Dubai's real estate market will see a massive boost in property ownership and transparency in the wake of a new strategy launched by the government, said industry experts.
Under Real Estate Strategy 2033, Dubai aims to increase real estate transactions to Dh1 trillion by 2030 compared to Dh634 billion in 2023; boost the real estate sector's contribution to Dh73 billion; raise the homeownership rate to 33 per cent; implement programmes for affordable housing; and focus on transparency and global marketing, among other things.
Industry executives say that the emirate will continue with its investor—and resident-friendly approach and devise new initiatives and policies that will encourage people to buy more properties and turn to ownership, bring more transparency to the market, and enable developers to launch more affordable developments.
Dubai's property market has experienced a remarkable surge in prices and rents in the post-pandemic period, fuelled by both local and foreign demand. Prices have surpassed the previous peak of 2014 across various areas of the city. However, the introduction of more affordable units as part of the Real Estate Strategy 2033 will open up opportunities for more people to own properties and help tenants transition to ownership.
Ownership boost
Prathyusha Gurrapu, head of research and consultancy at Cushman & Wakefield Core, said increasing property ownership accessibility would benefit end-users and foster long-term investments, enhancing market stability and economic growth. “Initiatives such as favourable financing options, reduced registration fees, and tailored mortgage products could play a crucial role in this effort,” she said.
According to Ari Kesisoglu, president, Property Finder, Dubai real estate market has seen a remarkable surge in property ownership over the past two years.
“Dubai's Real Estate Strategy 2033 aligns perfectly with our long-held belief that strategic investments and cross-industry collaboration can enhance trust, technology, transparency, and talent in the real estate sector. As a leader in proptech, we're excited to support this ambitious vision through our innovative solutions,” he said
Kesisoglu added they have observed a significant uptick in buy-to-live transactions, as evidenced by the substantial increase in mortgage processing through their Mortgage Finder advisory service. “This trend towards owner-occupancy is a natural and more sustainable boost to homeownership, contributing positively to the overall health of the real estate industry.”
Rohit Bachani, co-founder of Merlin Real Estate, is confident about the growth of property ownership in the city as evidenced by significant increases in transactions.
“We have recently sold a Dh53 million penthouse and have noticed a growing emphasis on trust, with buyers increasingly interested to know about the backgrounds of developers. This trend benefits both established real estate firms and emerging developers, as Dubai consistently offers diverse options for residents, especially with new areas being developed. Additionally, financing and mortgage options have become more varied, making the luxury market even more attractive,” said Bachani.
More affordable housing
Kesisoglu said Dubai's vast land availability presents a unique opportunity - a 'blank canvas' for real estate development.
“The government has already demonstrated its exceptional capability in urban planning, and we believe these assets and learnings can be leveraged to make affordable housing a reality. Combined with reliable data, AI-powered services, and the collective efforts of industry partners, we're confident that Dubai can build a more resilient real estate ecosystem. This will facilitate informed decision-making, reduce uncertainty, and continue to drive property ownership demand, while also creating a wider range of options in both pricing and lifestyles in the future,” said the president of Property Finder.
Prathyusha Gurrapu said Dubai has the Real Estate Strategy 2033 places a strong emphasis on affordable housing, and more options for affordable housing will be needed as the city expands in order to support the wider economy.
“While Dubai properties are relatively affordable compared to other global markets, a large section of the market continues to rent. That said, due to the rising rents, we are seeing a growing demand from tenants looking towards homeownership over the last few quarters and foresee this trend to continue, further supported by lowering of interest rates,” she added.