Dubai’s Real Estate Market: 2024 Forecast – BNN Breaking

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Dubai’s Real Estate Market: Record Surges and Predicted Cooling

As the year draws to a close, Dubai’s vibrant real estate market is poised for a shift in dynamics. Analysts predict a potential cooling period in 2024, driven by limitations in purchasing power and an emerging trend toward smaller properties. Yet, the market’s current vigor tells a different story: A tale of record-breaking surges and strategic property trading. At the heart of this narrative are Dina Habib and Karim Yusuf, an Egyptian couple planning to move within Dubai just nine months after purchasing their first property.

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A Market in Motion

The real estate sector in Dubai is a whirlwind of high-volume transactions and skyrocketing values. It’s a market shaped by upcoming projects poised to redefine the UAE over the next decade, and a robust performance in tourism and real estate as highlighted by the Central Bank of the UAE. In this landscape, sellers find opportunities in the booming property market, with sought-after areas like Jumeirah Village Circle, Dubai Marina, Business Bay, and others becoming hot spots for property purchases.

The Off-Plan Advantage

Ready properties in Dubai are at a price disadvantage compared to off-plan sales from developers. The price gap, in some locations, is as high as 50-60%. This trend is driven by cautious end-user buyers and aggressive off-plan promotions by developers. However, industry experts believe that with the increase in supply, this price gap will eventually reduce, offering a more balanced market.

Indian Investments Surge

Dubai’s real estate market has also witnessed a surge in Foreign Direct Investments (FDI) from Indian investors. From 2020 to H1 2023, a total of $1.6 billion has been invested by Indian investors, with the first half of 2023 alone accounting for a significant portion of the total FDI. This trajectory reflects the mutually beneficial relationship between India and the UAE, further cemented by the signing of the Comprehensive Economic Partnership Agreement (CEPA) in 2022.

Looking Ahead: A Turning Point?

Despite the current boom, some analysts warn that 2024 could mark a turning point for the market. An expected delivery of about 40,000 properties next year, double the number in previous years, could potentially slow down market growth. Yet, in this market of contrasts and rapid changes, Dina Habib and Karim Yusuf are selling their two-bedroom apartment at a 26% profit, hoping to find a larger property for their family at the same price or less. As we move into 2024, only time will tell the true tale of Dubai’s real estate market.

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