Many investors in Dubai’s property market are now becoming increasingly selective about where they invest, according to industry experts.
They noted that while the Covid-19 pandemic sparked a major boom, that momentum has slowed, with buyers now focusing more on long-term factors like amenities, location, and access to transportation.
Diverse Market Sentiment
At the “Game-Changers 2.0 Real Estate Summit” held in Dubai on Friday, The National interviewed developers, agents, and sales professionals to understand the market’s current dynamics.
Firas Al Msaddi, CEO of Fam Properties and the summit’s organiser, described the market as being at a peak, with strong interest in both resale and off-plan properties.
However, he observed that buyers are becoming more discerning, as a growing number of off-plan properties become available. He attributed this to a surge of new developers entering the UAE post-boom — not all of whom are delivering premium products.
“Every buyer, investor, and broker is now highly attuned to the actual value a property offers,” he explained.
“People are taking the time to research, evaluate, and educate themselves before committing. Even if there’s a temporary dip due to increased supply, demand will eventually catch up.”
Mohamad Abbas, sales manager at Dubai Holding Real Estate, said that after 12 years in the industry, he doesn’t foresee the boom ending anytime soon.
“The market might stabilise in a couple of years, but I don’t believe it will decline,” he said.
He added that in recent months, they have sold villas worth hundreds of millions of dirhams, with the ultra-luxury segment remaining robust. At the same time, budget-conscious buyers are moving to more remote areas, and international demand continues to grow.
“We’re seeing buyers from all over the globe,” Abbas said. “It’s like the United Nations is investing with us.”
Earlier this week, The National reported on the harsh realities of the property industry — noting that only about 20 per cent of agents are achieving real success, a stark contrast to the glamour on display at Friday’s event.
Key Drivers of Growth
Dubai’s housing sector surpassed Dh500 billion ($136.1 billion) in sales for the first time in 2024, with strong demand across villas, townhouses, and apartments.
This growth is supported by relaxed visa regulations, enhanced safety, expanding infrastructure, increased business activity, lower interest rates, and a continually growing population.
According to consultants ValuStrat, about 90,000 new residents moved to Dubai in Q1 2025. The Dubai Statistics Centre reported the emirate’s population stood at 3.94 million as of Friday.
Top-performing areas currently include Jumeirah Village Circle, Business Bay, Dubai Hills Estate, Dubai South, and Motor City.
However, despite headline-grabbing luxury launches and booming sales, predicting when the market will cool remains difficult.
The summit on Friday sold out, attracting 2,000 attendees. Some even paid Dh30,000 for VIP front-row seats.
The event focused on sharing updated trends, rules, and regulations with brokers and agents, in collaboration with the Dubai Land Department. Artificial intelligence was a hot topic, with a Fam Properties report noting that AI is drawing more young buyers into the market by providing easier access to data. Still, the ongoing boom remained a primary concern.
Signs of Caution
Manan Law, managing partner at mortgage firm Equifirst, said the post-Covid surge that began in 2020 has come to an end, as the global context has shifted.
He pointed out that while Dubai and the UAE often thrive during global instability, investors expecting the massive 50 per cent returns seen earlier would now have to adjust to more modest gains of 10–12 per cent.
“Back in 2020, you could invest blindly and still come out ahead,” he said. “But today, you need to examine the developer, the neighbourhood, the amenities, and future developments nearby.”
Law warned that in the rush to invest, some people are overlooking that property is a fixed, illiquid asset that requires time to appreciate.
“It’s not like a stock that rises 20 per cent in a year,” he said. “Real estate is about long-term growth.”
He acknowledged the market’s ongoing maturity, noting that mortgage financing now makes up 40 per cent of property sales in Dubai, aided by favorable interest rates.
“To boost investor confidence, there’s a growing shift toward financing options,” he concluded. “It’s part of the market’s natural evolution.”
