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Writer's pictureNarcis Marian

What makes Dubai property sector competitive in the global Real Estate market?


property sector in dubai

Dubai, a city where architectural marvels meet cosmopolitan lifestyle, has emerged as one of the most sought-after property investment destinations. Let's look at the key attributes that make Dubai's property sector, so attractive in international scene.


634 billion AED (or 173 billion USD) of transactions value in Dubai Real estate market in 2023, which is the highest value ever in Dubai's history. That represent 20 % growth compared to previous year in 2022.


In the latest insights report from UBS Wealth Management titled "Luxury Property Focus 2024", is noted that: Despite very high price increases and strong demand, prices per square meter in Miami and Dubai remain significantly lower than their peers."


In the Global Real Estate Transparency Index 2024, from JLL consultancy firm, for UAE, Dubai ranked no 28 globally with an overall score of 2.38 based on six sub-indices. Score 1.00, being the highest possible score. Abu Dhabi rank was no 41 with a score of 2.87.


Visionary Urban Planning


At the heart of Dubai's real estate success lies its visionary approach to urban planning. The emirate strategic plans started with the launch of the Dubai Strategic Plan 2015 in 2007 and was followed by Dubai Plan 2021 which was launched back in 2014.


Sustainable Urban Development with Dubai 2040 Urban Master Plan


As Dubai's population is projected to reach 5.8 million by the end of this decade, the city has unveiled the Dubai 2040 Urban Master Plan which is the seventh development plan for the emirate since 1960.

This ambitious initiative focuses on sustainable urban development, aiming to enhance the quality of life for residents while elevating Dubai's status as a premier leisure and business hub. By embracing green spaces, efficient transportation systems, and smart city technologies, Dubai is poised for sustainable growth in the coming years.


The key set objectives are to:

  • upgrade urban areas

  • improve the efficiency of resource utilization

  • develop vibrant, healthy and inclusive communities and double green and leisure areas

  • provide a healthy environment to residents and visitors

  • provide sustainable and flexible means of mobility


Dubai has built a lively environment that smoothly integrates residential, business, and leisure spaces thanks to meticulous planning and strategic initiatives.


The Role of the Dubai Land Department (DLD) and its Strategic Plan 2026


A major pillar of Dubai's real estate success is its strong regulatory system, led by DLD.


The department's "Strategic Plan 2026" acts as a road map for positioning Dubai as a global leader in real estate. The DLD is dedicated to developing a skilled workforce that will drive the sector ahead, with a focus on professional development and knowledge sharing.


The institution plays an important role in the smooth functioning of the property industry by providing Government services such as:

  • Documentation of property transactions

  • Issuance of real estate ownership documents

  • Facilitation of investments

  • Dissemination of knowledge to foster local talent within the sector


DLD has launched in May this year, the Real Estate Evolution Space Initiative - REES. This program aims to achieve several goals:

  • to develop the innovation environment in the real estate sector

  • to enhance collaboration between the private and government sectors

  • to enhance the department's capacity to acquire the best technologies across subsets

  • launching the real estate accelerator project by providing funding from DFDF


Embracing Digital Transformation in Real Estate


Dubai's real estate sector has embraced digital transformation, paving the way for a more transparent and efficient market. With a digital-first approach, property transactions are made public, streamlined, and data collection is enhanced, providing investors with valuable insights to make informed decisions. This digitization of processes not only improves operational efficiency but also boosts confidence in the market.


Attracting Global Real Estate Investments


Through a combination of supportive regulations, data-driven insights, and a skilled workforce, Dubai has positioned itself as a magnet for global real estate investments.


The city's strategic location, world-class infrastructure, and business-friendly environment make it an attractive destination for international investors seeking lucrative opportunities in a dynamic market. Furthermore, Dubai’s property market offers tax-free advantages, which is a compelling draw for global investors seeking profitable returns.


A Growing Diverse Population


As Dubai's population continues to grow, so does the demand for diverse real estate options. The city attracts foreign nationals from over 200 countries, contributing to a multicultural environment that drives demand for everything from luxury apartments to affordable housing.

The expected property supply this year is 24,000 units to come into the market, while currently have been completed 17,877 units in the city.


With its expanding population, the real estate sector is set to see sustained growth in the coming years, catering to both local and international residents.


Conclusion


Dubai's property sector stands out in the global real estate market due to its visionary urban planning, strategic initiatives by the Dubai Land Department, commitment to sustainable development, embrace of digital transformation, and ability to attract global investments.

As Dubai continues to evolve and innovate, its real estate sector is poised for even greater heights, solidifying its position as a frontrunner in the competitive world major cities such as London, Miami, New York, Shanghai or Hong Kong.


Stay tuned as Dubai's skyline reaches new heights, symbolizing the city's unwavering commitment to excellence.

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