Insights from Dubai’s Real Estate Roundtable: A Path Forward
As Dubai’s property market continues to soar to new heights, an exclusive roundtable organized by Property Finder brought together leading figures from the emirate’s real estate sector to discuss future prospects. The backdrop of an extraordinary market performance has stakeholders cautiously optimistic, expecting increased transaction activities to persist into 2025.
Positive Outlook Amid Challenges
Despite facing global economic challenges—including rising inflation and geopolitical instability—Dubai’s real estate leaders remain optimistic. The unwavering interest from investors, especially international buyers, fuels this confidence. Notably, data from Property Finder reveals that the United States is currently the leading source of search traffic for Dubai properties, followed closely by the UK and India. This surge from the US signifies a noteworthy shift in market interest.
For long-term renters, there’s a silver lining as experts predict price declines in premium areas like Dubai Marina and Jumeirah. While this adjustment may slightly impact rental yields for landlords, it hints at a necessary rebalancing within the market.
Daniel Hadi, CEO of Engel & Völkers, pointed out, “The market has been extraordinary. We have delivered the best quarter in our history, and I believe we are on the cusp of two more years of remarkable growth.”
Similarly, Sam McCone, Managing Director of McCone Properties, expressed profound optimism about Dubai’s hidden potential. “The true narrative of exceptional opportunity remains somewhat of a secret that the world has yet to fully appreciate,” he noted.
Lucrative Opportunities in Off-Plan Sales
Off-plan properties are playing a pivotal role in driving revenue within Dubai’s real estate market. The attractive commission structures, typically ranging between 8% and 10%, create a win-win scenario for both developers and agents. Experts forecast that the market will naturally evolve as these high-yield opportunities mature into a more balanced demand and supply landscape, paving the way for diversification.
John Lyons, Managing Director of Espace Real Estate, highlighted the strong start to the year, with a reported 29.1% increase in Q1 revenues. This growth stems not only from a robust market climate but also from the expanding business footprint of companies in the sector.
Lyons cautioned, however, that while current conditions are positive, rental yields may face pressure in the medium term as new properties become available and rental growth begins to stabilize.
Resale Market Momentum in Luxury Segments
The handover of off-plan properties is boosting resale activities, particularly in the luxury market of Abu Dhabi, where transactions for villas priced at AED 8 million ($2.2 million) and above are surging. Buyers from Dubai dominate these transactions as demand for high-end properties remains robust.
According to Property Finder, there’s a noticeable shift towards larger living spaces, with 64% of villa and townhouse searches focusing on properties with four or more bedrooms. Kika Pavese, Managing Director of MD Real Estate, reported a significant increase in demand, especially in the AED 8-20 million ($2.2-5.45 million) price range, predominantly driven by local buyers.
Simon Baker, Managing Director of Haus & Haus, noted that international buyers are also keenly interested in villas, designating this segment as one of the most stable areas of investment. Abdullah Alajaji, Founder and Managing Director of Driven Properties, emphasized the enduring value of premium investments, stating that luxury properties in areas like Jumeirah are becoming more accessible as prices adjust.
Engaging Real Estate Leaders in the Marketplace
The roundtable discussion, chaired by Michael Lahyani, CEO and Founder of Property Finder, served as an important platform for dialogue among the leading figures of the real estate industry. Among the attendees were notable executives from various firms, including:
- Richard Waind, CEO of BetterHomes
- John Lyons, Managing Director of Espace Real Estate
- Firas Al Msaddi, Founder and Owner of fäm Properties
- Simon Baker, Managing Director of Haus & Haus
This gathering of influential leaders not only reflects the shared commitment to navigating the current market landscape but also showcases a collective optimism for crafting a sustainable future in Dubai’s ever-evolving real estate scene. With ongoing dialogues and strategic collaborations, stakeholders are well-positioned to leverage the opportunities presented by this dynamic market.
