Dubai’s property market continues to present attractive investment opportunities, with average prices per square foot being significantly lower—around one-third of those in London and half of those in Los Angeles.
Leading developer Binghatti Properties is set to nearly double its portfolio over the next 18 months, expanding from AED40 billion to AED100 billion.
This expansion follows a strong performance by Binghatti during the first half of the year. Muhammad Binghatti, the Chairman of Binghatti Properties, recently shared that the company, which has partnered with global brands like Bugatti, Mercedes-Benz, and Jacob & Co., plans to launch 12,000 new units in the coming three months. The company is also set to receive over $1 billion (AED3.67 billion) in cash flow from projects that will be handed over during the same period.
Binghatti emphasized that Dubai remains one of the world’s top destinations for real estate investment, with a thriving market characterized by steady growth and a variety of investment opportunities for global investors.
“Dubai’s real estate continues to attract both end-users and investors, with the average price per square foot currently around $352, despite recent increases. This is just one-third of the price in London, which was $868 at the end of last year. Dubai’s price per square foot is also less than half of Singapore’s $765, and slightly more than half of Los Angeles’ $663,” according to Binghatti.
He further explained, “It’s not just about competitive prices—Dubai offers a range of exceptional services and facilities, from airports and hotels to restaurants. For instance, check-in and airport procedures are remarkably smooth and hassle-free. There’s also an emphasis on social security and comfort, such as female taxi drivers dedicated to families and women. These factors collectively enhance the quality of life, stimulate the market, and positively influence real estate prices.”
Binghatti also mentioned the company’s recent focus on land acquisition in key areas of Dubai, including Palm Jumeirah, Business Bay, and Al Jaddaf. “The company’s land bank is designed to meet projected demand for the next two and a half years, as we continuously expand our land holdings,” he clarified.
Regarding Binghatti’s expansion plans beyond Dubai, the company has established an international presence by opening an office in Riyadh, marking its entry into the KSA market.
“Our primary objective is to operate at our best capacity as a company. We place a high priority on delivering our projects on time, and in some cases, ahead of schedule. The Dubai Land Department has recognized us as the fastest real estate developer. We focus on timely delivery while ensuring high standards of quality by leveraging technology in real estate. Our vertically integrated business model, which includes our steel, joinery, and aluminum factories, plays a key role in maintaining quality across our projects, ensuring we provide value to both end-users and investors,” said Binghatti.
He continued, “Several factors are critical when assessing prime real estate, with location and brand association being among the most important. A prime example of this is our collaboration with Bugatti, one of the world’s top automotive brands. Bugatti Residences by Binghatti features the region’s only Riviera-inspired beach and a private car lift, allowing residents to park their cars in their own penthouses.”
Muhammad Binghatti also discussed the company’s initiatives for buyers with more modest budgets, pointing out that Dubai offers a diverse range of real estate, from ultra-luxury properties to more accessible options. He noted that it’s even possible to rent a studio in Dubai for $1,000.
“You can rent a studio in Jumeirah Village Circle for AED 45,000 annually. If you’re looking for a neighborhood closer to the city with more lifestyle amenities, Business Bay offers options at AED 65,000. The same range applies to dining—whether you opt for a meal costing AED 10 or dine at an upscale restaurant where prices can reach AED 2,000 to AED 2,500,” he explained.
Binghatti further added, “Our presence in all market segments, whether mainstream, luxury, or ultra-luxury, ensures that our products cater to a wide audience.”
He highlighted that $1 million (AED 3.67 million) can secure around 1,000 square feet in Dubai’s top locations, whereas the same amount only buys 172 square feet in Monte Carlo, offering just 20% of the value one would get in Dubai. “Dubai provides one of the best value propositions worldwide, if not the best overall,” Binghatti affirmed.
He noted that Dubai’s real estate market maintains a rental yield of 7% to 10%, compared to around 3% in London.
Binghatti also spoke about the company’s recent Sukuk listing, stating that the initial issuance was oversubscribed by 210%, with the follow-up tap reaching 420%, drawing 40% of demand from outside the UAE. “This overwhelming interest demonstrates global investors’ confidence in both the UAE’s economy and our performance as a company, as well as the international recognition of Binghatti Properties,” he said.
When asked about the possibility of an IPO, Binghatti responded, “We are a private family business with no immediate plans for an IPO, particularly given our strong cash flow position.”
On the topic of Emiratization, Binghatti described it as a national responsibility his company embraces. “I’ve directed our human resources team to prioritize this, as my goal is for Binghatti Properties to become the largest private incubator for UAE talent. We have young minds eager to learn, even those without experience, and they deserve opportunities. Our Emiratization efforts are not only focused on increasing local hires but also on implementing programs to support their development,” he emphasized.
He further mentioned that Binghatti was one of the first companies to introduce initiatives aimed at encouraging UAE real estate brokers, particularly recent graduates of the real estate regularization program. “We offered higher commissions to motivate them, and many successfully closed sales in our ‘Binghatti Hills’ project, marking the start of their careers in real estate brokerage,” Binghatti concluded.
