Dubai’s real estate market continues to thrive, with developers dismissing any concerns over oversupply despite rising property prices. Industry experts emphasize that sustained demand is driving the market, with no signs of excess supply.
Strong Demand Keeps Prices Rising
Real estate developers in Dubai are confident that the market remains robust. According to Issa Abdul Rahman, CEO of Kasco Developments, the consistent increase in property prices is clear evidence that the market is far from oversaturated. “If there were an oversupply, prices wouldn’t be rising,” he notes. As demand persists, property prices across prime locations such as Palm Jebel Ali, Business Bay, Downtown Dubai, and Dubai Marina are reaching all-time highs.
Record-Breaking Transactions
In October 2024, Dubai’s property market saw its highest number of sales transactions in history, with over 20,460 units sold, marking an 82% year-on-year increase. Developers like Firas Al Msaddi, CEO of fäm Properties, observe that despite an all-time high supply, the strong demand continues to support price increases. Villas and townhouses have experienced a remarkable 75% surge in average property prices, while apartments have increased by 55% year-on-year, according to the Allsopp & Allsopp Market Snapshot.
Long-Term Investment Opportunity
While some may view the rapid rise in property prices as unsustainable, experts like Lewis Allsopp, Chairman of Allsopp & Allsopp, believe this presents a significant opportunity for investors. Allsopp stresses the importance of holding onto property for the long term to benefit from capital appreciation and equity growth.
Focus on Emerging Areas
Areas like Al Jadaf have seen significant price increases, with a 40% rise in property prices in 2024. New projects in Dubai Islands are also attracting attention from investors. Abdul Rahman highlights that international buyers, especially from Europe, are flocking to Dubai for its safety, stability, and favorable legal framework. Developers are continuing to invest heavily, with projects in Business Bay and Al Jadaf, reflecting the growing demand and confidence in Dubai’s property market.
Conclusion
The Dubai property market is thriving with strong demand, continued price growth, and international interest. Developers remain confident that despite an influx of new developments, the market is poised for long-term success. For investors, timing the market may not be as important as simply investing in it, as holding property over time offers significant potential for appreciation.
