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The emirate has outpaced traditional luxury real estate markets in terms of price appreciation, investor interest, and the volume of projects
Branded residences in Dubai command a 42 per cent premium, on average, over non-branded properties as institutional investors are also snapping up these luxury properties.
“Dubai’s real estate market is undergoing a fundamental shift. Branded residences are no longer a niche segment — they have become a core asset class, attracting institutional investors and setting new price benchmarks,” said Elias Hannoush, CEO of Morgan’s International Realty.
The luxury real estate brokerage and property investment firm’s data showed that branded residence prices averaged Dh3,288 per sqft compared to Dh2,321 per sqft for the non-branded units in Dubai at the end of 2024.
At the top of the market is Bvlgari, located on Jumeirah Bay Island, with the highest price per sqft at Dh10,668. Other luxury developments follow closely behind, including Atlantis Resorts (Dh9,387), Dorchester Collection (Dh7,539), Baccarat (Dh7,211), and Four Seasons Hotels and Resorts (Dh6,829).
Armani (Dh5,736), One & Only Resorts (Dh5,155), Six Senses Hotels & Resorts (Dh4,879), Bugatti (Dh4,682) and The Ritz-Carlton Hotel (Dh4,342) rounded off the top 10 properties.
Hannoush pointed out that Dubai has outpaced traditional luxury real estate markets in terms of price appreciation, investor interest, and the volume of projects.
According to Savills, Dubai retains its place as the most active market internationally for branded residences; it is followed by hotspots in Miami, New York, Phuket and London.
Sales of branded units in Dubai surged 48 per cent in the second half of 2024, reaching 7,628 compared to 5,153 in the same period in 2023.
Dubai currently boasts 132 branded residences with 43,085 units, including one that sold for a record Dh275 million. The highest price for the branded residence reached Dh17,235 per sqft.
Additionally, Dubai has 1,282 ready-branded units valued at Dh6.88 billion, with 6,346 more currently under construction, worth Dh24.9 billion.
“Pro-investor policies, world-class infrastructure, and a thriving luxury real estate market have fuelled Dubai’s growth into the global hub for branded residences.
“A tax-free economy, long-term residency incentives, and rising demand from international investors have driven rapid expansion, surpassing traditional luxury hubs and solidifying Dubai’s position as the premier destination for branded residences,” he added.
Hannoush noted that branded residences create a winning formula for all stakeholders. For developers, they offer higher prices, faster sell-outs, access to elite buyers, and enhanced credibility with global appeal.
For buyers, they provide superior design, exceptional service and management, stronger capital appreciation, better rental returns, and an exclusive lifestyle with hassle-free ownership. For brands, these properties bring new revenue opportunities and market expansion.
We take a look at how the emirate’s surging market matches up to other cities worldwide
It’s no secret that the property market in Dubai is in good health, with soaring house prices and rising rents showing no sign of abatement. But how does it compare to other parts of the world?
Dh1 million ($270,000) can buy you a two-bedroom apartment with private pool, gym access and a parking space in Dubai – but what can it get you elsewhere?
While many residents might long for property prices of years gone by, experts told The National that Dubai still offers significant value for money, particularly when compared to some of the more established global markets.
“In Dubai, you can get a nice one-bedroom apartment [for Dh1 million] or, if you go further out, you can get a two-bedroom in buildings with swimming pool access and parking spaces,” said Ben Blackwell, area manager at estate agency Betterhomes. “You’d just about get a parking space in London for the same money. Or else you’d have to be living way out on the outskirts to afford something similar for that price.”
The National reported last month how property prices were only going to increase, because demand was still exceeding supply, a report from ValuStrat management consultancy found. The same report said property prices for villas had increased by more than 31 per cent in 2024, while the price of apartments had increased by almost 24 per cent during the same period.
Cost of property around the world
Point size representing dirhams per square foot
Contrasting fortunes
Setting Dubai against other more-established property markets is hardly a like-for-like comparison, however, said another expert.
“You can’t directly compare them, each offers different things and the property market in Dubai has been operating for around 23 years, while it has been around for hundreds of years in London,” said Mario Volpi, head of brokerage at Novvi Properties. “What you can say is as an emerging market you get much more bang for your buck [in Dubai]. It’s very, very good value for money, despite three to four years of house prices inflating.”
It is clear that properties in Dubai are not getting cheaper but it still has some way to go to match the prices of some other established markets. The average cost of property in the emirate is Dh1,608.64 per sq ft, the Global Property Guide website suggests.
This is some way off the cost in Hong Kong, which is Dh8,046.88, while those living in Paris can expect to pay Dh3,527.43 and in London Dh3,447.62. If you are in New York, it is Dh1,862.06 and in Tokyo Dh1,718.82.
Mr Blackwell is adamant Dubai still offers value for money, especially compared to other markets across the world.
“It used to be the case, around 10 years ago, that the property market in Dubai might still have been seen as a gamble but that’s not the case any more,” he said. “Now it’s an established place, with more and more companies moving here and many international brands opting for Dubai as their headquarters. It’s a much more mature market and we’re seeing a change from it being completely investor based to end-user based. Although it is a lot more expensive than it was five to 10 years ago, comparably it still offers fantastic value and you can consider particularly the western markets.”
He said the difference between what you get in Dubai and in his hometown of London was clear. “It’s night and day what you get in London compared to Dubai,” said Mr Blackwell. “London is a massive commuter market where people are travelling from all over, which means people are having to go further and further out to get value for their money. To get something similar to the same price as what you would get in Dubai, you would have to be prepared for an extraordinarily long commute.”
Many other popular cities do have apartments on offer for about Dh1 million or less but they are likely to be smaller and/or less luxurious than those in Dubai for the same price.
In Hong Kong, this is enough for a 212 sq ft apartment in a tower block that many buyers would consider to be at the bottom end of the market in terms of comfort.
Buyers in Tokyo could secure at 347 sq ft one-bedroom apartment in the Bunkyo-Ku neighbourhood a short commute north-west of the centre. It is in much better condition than an apartment for the same money in Hong Kong.
In New York, for about the same amount buyers have the option of a newly decorated 950 sq ft two-bedroom apartment in a gated community in the Bronx, a borough sometimes regarded as one of the city’s less safe areas. For about a fifth of the size, someone with Dh1 million in their pocket seeking a home in Paris could choose a compact 205 sq ft eighth-floor one-bedroom apartment in the 15th arrondissement.
Quality concerns
Mr Blackwell was also quick to dispel suggestions that properties in the region were inferior in terms of durability compared to more mature markets. “The reason why people feel buildings age quicker here is because there are so many new buildings being constructed, so anything that’s even just five years old might suddenly feel old,” he said. “The truth is you have some fantastic construction companies here [in Dubai] that are delivering high-quality products.”
Investors told The National last month that the property market in Dubai was “on steroids”. The emirate’s real estate sector has maintained robust growth momentum in recent years, recording deals worth Dh761 billion ($207.2 billion) last year, up 20 per cent annually. The boom is aided by government initiatives including residency permits for retired and remote workers, an expanded golden visa programme, as well as strong economic growth in the UAE.
Global buyers
It is not only London that Dubai measures well against. “Dubai offers great value compared to cities like London, Tokyo and New York for a few key reasons,” said Lewis Allsopp, chairman at Allsopp & Allsopp estate agency. “Being a relatively new city, Dubai was planned for efficiency and has benefitted from modern urban infrastructure, well-organised communities and highly desirable living spaces.”
Another factor in Dubai’s desirability was the likelihood of making a profit on your investment, he added. “As an investment, your property in Dubai is more likely to increase in value than the UK due to the buoyant market in the UAE,” said Mr Allsopp. “Dubai’s business-friendly environment with minimal taxation and no property taxes makes it a highly cost-effective choice for homeowners and businesses alike. Simply put, you get for your money in Dubai.”
According to Kelcie Sellers, an associate director at the property agent Savills and a member of the company’s World Research Consultancy, “Dubai represents incredible value” compared to cities such as San Francisco, London, Paris, Hong Kong and Tokyo.
She said the emirate’s prices provided better value because the city was “much less space-constrained” and had “a lot more room for growth” than, for example, Hong Kong, New York or Tokyo. According to Savills’ data, prices per square foot in Hong Kong are about four times those of Dubai, while central London is more than twice as expensive, Tokyo is nearly 130 per cent more costly and Paris twice as much.
The company reported that average capital values in Dubai increased 6.8 per cent last year. Only a handful of major world cities – Madrid, Barcelona, Tokyo, Amsterdam and Seoul – recorded percentage increases as high as those in Dubai.
“We’ve been seeing constantly elevated capital value growth in Dubai over the past couple of years, even though there’s room for growth, and we’re seeing supply being added relatively frequently,” Ms Sellers said. “What we’re seeing when we speak to our teams out there is there’s an incredible amount of demand for residential property out there.
“When we’re talking about Dubai, we’re seeing very global buyers. There are buyers from across Europe, North America, Asia-Pac [Asia-Pacific]. It’s seen as this destination that’s been on everyone’s list for the last couple of years.”
In Savills’ World Cities Prime Residential report there are only a few major cities – Barcelona, Cape Town and Kuala Lumpur – where properties are cheaper than in Dubai. Of these, Barcelona is only about 6 per cent cheaper than Dubai, Ms Sellers said, while Cape Town and Kuala Lumpur may be more regional markets but are nevertheless “growing quickly”.
Format lowers individual financial burden and provides more people access to high-value assets
UAE resident Tim Prins, 28, from the Netherlands, signed up with fractional property investment platform Stake two years ago and invested €113 (Dh500 then) in a property.
Fractional ownership is a method in which several unrelated parties can share in, and reduce the risk of, ownership of a high-value tangible asset, usually such as real estate, a jet or yacht.
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Carrying out fractional property investment through a formal company structure generally offers more legal protection. Getty Images
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More investors turn to fractional ownership to enter booming Dubai property market Format lowers individual financial burden and provides more people access to high-value assets Deepthi Nair Deepthi Nair April 01, 2025
UAE resident Tim Prins, 28, from the Netherlands, signed up with fractional property investment platform Stake two years ago and invested €113 (Dh500 then) in a property.
Fractional ownership is a method in which several unrelated parties can share in, and reduce the risk of, ownership of a high-value tangible asset, usually such as real estate, a jet or yacht.
When he started receiving rent income and noticed the property’s value was rising, Mr Prins increased the investment amount and spread it out over several units. He now has more than Dh100,000 ($27,229) invested across different properties and earns about 5 per cent to 6 per cent of the amount invested annually in rental yields. This is equal to about Dh500 in rental income per month that is transferred to his account.
The properties he has investments in are located in communities such as Jumeirah Village Circle, Mohammed bn Rashid City, Dubai Marina and Palm Jumeirah.
“I don’t have enough money to buy a property outright. With Dh100,000, I would not be able to buy a property without taking a bank loan,” says Mr Prins, who works with a start-up.
“I can now invest in multiple properties at the same time, and the company manages it, so I don’t have to make a decision. If I buy something myself, I might not know what to choose. The process has been transparent and hassle-free.”
Steps involved
Fractional ownership is emerging as an alternative entry point into Dubai’s real estate market, particularly for investors seeking access to premium properties without the burden of full capital exposure. It also enables diversification across locations or asset types, and in many cases, lowers the ongoing operational burden per investor.
Typically, this model is structured through a special purpose vehicle (SPV), where the SPV holds the legal title to the property and issues shares to investors proportionate to their contribution. While individual names do not appear on the title deed, the SPV structure typically provides a transparent and governed framework for shared ownership, offering clarity around rights, responsibilities and exit strategies.
Mr Prin said Stake offered to sell a few of his properties, but he declined because he believes values will rise more in Dubai, and he is a long-term investor. “I want my money to grow as much as possible,” he says. “You can sell your stake in a collective vote or during the exit window.”
However, he asks investors to be aware of exit fees, transaction charges such as the Dubai Land Department fee of 4 per cent and the property transfer fee, which are spread across all investors in the property.
Transaction costs are additional fees that are added to the purchase price of the property to complete the legal transfer of the asset from the seller to the buyer. These fees include the DLD transfer and registration fees, trustee fees, brokerage fees, property insurance, valuation fee and DIFC fees, according to the Stake website.
Rami Tabbara, co-founder of Stake, says fractional ownership makes buying property “more affordable” for people who do not have the amount for large downpayments or do not want to commit a lot of capital.
“It offers a much more transparent experience versus the open market and is digital, so you enable people to buy real estate on an app in under three minutes. It allows you to diversify and lower your risk,” he says.
“If you have $5,000 or $10,000, instead of placing all that capital into one property, you can put it across 20 properties.”
Rental yields
The minimum amount for investment in Stake currently is Dh500 and the rental income is paid monthly into the investor’s Stake wallet, which can be withdrawn to their bank account globally. The platform launched in 2021 and has more than a million users. Stake says it has transacted just under Dh1 billion across 400 apartments.
Stake’s portfolio today pays rental yields of about 5.7 per cent net annually, which is distributed every month, and offers capital appreciation of just over 5 per cent a year.
After a lock-in period of one year, the platform allows people to sell their stakes in two windows every six months. They can list their stakes on the secondary market to sell to other investors, according to Mr Tabbara.
“We’ve exited over 20 apartments when we received offers of higher prices. We send the vote to the investors on the app, and if the majority decide to sell, they can exit the property,” he says.
“Right now, we deal in ready apartments, villas and townhouses because there’s a limitation of up to $10 million per asset by the Dubai Financial Services Authority. We’re working with the DLD and the DIFC regulator to allow us to start selling off-plan. We hope the DLD’s tokenisation announcement will enable us to transact more asset classes outside residential and of higher value too.”
Stake charges a one-time acquisition fee of 1.5 per cent, a management fee of 0.5 per cent of the investment value taken from the rent annually, an exit fee of 2.5 per cent at the time of sale and a performance fee of 7 per cent on the appreciation profits, according to its website.
Riz Ahmed, chief executive of Dubai-based SmartCrowd, first interacted with the crowdfunding platform as a customer. He recalls that instead of putting $200,000 into one property, he spread it across 10 properties.
The company takes care of finding tenants, renewals, handling disputes, managing exits and documentation, while also offering investors the benefit of diversifying their assets, he says.
Democratising access
“The minimum you can invest from is Dh500. This is our way to democratise access to real estate. But we have people investing millions of dirhams and most of our investors are outside the UAE,” Mr Ahmed says.
The company has done 50 exits and funded more than 150 properties. It offers net returns of 17 per cent annually and the average hold period is three years. The platform charges a 1.5 per cent upfront free, 0.5 per cent a year management fee, and 2.5 per cent on exit, according to Mr Ahmed. It offers a “conservative” estimate of capital appreciation at 5 per cent to 6 per cent a year.
For every crowdfunding activity, SmartCrowd sets up an SPV that will own the property and investors own shares in it. This is done through the DFSA’s regulatory framework.
The platform opens a secondary window for two weeks every six months for users to sell their shares or buy someone else’s.
“Our plan for the future is to start offering off-plan properties. At the moment, we only do units on the secondary market,” the chief executive says.
Changing structures
But equity crowdfunding is expensive, says Scott Thiel, chief executive and co-founder of Tokinvest, a Dubai-based Vara-licensed marketplace for asset investing.
“You need to set up a DIFC crowdfunding structured vehicle for every single apartment. That is a fairly high cost, particularly when you’re talking about properties around the Dh1 million mark. It can cost a non-trivial amount of money to set up those companies, do share registrations and transfer shares,” he says.
“They are not liquid when it comes to selling the share since they are not publicly listed. Equity crowdfunding rules also restrict the amount that can be raised.”
Michael Kortbawi, partner at BSA Law, also highlights that the shared nature of the investment in fractional ownership means investors usually have limited control over decisions, especially when a management company or majority vote is involved.
“Selling a fractional share can also be challenging; liquidity is often lower than with traditional full ownership, and finding a buyer willing to purchase just a portion of a property may take time. Additionally, the resale value of a fractional share may not always match expectations, particularly if market conditions change or the structure lacks clear exit provisions,” Mr Kortbawi says.
“It’s also important to note that co-owners are bound by a right of first refusal, meaning they must first offer their share to existing investors before selling it to an external party. This pre-emptive right protects the current ownership structure but can delay exit plans.”
Due diligence remains key
Fractional ownership is still early in its adoption curve, but the concept is gaining traction, says Farooq Syed, chief executive of Springfield Property.
While a structured route, whether through an SPV or licensed fractional investment platform, offers transparency in ownership and enforceable agreements, there are complexities.
Liquidity remains limited, particularly where no secondary market exists for fractional shares. Investors may also have limited control over key decisions, depending on how the ownership is structured and managed. Transparency, especially around fees, timelines and exit options, can vary significantly between platforms, Mr Syed points out.
“Fractional ownership requires the same level of due diligence as any traditional real estate investment,” he says. “Key considerations, such as decision-making authority, distribution of returns, asset oversight and mechanisms for dispute resolution, should be explicitly defined and contractually secured prior to commitment.”
While informal arrangements, such as the pooling of funds among friends, may appear convenient, but they can quickly become complex when faced with differing expectations, personal circumstances or unforeseen market shifts, Mr Syed says.
Mr Kortbawi also stresses that engaging in fractional property investment through a formal company structure generally offers more legal protection and operational efficiency compared to informal arrangements.
Companies that offer fractional ownership services typically provide standardised contracts that clearly define each investor’s rights, responsibilities and exit options, which reduces the chance of future disputes, he explains.
On the other hand, informal arrangements can become legally complicated, Mr Kortbawi says. They may overlook important regulatory requirements set by the DLD or the Real Estate Regulatory Agency. Informal ownership without a proper SPV or co-ownership registration may even hinder the ability to enforce your ownership rights in court, he warns.
Impact of tokenisation initiative
Dubai’s recent tokenisation initiative will remove the need for SPV corporate structures to fractionally own real estate, according to Mr Thiel.
“The death of the SPV is going to be very significant, particularly for smaller investors and smaller properties, because the cost and inefficiency of having to set up those corporate structures are going to disappear,” he says.
“Another benefit is that the owner of these tokens will have their details recorded at the land registry. Also, tokenised assets can be used in collateral or alone. We’re very bullish on the future of tokenised assets being used to create instantaneous capital.”
The emirate offers one of the world’s most dynamic real estate markets for investors
Masih Imtiaz, CEO, Imtiaz Developments
This article is not merely a reflection on Dubai’s success; it’s a celebration of a city that has come a long way from its humble beginnings. Under the visionary leadership of His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, the Emirate has transformed from a quiet desert port into one of the world’s most dynamic and vibrant cities. Shaikh Mohammad’s foresight and relentless pursuit of excellence have shaped Dubai into a beacon of possibility — a place where boundaries are constantly redefined, and aspirations are welcomed with open arms.
Dubai stands today as a powerful example of what can be achieved when ambition is paired with an unwavering commitment to progress. It’s a city where extraordinary achievements are the norm, and dreams aren’t just possible — they’re expected. This is a place where opportunity flourishes, where families from all over the world find a sense of belonging, and where the quality of life is among the finest anywhere.
Dubai embodies a unique fusion of modernity and tradition, offering not only a home but a vision that continues to inspire global admiration and ambition.
For investors, Dubai offers one of the most dynamic and promising real estate markets in the world. Through the cycles of real estate growth and recalibration, Dubai consistently proves itself resilient, presenting opportunities that are simply unmatched. As the CEO of Imtiaz Developments, I have witnessed first-hand the extraordinary returns and potential this market holds. It’s a market defined not by quick gains but by a steady, reliable trajectory that benefits all who contribute to its growth.
While markets everywhere experience shifts, Dubai’s real estate story is one of sustained resilience and boundless potential.
Yet, Dubai’s accomplishments are not measured by buildings alone. Here, quality of life is a priority. From world-class education to pioneering healthcare systems, Dubai is a city where families can put down roots and build lasting futures. Safety and security are woven into the fabric of life here, creating a sanctuary for residents and an ideal place for raising families.
This is a city that offers peace of mind as much as it offers opportunity — a balance that is rare and invaluable.
Dubai’s fundamentals have matured over the years, proving its resilience against global economic shifts and conditions. The city’s strategic planning, diversified economy, and robust infrastructure have enabled it to weather challenges that have impacted markets worldwide. This stability and maturity are a strong reflection of Dubai’s commitment to sustainable growth and long-term vision, providing a foundation that continues to attract investors, businesses, and residents seeking stability, security, and opportunity.
History has taught us one enduring lesson: never bet against Dubai. Time and again, this city has defied the odds, rising stronger with every challenge it faces. From humble beginnings, Dubai has consistently shown that vision prevails, overcoming every hurdle with an unshakable resolve. It’s a city that doesn’t just dream but dares to achieve, standing as a powerful symbol of the strength of belief and resilience. Dubai’s journey is a reminder that when ambition is guided by vision, no challenge is insurmountable.
Dubai’s government has taken a proactive approach to continuously enhance infrastructure and lifestyle facilities, keeping pace with its ambitious growth. Strategic projects — such as the expansion of transportation networks, advanced healthcare facilities, and state-of-the-art recreational and cultural centers — are all part of a vision to ensure that Dubai remains one of the most liveable cities globally. These initiatives not only improve daily life for residents but also elevate Dubai’s appeal as a destination for businesses, investors, and families from across the globe.
I am genuinely excited to see what Dubai will look like in the next five years, as these transformative projects come to fruition and the city welcomes a growing population that will bring even more vibrancy and dynamism to this remarkable place.
At the heart of Dubai’s story is its leadership, whose vision has guided every step of this extraordinary transformation. Their approach is not simply to keep up with the future but to shape it, making Dubai a place that defies limitations and embraces challenges. They have ensured that Dubai’s growth benefits everyone, creating an ecosystem where innovation, stability, and inclusivity coexist. The courage and foresight of Dubai’s leaders have made sure the city not only beats every prediction but also sets new global benchmarks, emerging stronger from every challenge.
At Imtiaz, we are honoured to be part of this legacy. We believe deeply in Dubai’s fundamentals, and it’s this belief that drives us every day as we build not just spaces, but experiences that mirror Dubai’s spirit of resilience and ambition. Our projects are part of a larger vision, a commitment to creating a future that upholds Dubai’s values and inspires the world.
The story of Dubai is one of belief — a belief in the improbable, in the resilience of human ambition, and in the possibilities of tomorrow. It’s a miracle that proves itself, time and time again. We at Imtiaz are proud to contribute to this miracle, building the next chapter of Dubai’s journey, and with each project, bringing a piece of that vision to life.
Experts say Dubai’s current cycle is underpinned by strong fundamentals
The UAE’s real estate sector has continued its record-breaking trajectory this year, as the property boom shows no signs of slowing down. Dubai has been leading the charge as more people flock to the emirate to work and live. KT Luxe spoke to some of the country’s leading property experts to get their views on what is fuelling the boom, how long they think it will last, and the latest buyer trends.
Let’s start by looking at what is causing this boom. In basic economics, when demand outstrips supply then prices will rise. Dubai is an attractive place to live with its tax-free status, business-friendly policies, good quality of life and a wide range of visas for entrepreneurs and start-ups.
Last year we saw approximately 160,000 people move to Dubai and by the end of 2024 the population stood at 3.8 million. So demand is high.
Property developers have been playing catch-up, trying to match this demand by building homes for new residents. And we can’t forget property investors, particularly from the UK and India, who see Dubai as an attractive location for rental income and capital growth.
Once you add in low interest mortgages and flexible financing, it’s clear to see why we are in the midst of a property boom. More millionaires and high net worths are moving here, more branded residences are being built, and Dubai regularly ranks as a great place to live.
Property cycle
Property markets tend to move in cycles, and booms can’t last forever. So where are we in this current cycle? “We are definitely at the top, but what happens next will determine where we end up,” says Mario Volpi, head of brokerage at Novvi Properties.
“By this I mean, if we were to continue with the same population growth, we won’t see a stabilisation much before 2027 but if the numbers actually grow more, this bull run could go on for much longer.”
Richard Waind, CEO of Cencorp which owns Betterhomes, a full-service real estate brokerage, explains why a slowdown in prices might happen. “The inflow of people to Dubai will remain strong in the coming years, but increased supply may have an impact on prices in the short term, especially in the apartments sector. But villa and townhouses may remain undersupplied, given market demand.”
He points out that there are currently more than 1,700 projects under construction from over 200 developers.
Gabriel Tamman, a luxury property specialist with Tribeca Real Estate, is more bullish about the longevity of the property boom. “We are nowhere near the top. Unlike mature markets, Dubai is still in a high-growth phase. The UAE is a young country with the vision, resources, and policies to attract and retain talent and wealth,” he says.
Regardless of where you think we are in the cycle, Raji Kaippallil, founder of financewithRaji, makes a good point. “Those who view real estate as a long-term investment have little to worry about.”
History repeating?
When it comes to investing, a well-known disclaimer is that past performance is no guarantee of future performance. When it comes to property, can we learn from past booms and cycles?
“Each cycle is different but given what is mainly driving the demand at the moment, this gives this growth a more robust feel,” says Volpi.
Waind agrees that this current property cycle is very different from others. “Past markets in Dubai were far more speculative and unregulated. Today’s market is underpinned by strong economic fundamentals and population growth, and is well regulated and well capitalised.
“Ever increasing homeownership is creating a far more sustainable and ‘sticky’ market, a more mature market, which will protect buyers from any future market corrections”.
But while the outlook is healthy and optimistic, experts always have to be on their guard for a slowdown caused naturally or from unexpected events. “Dubai’s real estate market has experienced extreme growth over the past two years, raising concerns about potential overheating,” says Nataliya Khudykovska, a luxury real estate adviser.
But she then quickly lists all the factors that suggest that the market still has room for further expansion. These include strong demand from global investors, the growing number of wealthy residents (millionaires and High Net Worths), and stricter market regulations.
She pointed to current market dynamics to support her argument. “Project launches are proving very successful and many sell out on the day of launch itself, so far demand is keeping up with the supply.”
The mood is definitely upbeat, the fundamentals look good and no-one even mentioned the words ‘bubble’ or ‘bust’. To put current price levels in context, Waind explains that “Prices have increased roughly 20 per cent a year since 2020, but these prices have recovered from an extremely low level.”
“Today prices offer great value in comparison to other world markets, and according to the UBS Property Bubble index Dubai continues to offer ‘fair value’.
Khudykovska also highlights that prices haven’t yet reached historical peaks. “Despite their rapid growth, prices in some segments remain lower than during the 2014 boom.”
Buyer habits
So buyer demand is clearly strong, but what are they looking for in a property? Khudykovska observes that preferences in Dubai have shifted significantly over the past few years, reflecting changes in lifestyle, work habits and global investment trends.
“These include increased demand for larger spaces. Buyers are prioritising villas, townhouses, and spacious apartments over compact units. Communities like Dubai Hills Estate, District One, and Tilal Al Ghaf are seeing record demand for larger homes with private gardens and pools.”
Dubai has always had a reputation for luxury properties, and this is being cemented with the rise of high-end branded residences, exclusive penthouses and waterfront estates being built, to cater to the inflow of millionaires and HNWs.
“Dubai is becoming a top choice for wealth preservation,” says Khudykovska, founder of NKD real estate. “The luxury segment faces a significant lack of available properties, pushing prices even higher. While the situation in the mainstream housing market is slightly better, demand continues to rise.”
Flip and fix
One of the challenges with the property market has always been speculative buyers, who flip properties looking for a quick profit. We asked experts if this is still a trend among today’s buyers.
They told us that some investors continue to flip off-plan properties before handover, taking advantage of Dubai’s fast-rising prices and strong demand. High-end projects in Palm Jumeirah, Dubai Marina, and branded residences often sell out quickly, allowing early buyers to resell at a premium before completion.
But developers are increasingly introducing anti-flipping clauses, such as mandatory holding periods to prevent excessive speculation. Tamman adds that while off-plan flipping is still popular, fix-and-flip strategies are thriving.
Hot spots
And when it comes to new developments, there are plenty to choose from, catering to all types of buyers. Property experts listed a number of exciting projects in the pipeline, including Palm Jebel Ali, Downtown and Emaar Beachfront which all look highly promising.
Dubai is still developing its desert areas towards Dubai South (near Expo City and the new Al Maktoum International Airport), where new residential projects and business centres are emerging. While new island living, such as Dubai Islands (formerly Deira Islands), will feature new beaches, hotels, and luxury villas. Looking further ahead, The World Islands will be a collection of private islands for the ultra wealthy.
If you are searching for residential properties to buy either offplan or ready Properties in the UAE, we will give you options to suit your budget.
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Agua expected to push boundaries in Dubai’s luxury real estate
Citi Developers, a major player in boutique, high-end real estate, has launched AGUA, a new project at Dubai Islands. Designed as more than just a development, AGUA is a multi-sensory experience, where architecture, innovation, and nature seamlessly blend to create an unparalleled lifestyle.
Following the success of Allura, one of Dubai’s most exclusive developments, Citi Developers continues to push boundaries with AGUA, offering a new benchmark in sophisticated, intelligent living. Every detail of AGUA is meticulously designed to immerse residents in fluid luxury, from its sculptural architectural elements to its AI-powered smart living solutions.
At the heart of AGUA lies a philosophy of balance, innovation, and craftsmanship. The development integrates state-of-the-art materials, seamless smart automation, and bespoke interior artistry, ensuring that every home is an extension of the resident’s lifestyle and vision.
Key highlights of AGUA include:
A sanctuary in the sky, Cloud 9 features floating cabanas, an infinity beach pool, and a sunken pool bar, creating a seamless blend between the ocean and skyline.Designed to nurture the mind, body, and soul, The Base offers a Roman bath spa, outdoor yoga spaces, a private cinema, and world-class fitness facilities, making well-being an integral part of daily life. The Orobico marble reception desk and crystal chandeliers create a statement of elegance, welcoming residents into a world of timeless sophistication from the moment they arrive.
Every residence is equipped with Personal Assistant Robot AI-powered smart automation, allowing for seamless home management, concierge services, and personalized convenience, setting a new standard in next-generation living.
“I don’t just build homes; I craft experiences that shape the way people live. AGUA is our vision of what modern living should be—intelligent, seamless, and connected to nature in every way,” said the CEO of Citi Developers.
With a legacy of designing iconic, high-end developments like Allura, Citi Developers continues to push boundaries, ensuring that every project is a masterpiece of artistry and innovation.
If you are searching for residential properties to buy either offplan or ready Properties in the UAE, we will give you options to suit your budget.
Be sure to join our investor contact list to be notified about prelaunch and first launch deals to ensure you get first advantage buying.
Contact Us for more information , to book a unit or consultation session on WhatsApp +971 55 134 8912
Studio-2 Bedroom units sizes 484 sqft – 907 sqft starting at 1M AED
Apartments for sale in Mama Shelter Residences, Business Bay
About:
Mama Shelter is a renowned hospitality brand known for its trendy and vibrant hotels with a focus on design, entertainment, and socializing. Mama Shelter Residences in Business Bay is expected to offer a mix of hotel rooms and serviced apartments, providing guests and residents with a unique lifestyle experience.
Mama Shelter Residences goes beyond what is typically thought of as a home. It is a component of the international Mama brand, which debuted its stylish urban idea in Paris in 2008. Famous for its comfort and modern style, the brand was developed by former Club Med CEO Serge Trigano and renowned French designer Philippe Starck. This dynamic brand is a wonderful fit for Dubai’s quickly changing scene.
Franklin Azzi Architecture, located in Paris, created the architectural masterpiece known as the Mama Residences tower. The design puts a strong emphasis on elegance, lightness, and liveliness, giving the building a vibrant, young feel. The tower has a deep cultural touch because to the artwork that showcases the blending of local and world cultures.
Unit: Studio – 2 Bedroom Size: 458-907 sqft Price: 1.1 M – 3 M AED
Property details: (2 bedroom description)
2 Bedrooms Fully Furnished High Floor Built-in wardrobes Premium Location Post Handover Payment Plan (60% 3 year)
Amenities and Facilities:
•Stylish Restaurants •Bars •Lounges •Co-working spaces •Event venues •Entertainment areas
Completion date December 2024
If you are searching for residential properties to buy either offplan or ready Properties in the UAE, we will give you options to suit your budget.
Be sure to join our investor contact list to be notified about prelaunch and first launch deals to ensure you get first advantage buying.
Contact Us for more information , to book a unit or consultation session on WhatsApp +971 55 134 8912
Sensible pricing’ is starting to show up in key asset values – that’s good for investors
For some direction on where offplan property prices are headed, always maintain close watch on how land prices are shaping and reshaping.
In the US, Morgan Stanley released a report stating that ‘we now believe that price appreciation for the US housing market will be below 0%…’.
The word mincing notwithstanding, it is astonishing as to how quickly commentary changes to catch up to read the writing on the wall when sentiments start to change.
For years, the narrative was about the paucity of supply. Now, it’s about deficient demand.
Nowhere are valuations mentioned. It is a time-honored tradition that most analysts end up honoring – talking around the issue rather than address what is obvious.
In Dubai, even amongst the frenzy of transactions, as offplan prices fall (followed by a decline in land prices too), commentary remains bullish for the most part. Having a different opinion from the blundering herd, however, is not enough in light of data that has been clearly indicating excess supply for the better part of a year now.
Even as generous incentives to lure new buyers are not proving adequate to keep the price momentum going, developers are looking to private (and more expensive) credit to augment cash flows.
But the strain is starting to show as data points now adjust to recording transactions in the newer communities.
Real estate brokers have a vested interest in cheering the market on, but even in their commentary, there is no mention of valuations in community after community.
That of course works well in rising markets, but we know that as land prices fall, the ‘replacement value’ of the asset also starts to adjust. With rents already moving lower in certain communities, lower land prices will directly affect offplan prices, despite the increasing incentives on offer.
More drops ahead for land values?
The question then becomes how far can land prices fall in the next stage of the cycle? A historical analysis reveals that in the 2014-2020 cycle, land prices fell approximately 20%. In the bull market since then, they have risen five-fold, before a recent cooling off. (The narrative around this seems to be that its either seasonal, or its temporary).
But we know that for all the infrastructural and regulatory improvements, such a dramatic price rise has to be followed by some sort of gravitational mean eversion process. That affects the price that developers will offer their product at going forward.
Factor in a weakening dollar
Add to this the increasing possibility of a lower dollar, and some vague reference to ‘supply chain issues’ when the real issue is stagflation, there is no conclusion other than to suggest that prices have to adjust lower in most residential areas as supply comes on stream at an accelerated pace.
This is good for potential buyers, not so much for speculators and people who have already locked in.
Sensible pricing is coming across asset classes throughout the world, which it always does, and the sun has set on the period of excessive returns in the real estate sector. This is good news for affordability.
It is rarely obvious what is going on inside some boom – markets work in free verse and the smartest of people remain at risk of being sucked into the passions of the moment, as is the case with every boom-bust cycle.
But animalistic sentiment has the rhyming feature of turning coldblooded in an instant, and when it does, the adjustment process is never pretty.
Land prices, for all of its variances across the emirate will now – as they always have – dictate the replacement value hypothesis. It will be of no surprise that commentary around this issue will remain scarce, for the analyst community has never missed an opportunity to miss an opportunity.
If you are searching for residential properties to buy either offplan or ready Properties in the UAE, we will give you options to suit your budget.
Be sure to join our investor contact list to be notified about prelaunch and first launch deals to ensure you get first advantage buying.
Contact Us for more information , to book a unit or consultation session on WhatsApp +971 55 134 8912
They can capture great returns and depend on a reliable rule of law
For years, many foreign institutional investors dismissed UAE real estate as speculative and unsustainable, considering it merely a playground for luxury developments catering to the ultra-wealthy, rather than a serious asset class worthy of inclusion in their portfolios. That narrative is no longer true.
Today, the UAE has evolved into a fit-for-purpose, tech-forward powerhouse, and its real estate market is a relatively stable, income-generating opportunity. It is an investment prospect that institutional investors from Europe, the US and Asia – major pension funds and family businesses in particular – can no longer afford to ignore.
About 90 per cent of investors in our own luxury real estate funds, for example, are institutional (typically investing $10 million to $50 million each) and 80 per cent of the total are international. As for the remainder, about 10 per cent are high-net worth individuals (typically investing $1 million to $2 million) and 20 per cent are local family businesses.
It has been great to see interest levels on the rise from European and antipodean sovereign wealth funds, though they have yet to deploy capital. There is also evidence of private equity firms and other structured real estate funds following long-term capital allocation strategies.
Let’s look at the global context. Institutional investors looking for real estate opportunities seek a good risk-return profile. That means markets that are economically and politically stable with reliable governance and processes, and that show good growth prospects.
If you look at the risk-return matrix in the US as an example, it is reasonably easy to identify the risks and appreciate the solid financial structuring that comes around its offerings. To match that, you must be a seriously good asset manager in other parts of the world, where the financial set-up is not the same. For example, instead of a 20-year interest-only loan that prevails in America, we have floating interest rates on loans in the UAE, which makes a huge difference.
Of course, real estate investment opportunities for institutions are not without challenges. There are top-down macroeconomic risks in the form of an increasingly “fractured” global landscape, according to the World Economic Forum’s latest Global Risks report. These include rising geopolitical and economic tensions, climate change, societal polarisation and inequality, which can threaten stability and development.
Bottom-up risks are more complex. For example, it is more difficult to obtain building permissions in older markets, which can result in lengthy project timescales. On the other hand, scarcity of space in these markets can mean higher values because of higher demand. In emerging markets, meanwhile, true “luxury” developments with exceptional build quality are not as prevalent as might be expected.
Another question is that of volatility, which is generally higher in the Middle East and North Africa. Compared with Europe and North America, where much real estate development is replacement-driven, demand for real estate investment in the Gulf region can fluctuate according to economic and geopolitical factors in the rest of the region, Eastern Europe, the subcontinent and Asia-Pacific. Other challenges for investors in the UAE can include rising construction costs due to the shortage of skilled labour and materials like high-quality concrete and finishes, in addition to higher interest rates.
But institutional investors in the UAE real estate market can compensate for both this and financing differences by capturing greater returns on offer while being very disciplined as asset and fund managers. This helps them emulate or exceed the risk-return profile in other parts of the world. Some luxury real estate funds, for example, can realise a fivefold increase in value in the three years from final closing to distribution.
Most important to institutional investors, though, is having a reliable rule of law, as guaranteed by the Dubai International Financial Centre and the Abu Dhabi Global Market, both of which have good track records. Governance is something that comes up in every discussion we have with institutional investors, who react positively when they examine the Dubai Financial Services Authority’s operations and regulatory enforcement. Also, off-plan buyers have more safeguards than before, with a well-regulated land department and their investment capital going through an escrow account.
Another attraction for institutional investors is that there are more exit options available here than before. We are seeing demand for real estate portfolios from local bonds and property development firms, for example.
The shift in institutional investors’ attention to the UAE is supported by current demand. The UAE residential market was on course to reach an impressive value of $390 billion in 2024, with average prices expected to have risen by 19 per cent for apartments and 23 per cent for villas over the previous year. Secondary transaction volumes are up. Values are up. Off-plan sales are also up. Further development is expected in 2025, though the market may not grow quite so spectacularly as contractors work to satisfy last year’s demand.
I see a few underlying trends that sustain this expansion. Firstly, the country’s growing economic and political clout on the world stage. Recent membership of the Brics+ group, which represents about 45 per cent of the world’s population and 35 per cent of global gross domestic product, signals the Emirates’ rising influence in reshaping global economic alliances. This is a strategic hedge and a step towards greater trade, investment and collaboration across fast-growing, emerging markets. It complements the country’s emphasis on knowledge-based economic growth, along with diversifying away from oil and gas, and boosting its technology credentials with home-grown entities.
Secondly, the UAE real estate market has matured into a sophisticated, institutional-grade asset class, characterised by mixed-use developments and logistics hubs with ever-improving product quality. Institutional players looking beyond short-term gains are focusing on stable, sustainable high yield-generating assets. They are sustainable in two ways: environmental credentials appeal to investors who know it is good for re-sale value in the long term. And excellent design and build quality imply the asset will have a long life.
The third factor is that with economic stagnation and rising political risks in the rest of the world, the UAE provides a rare combination of stability and dynamism. In many western markets, inflation, low growth and monetary tightening have eroded returns, while the Emirates maintain a strong and stable economy with moderate taxes. It is an attractive place for wealthy individuals, entrepreneurs and aspiring professionals to live.
The UAE offers long-term value for institutional investors, which is largely unmatched elsewhere in the world today, and a template for more emerging markets to follow in due course.
Philly2dubairealtor 