
Population Growth Driving Demand
Visa reforms, including the golden visa, alongside Dubai’s low tax environment and rising population, are driving demand for property. Rental and sales prices have surged by 20% year-on-year, reflecting limited supply and strong market demand.
Future Supply Trends
Although residential supply is expected to grow significantly by 2026, delays in property deliveries could temporarily tighten the market, maintaining upward pressure on prices. S&P predicts the market will stabilize by 2026, with approximately 182,000 new units expected over 2025-2026.
Dubai’s real estate market remains a global investment hotspot, offering a blend of dynamic growth, regulatory stability, and long-term opportunities.