Dubai: Are real estate prices about to come down? Here's what the expert says - News | Khaleej Times

The market still has huge potential, says a pro-tech expert.

Published:

Wed July 5, 2023, 6:00 a.m.

Updated:

Wed July 5, 2023, 7:12 am.

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. According to a leading expert, prices will not come down in the near future. "There is still huge potential and promise here for both Dubai and the UAE as a whole. 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 firm, told Khaleej Times. Galtsev emphasized: "Right now, Dubai has a sophisticated infrastructure and legal framework (e.g. escrow accounts and so on). The whole construction process is now financed mainly with cash from many countries, diversifying extensively. There are great opportunities and real estate is still very undervalued," he added.

Alex Galtsev, founder of Realiste. - Photo provided by

According to Realiste's artificial intelligence platform, the best-selling neighborhoods in Dubai are Downtown, JVC and will soon be joined by Sobha Hartland and Creek Harbour, already ranked in the top 5 areas. Artificial intelligence is making real estate transactions more transparent, says Galtsev.

"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 buy with confidence and make money on rent or market growth. Of course, the more transparent the market, the bigger the volume," he added. Regarding the recent surge in the launch of branded residences, Galtsev says it increases property values by 25 to 40 percent. "It really increases tourism and attracts the attention of investors," he added. Galtsev predicts that the real estate market in Dubai will continue to grow rapidly for another three years. "This year, 2023, will be the biggest year in terms of transaction volume and real estate value growth. The growth rate will slow down over time, but this is currently the peak opportunity to enter this market. Risks are noticeably lower now compared to when the market hit 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 are realizing the value and quality present in Dubai, the UAE and the cities themselves in terms of safety, cleanliness