Dubai’s property market is on track for another record year in 2024, fueled by rising demand, particularly in the luxury sector. The United Arab Emirates is expected to emerge as the world’s top wealth magnet for the third consecutive year. However, Hussain Sajwani, Chairman of Damac Properties, has raised concerns about the impact of these trends on Dubai’s affordability.
In a recent interview with CNBC, Sajwani highlighted the city’s escalating living costs. “Dubai is becoming an expensive city,” he said, pointing to the surge in demand driven by an influx of talented and middle-class residents. Sajwani warned that this growing demand is pushing prices higher across all sectors, resulting in increased inflation.
One of Sajwani’s key concerns is the strain on infrastructure, such as limited availability of school placements. He urged the government to address these challenges, although he acknowledged the complexity of managing costs in a rapidly expanding city.
Dubai’s property market remains robust, with July 2024 sales reaching AED 49.6 billion ($13.5 billion), a 31.63% rise from the same period in 2023. Elite Merit Real Estate reported that over 43,000 property transactions took place in the first half of 2024, totaling AED 122.9 billion—a 30% increase year-over-year. The firm noted that 80% of the new properties launched since 2022 have already been sold, reflecting strong demand.
Sajwani attributed Dubai’s ongoing success to its favorable policies during the Covid-19 pandemic, which attracted global talent and entrepreneurs. “Dubai today is a global city, attracting a lot of talent and businesses,” he noted.
Addressing concerns about a potential market crash, Sajwani expressed confidence in Dubai’s stability, citing regulatory reforms implemented after the 2008-2009 financial crisis. He emphasized that these regulations have created a more secure and efficient market, protecting both developers and consumers.
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