Dubai's Property Market Soars: Real Estate and Construction Investments to Grow in 2024

Investment in Dubai’s property market reached $ 100 billion in 2023, with this figure expected to grow by 5% in 2024. Dubai's economy is moving away from its dependence on oil, focusing on sectors like tourism and innovation. This diversification is expected to drive a 15% growth in the residential market by 2024. The population is expected to increase from 3.5 million in 2023 to 5.5 million by 2030, providing demand for properties. Dubai's businesses, particularly in construction, retail, and tourism, are on a hiring spree. This economic growth fuels the demand for real estate and housing and strengthens the overall market.

The launch of qualitative infrastructure projects and investments by the government and the private sector are expected to steadily continue the momentum of growth in the real estate market in 2024. Programs like Golden Visa for property buyers and focus on the middle class are expected to further attract investors.

Residential construction captured the highest share of the UAE’s construction market last year. The residential market has continued to rise. In 2021, Dubai saw the highest number of residential sales since 2009. In 2023, the real estate market saw unprecedented levels of transactions, with sales and rental prices going up 18% and 26% respectively. This trend is expected to continue for Dubai in 2024. Property prices continue to use, but more moderately by 3-5% according to CBRE reports.

With the upcoming population growth and demand for property investments, mid-range properties are growing in popularity for their stable and affordable options on the market. Developers have taken note of this and are offering attractive options in this market segment with appealing payment plans. Short term rentals, of up to 6 months, are also growing in popularity. As Dubai’s tourism sector grows and flourishes, more tourists are looking at short term, flexible accommodations for their extended stay. For people who don’t want to buy an entire property, fractal ownership options allow investment into portions of properties rather than an entire unit. This is allowing for a larger market of individuals to invest in the real estate market. As more people look to these properties for investment purposes, there has been a growing demand for companies specializing in property management services for non-resident owners.

The integration of technology is powering virtual tours, AI-powered market analysis, and user-friendly search platforms, transforming the way people experience and explore properties. Investors do not have to be physically present in Dubai to buy property and these tools will set a new standard for how property is bought and sold with greater transparency.

There also a growing movement towards sustainability. Eco-conscious developments with energy-efficient features and green spaces are attracting significant interest from environmentally responsible buyers. Investors are increasingly favoring properties in cities that prioritize sustainability initiatives like energy efficiency and eco-friendly materials. Government schemes to invest in clean and renewable energy projects until 2050 will drive the sector growth in the coming years.

With the growth in real estate, construction and tourism, Dubai businesses hiring staff in big number to meet the consumer demands of the markets. According to data from S&P Global, February 2024 had the fastest hiring rate in 8 years. Construction and project management continue to add jobs, as does real estate, where growth and new launches continue to drive activity in the market.

Dubai's property market presents a promising outlook. While property prices are inching upwards, the growth is expected to be more stable compared to 2023. The market is being shaped by a diversified economy, a growing population, and strategic government initiatives.