Finance World Magazine| Edition: October 2024

Dubai is a fast-growing business
hub in the Emirates and is drawing
significant interest from
businesses worldwide. In recent years, it
has experienced unprecedented growth.
Official figures indicate that from April
to June 2024, there were 43,522 property
transactions, the highest ever recorded in
the market’s history, and a 45% increase
compared to the same period in 2023.
Furthermore, the total transaction value
in the second quarter of 2024 reached
$33.9B, a 37% increase from the second
quarter of 2023.
Dubai continues to solidify its position
as a premier destination for real estate
investment, with market indicators
pointing to sustained growth and stability.
According to a comprehensive analysis
from UBS, a leading Swiss financial
institution, Dubai ranks among the top
three global cities for sustainable price
appreciation. This stability is further
evidenced by the remarkable growth
trajectory in the local property sector,
where annual appreciation rates have
consistently reached 15-20% in recent
years. The current market offers diverse
investment opportunities, with property
prices ranging from $2,500 to $15,000 per
square meter, catering to various investor
profiles and objectives.
The real estate market demonstrates
robust demand across both residential
and commercial segments, underpinned
by strong economic fundamentals and
strategic government initiatives. Looking
ahead to 2024, market projections provide
an optimistic picture, with total real
estate investment volume anticipated to
surpass $100 billion.
There is also significant growth in the
luxury property sector. Between 2022
and 2024, Dubai emerged as a prime
destination for affluent expatriates, with
the influx of wealthy individuals driving
the demand for high-end real estate. Last
year, Dubai secured a top position in the
global branded housing market, leading
experts to predict that luxury property
investment in Dubai will continue to rise
in popularity in 2025 with the number of
available properties rapidly increasing.
Dubai Real Estate Investment
Opportunities
Investing in residential properties presents
an excellent opportunity for high
returns and a quick payback period. With
property values consistently appreciating
and a growing demand for rental housing
driven by the steady influx of expatriates,
Dubai’s residential real estate market
stands out as a lucrative investment.
The primary factor influencing the
viability of property investment in Dubai
is profitability, which is measured by
return on investment (ROI). Official
statistics show that the average ROI for
Dubai properties is approximately 7.5%,
varying by property type and location.
Dubai Property Investment Tips
1. Market Assessment: Evaluate market
conditions and select the right type of
real estate. Understand the property’s
location, size, price, finish, and amenities
to ensure its potential to generate income.
2. Developer Reputation: Research
the developer’s reputation, especially
for off-plan purchases, as construction
quality and the company’s credentials are
crucial for investment success.
Satish Sanpal
Chairman,
ANAX Holdings
3. Freehold Areas: Invest in freehold
areas to ensure full ownership rights,
allowing rental and resale opportunities.
4. Investment Strategy: Choose a
strategy that suits your goals. Options
include buying ready-to-rent properties
(5-8% long-term returns, 10-11% shortterm)
or investing in off-plan properties
for lower initial costs and potential price
appreciation.
The Best Areas to Invest in Dubai
Property
Intelligent property investment in Dubai
necessitates careful consideration of
locations. Among the areas with high
returns on investment (ROI) are Dubai
Downtown, Arjan, Dubai South, Damac
Hills, Dubai Marina, and Dubai Hills Estate.
Dubai Downtown
Dubai Downtown is a lively area with
iconic landmarks like the Burj Khalifa
and Dubai Mall. It features luxury hotels,
diverse dining, and vibrant nightlife, along
with an array of stunning residences. The
Dubai Mall and cultural venues enhance
its appeal, making it a dynamic destination
that combines modernity, culture,
and luxury.
Arjan
Arjan is characterised by the beautiful
Dubai Miracle Garden, impressive high-rise
buildings, and strong potential. Located in
the heart of Dubailand, this area provides
a stable income for property investors.
Dubai South
An emerging and highly sought-after
neighbourhood, is quickly becoming
a prime destination for real estate
investment. Strategically located near
key infrastructure such as Al Maktoum
International Airport and the Expo 2020
site, Dubai South is designed to be a hub
for commerce, logistics, and aviation.
Damac Hills
Damac Hills is an eco-friendly community
with modern amenities and green spaces,
perfect for escaping urban noise. While
prestigious, property prices are still
affordable, offering a 6% ROI, making
it a solid investment option. Highlights
include the Trump International Golf
Club and the Malibu Bay resort.
Dubai Marina
Dubai Marina, one of the trendiest districts
in Dubai, features towering skyscrapers
and an impressive man-made bay.
Renowned for its luxurious waterfront,
easy access to Jumeirah beach with a
plethora of beach, and yacht clubs, the
area boasts premium housing making it
highly covetable for young professionals
and holiday homes.
Dubai Hills Estate
Dubai Hills Estate is an upscale residential
and commercial area that offers serene
living conditions, featuring high-quality
properties, various recreational spaces,
playgrounds, pet-friendly walking paths,
and expansive lawns. With a 5% ROI,
Dubai Hills presents an attractive option
for foreign investors looking to purchase
property and achieve a significant return.
Oct 2024 www.thefinanceworld.com 39