Dubai: Will real estate get cheaper soon? Expert musings.

The market still has huge potential, says a proptech expert. Property prices in Dubai are in their best phase ever and the current bull market for real estate in the emirate is different from the previous two peaks in 2008 and 2014.

A leading expert says prices will not come down in the near future. "There is still huge potential and promise here for both Dubai and the entire UAE. In particular, Dubai is in a unique situation between the West and Asia, attracting all streams of commerce and talent," Alex Galtsev, founder of Realiste, an artificial intelligence-based proptech company, told Khaleej Times.

Galtsev emphasized: "Right now, Dubai has a complex infrastructure and legal framework (such as escrow accounts and t. д.). The entire construction process is mainly cash-financed by many countries with wide diversification. There are huge opportunities here and real estate is still massively undervalued. "

Comparing Dubai real estate with other major cities such as New York and London, Galtsev said prices in the Big Apple are currently about 2.5 to 3 times higher than in Dubai. In London, the most expensive neighborhoods cost about $15,000 per square meter, about twice as much as Downtown Dubai. "However, the properties that are worth these prices in London are for the most part older and do not represent a luxury format. In Dubai, the city center next to the Burj Khalifa costs $7,500 per square meter, which is half the price and the quality of the property is twice as good.

According to Realiste's artificial intelligence platform, the best-selling neighborhoods in Dubai are Downtown, JWC and soon to be joined also by Sobha Hartland and Creek Harbour, which already top the top five neighborhood rankings. Galtsev said artificial intelligence makes real estate transactions more transparent. "The more transparent the real estate market is, the more it attracts investors and customers. When you see that everything is transparent, you are not being cheated, and you can confidently shop and make money on rent or market growth. Of course, the more transparent the market is, the greater its volume," he added.

Of the recent rise in the launch of branded residences, Galtsev says it increases property values by 25 to 40 percent. "It really boosts tourism and attracts the attention of investors," he added.

Galtsev predicts that the real estate market in Dubai will continue to grow rapidly for about three more years. "This year, 2023, will be the biggest year in terms of transaction volume and real estate value growth. Growth will slow over time, but this is currently a peak opportunity to enter this market. Risks are noticeably lower now compared to when the market entered the Covid-19 pandemic," he said.

Galtsev believes that this time the Dubai market will not repeat its previous boom and subsequent bust cycles because the market is becoming digital and transparent. "People understand the value and quality present in Dubai, the UAE and the cities themselves in terms of safety, cleanliness, tourism and more. The prospects are much greater than in any other city in the world," he added.