Why investing in Dubai's real estate market makes sense

Dubai continues to change and each new iconic project adds to the appeal for investors. Dubai real estate is evolving and different from established global markets. It offers unprecedented opportunities, not because it is superior to other markets, but because Dubai sets its own basic dynamics and rules. And it has already demonstrated the capacity for ambitious realization. Here are the key trends shaping Dubai real estate:

Revolving planned developments:

In contrast to established investment markets, Dubai continues to launch mega projects in desirable locations, be it Creek Harbour, Port De La Mer, Citywalk and the much-awaited Palm Jebel Ali.

A flurry of luxury living spaces:

There were a limited number of luxury residential projects in Dubai before the Covid era. In just three years, their numbers have grown more than tenfold. While most developers used to focus primarily on basic needs, they are now paying notable attention to living spaces, architectural aesthetics and the unprecedented flourishing of branded living spaces.

Infrastructure and attractions:

The hallmark of an outstanding real estate market is always its robust infrastructure. Dubai's global importance is emphasized by its infrastructure. The progress of the city affects not only the demand for real estate, but also its intrinsic value. The key takeaway is that because Dubai's infrastructure is still evolving, with new mega attractions and plans, this promises unique opportunities not available in adult markets that are largely fully developed.

Revolution in the home vacation industry:

The introduction of fully government-regulated home vacations has not only diversified the rental market, but has also provided owners with the opportunity to attract a wider audience of renters, including permanent residents of Dubai.

The absence of decades of continuing market trends requires a sharper focus and thoughtful strategy to successfully navigate this unique market. Investors who decide to invest in Dubai real estate are advised to work with experienced experts. The following results were achieved in July:

• Real estate sales totaled AED37.7 billion, up 80% from a year earlier, according to DXBInteract.com.
• The total number of transactions amounted to 11,130, up 56% from July 2022.
• 5-room apartment in Marsa Al Arab was sold for AED 420 million.
• 6 villas on Lanai Island in Tilal Al Ghaf were sold for almost AED 600 million.

The Dubai real estate market, always evolving and expanding, attracts sophisticated investors who are willing to think outside the box. However, it takes more than intuition to capitalize on the opportunities of such a dynamic market. Success awaits those who make decisions based on the following strategic principles:

Data-driven expertise

Base decisions on reliable data to ensure they are timely and effective. In a rapidly changing marketplace, informed leadership is indispensable.

Strategic entry and exit

Developing a strategic roadmap that identifies the most appropriate times to enter and exit the market can significantly increase the return on investment.

Synchronization with market cycles

Being in tune with the rhythm of the market is important. Whether it's a bull market or a downturn, synchronization with market cycles can determine the profitability of an investment.

Deciphering local dynamics

Dubai real estate trends depend on a unique combination of cultural, economic and infrastructural factors. A deep understanding of these localized dynamics allows investors to forecast trends and leverage them effectively.

In essence, the evolving picture of Dubai real estate offers a plethora of opportunities. But the real rewards await those who approach it with strategy and a deep understanding of the market.

DFiras Al Msaddi CEO of fam Properties.