Bassel Alhamra on the Changing Face of Dubai Property Market
Dubai has long been seen as an attractive tourist destination. Its towering skyscrapers, exceptional cuisine, stark natural beauty, and abundance of entertainment options attract crowds of tourists each year. It continues to earn tourism awards like the Tripadvisor Travelers’ Choice Awards 2024 (for the third consecutive year) and retains the title of the world’s No.1 city destination in the Top 100 City Destinations Index 2023 by Euromonitor International.
Dubai also exerts a siren call to those who wish to invest in property. Dubai’s ongoing development of luxury residential property provides exceptional value, and the attractions for buyers also include high rental yields, easy real estate financing, and accessible residency visas.
However, it is an investment sector that is evolving at a pace that mirrors the speed at which new developments are reaching the market. The caveat emptor policy (beware the buyer) should be very much in the minds of those who are in search of property in the most populous city in the United Arab Emirates.
For those in search of exceptional return on investment and a hassle-free property investment, the advice of a Dubai real estate professional is essential. Although the investment process is touted as straightforward, regulation is a work in progress and dealing with red tape can be frustrating (and potentially costly).
One man who has built a loyal following of high-net-worth buyers is Dubai-based senior property consultant, Bassel Alhamra. His approach to finding buyers investments that provide not only exceptional ROI but also an aspirational lifestyle is based on two foundations; understanding an evolving market and transparency. For those with an eye on an exceptional property investment, his insight is invaluable.
An Evolving Investment Market
According to Bassel Alhamra, investors in Dubai’s flourishing real estate market are attracted by Dubai’s track record of providing exceptional medium and long-term returns and the lifestyle choices that Dubai offers. However, he cautions against speculative investment.
During the COVID-19 pandemic, many markets experienced downturns, but Dubai emerged as a resilient destination. People were drawn to the city because it managed to navigate the challenges of COVID-19 without shutting down businesses or facing the same level of disruption as other countries. This resilience has created significant growth potential in various sectors of the market. However, the environment has changed dramatically.
However, Alhamra notes that many investors mistakenly believed this rapid growth would continue indefinitely. The market has since changed, with an influx of new developments leading to a more normalized environment. The past two years have seen an increase in available stock, which has contributed to this shift.
The property market in Dubai provides exceptional opportunities for those with a medium to long-term investment mindset, a fact that has not escaped the attention of savvy investors, as evidenced by market activity.
Dubai's property market experienced a remarkable surge in July 2024, with sales reaching AED 49.6 billion (approximately $13.5 billion USD), a 31.63% increase from July 2023. This growth is largely driven by the demand for luxury properties in prestigious areas .
The first half of 2024 saw over 43,000 property transactions completed, valued at AED 122.9 billion, up 30% from the previous year. Notably, around 80% of the units launched since 2022 have already been sold, indicating a strong appetite for new inventory.
The Value of Transparency
Dubai is progressing with its 2040 Urban Master Plan, striving to become the 'best city in the world' over the next two decades. This plan emphasizes sustainability, boosting investment, and allocating 60% of the area as natural reserves, which will stimulate growth in the real estate market.
Dubai's property market offers strong opportunities for international investors. With its strategic location and growth potential, it's worth considering. For newcomers to the international real estate scene, partnering with a local property management expert can be beneficial, as they provide support in areas like advice, execution, monitoring, and future resale.
However, investing in Dubai's property market carries risks (in common with other international property markets), including market volatility, hidden costs beyond the purchase price, tax implications and residency requirements. Conducting thorough research and seeking guidance from experienced real estate advisors is essential to mitigate challenges in the Dubai real estate market.
Alhamra believes strongly that the real estate advisors in Dubai and international agencies have historically been less than forthcoming about the complexities of the Dubai real estate market.
“Investors often underestimate the complexities of the Dubai real estate market, believing that rapid price increases will last indefinitely. Many enter transactions with limited knowledge, which can lead to penalties and potential losses. It’s essential for investors to do their initial due diligence and work with credible advisors who prioritize honesty and education, as understanding the market is crucial for making informed decisions,” says Alhamra.
“Unfortunately, many short-term Dubai property advisors focus solely on commissions rather than fostering long-term relationships. This approach fails to recognize that many buyers are looking to expand their portfolios beyond a single property. To build trust and ensure successful investments, it’s vital for advisors to engage genuinely with their clients.”
Dubai's real estate sector continues to attract both local and international investors, supported by ongoing developments and a diverse range of properties. This robust activity highlights Dubai's appeal as an attractive destination for lucrative real estate opportunities. For the focused property investor, it’s a market filled with the promise of exceptional ROI, but it’s also a market that will reward partnerships with professional advisors.
For unique insights into Dubai’s rapidly evolving property market and winning investment strategies visit Bassel Alhamra’s LinkedIn page.
