Dubai Property Market Forecast 2024
Leading reports and analysts have predicted positive growth and outlook for the Dubai property market in 2024.
In lieu of attracting more demands from foreigners, the UAE government has allowed relaxations in the investment policies. The major policies include a simple registration process, less taxation, freehold ownership rights, and a dedicated real estate regulatory authority to protect investors' rights.
One of the significant advantages of investing in Dubai's real estate market is the absence of property and income taxes. Unlike other countries, UAE does not have a very elaborate tax policy for the real estate market. In the absence of investors who have been banking on the tax-free environment and enjoying a high return on investment.
One of the major factors that has made Dubai the leading investment hub is its high ROI. Citing the high-end amenities, fully developed properties, and infrastructural developments are the major factors behind this. All of these factors have led to a constant uptick in Dubai’s real estate market. This is going to be a key driving factor for 2024 as well. Early forecasts suggest a high ROI between 6.9 to 7% from the property available in Dubai.
Out of all, Dubai Marina, Jumeirah Village Circle, and DAMAC Hills are going to witness a surge in the ROI. Dubai Marina will witness an ROI equal to 7.2% whereas Jumeirah Village Circle is going to offer an ROI equal to 6.8% in the coming days. Highly Developed Infrastructure
Dubai is mainly famous for its highly developed infrastructure like transportation, developed properties in posh localities etc. Some of the major architectural masterpieces that one can find here are Burj Khalifa, Al Bahar etc. In the same way, the properties and communities in Dubai are equipped with all the modern amenities thus promising a comfortable stay for the residents.
The UAE government has announced the Golden Visa program for ex-pats willing to invest in the country. This policy has benefited the country by attracting foreign investment. Due to this policy, now NRIs are able to invest in properties without any fear of ownership rights. The golden visa usually grants long-term residence permits to eligible investors, property owners, entrepreneurs, and highly skilled professionals. This program provides an added incentive for investors and offers long-term stability as well.
Dubai’s real estate market has always shown an uptick in higher interest rates as compared to other global markets. These high-interest rates are good for investors who are seeking income via rental yields. Talking the same, the home loan interest in Dubai usually ranges between 3% to 5%. However, it is expected that the rates will be lowered in the coming days. This reduction in the interest rate is going to benefit the expats and residents of Dubai.
Dubai has seen a significant rise in the demand for high-end villas and posh apartments over the years. The same surge in demand will be available for the year 2024 as well. It is anticipated that there will be a surge of 2% in the number of people living in Dubai. Now, both citizens and ex-pats demand spacious and luxurious housing in upscale neighborhoods. To cater to the demands of housing, the developers have decided to plan around 10,000 new inventories for the coming year. This increased inventory will not only fulfill the rising demand but also act as a cap on the rising prices. It is estimated that the average price of the villa will be capped at $1.4 million.
The UAE has been experiencing a decline in the overall inflation rate. This decline has a positive impact on the investment made in the real estate sector. This low inflation rate accounts for a stable price and lower cost of living. In turn, it has also managed to attract investors and stability along with long-term growth. The forecast suggests that the inflation rate in the property price will be only 4.5% for 2024 and 3% for the year 2025.