There have been three cycles of expansion in Dubai’s real estate industry thus far. However, it saw two boom-bust cycles: the first occurred after the global financial crisis of 2008, when the market experienced its initial meltdown, and the second occurred during the Covid-19 pandemic.

Industry participants believe that after the three and a half year surge, the market will continue to grow steadily and slowly rather than collapsing. This is a result of the increased number of end customers and responsible investors in the local market within the business.

Experts are optimistic that there won’t be another boom-bust as the third growth cycle draws to a close because of important measures like escrow accounts, the influx of billionaires, and end users who have been instrumental in stabilizing the market.

According to industry experts, the real estate market has evolved into a more mature and regulated sector, surpassing the boom-bust cycles of the past.

Over time, Dubai’s real estate industry has undergone tremendous change, moving away from the previous boom-bust cycles and toward a more stable and sustainable growth trajectory. Hassan Hijazi, group CFO of Amwaj Development, stated, “This maturity is driven by several factors, including the implementation of stringent regulatory frameworks, enhanced transparency, and a strategic focus on long-term economic diversification.”

He also mentioned how Dubai has become more appealing to a wider spectrum of investors. He asserts that the city’s cutting-edge innovations, prime location, and first-rate infrastructure attract foreign investors, high net worth individuals, and expats alike.

Hijazi stated, “Dubai’s status as a global investment hub has been reinforced by the legacy of Expo 2020 and numerous government initiatives, like the Golden Visa program, which have also played a vital role in attracting and retaining investors.

Not a balloon, nor artificial

According to Samana Developers CEO Imran Farooq, it would be incorrect to describe Dubai’s rise as “artificial or a balloon” because the city has developed a robust multi-national society and economic infrastructure over the course of the last 50 years.

“The city’s foundations support it towering and sturdy. Dubai has demonstrated this to the world by organizing major international events like UAE COP28, Dubai Expo 2020, and its excellent response to the Covid-19 pandemic. According to Farooq, it only makes sense that Dubai’s real estate market has advanced sufficiently to stop experiencing booms and busts.

Yogesh Bulchandani, founder and CEO of Sunrise Capital, said it’s clear to anyone who has seen the ups and downs of the sector that Dubai’s real estate market has shown exceptional resilience, defying predictions of a slowdown.

“While global property markets stutter, prices in Dubai are continuing to rise, signalling a break from the boom-and-bust cycles. The market’s strength is bolstered by buyers purchasing for occupancy, indicating the previously transient nature of Dubai is fading. Demand remains strong from Europe (and the UK), India, and South Asia, with an influx of wealthy investors and foreign buyers, leading to a more stable and mature real estate landscape in Dubai,” he underlined.

The founder and CEO of Sunrise Capital, Yogesh Bulchandani, stated that the extraordinary resilience exhibited by Dubai’s real estate market defies predictions of a slowdown. Bulchandani claimed that anyone familiar with the ups and downs of the industry can see this.

“Dubai property prices are rising, indicating a break from the boom-and-bust cycles, while worldwide property markets falter. Buyers buying for occupancy are supporting the market’s growth, suggesting Dubai’s once-transient character is eroding. With an infusion of wealthy foreign buyers and investors, demand from Europe (including the UK), India, and South Asia is still robust, resulting in a more stable and developed real estate market in Dubai, he emphasized.

No decrease in expenses

The CEO of Samana Developers states that he does not foresee a drop in prices in the next five years because the benefits of investing in Dubai real estate are so great.

The number of investors from Europe, the CIS, and China has increased recently. It is evident that demand is high in every market sector. Foreign institutional investors find the market more attractive when prices are higher. It makes things easier for everyone involved and helps Dubai strengthen its real estate sector even more,” he said.

Protect against fluctuations in the market

According to Bulchandani, investors are drawn to Dubai because of its comparatively cheaper real estate costs when compared to places like Hong Kong, Singapore, and New York, but this doesn’t mean they won’t fluctuate.

He emphasized, “Global economic interconnections and investor behavior still pose risks of cyclical trends, even though the current trend of sustained price increases might suggest maturity.”

Hassan Hijazi, meantime, pointed out that Dubai’s comparatively cheaper real estate costs when compared to places like Hong Kong, Singapore, and New York do, in fact, provide as a buffer against major market corrections.

Due to its affordability, a wide range of investors and inhabitants find the Dubai real estate market appealing, as does the city’s ongoing development, safety, high standard of living, and proactive government initiatives.

Furthermore, market stability is guaranteed by the government’s proactive efforts to control the dynamics of supply and demand. The intrinsic value proposition of Dubai’s real estate market places it well to avoid significant corrections, guaranteeing continuous investor trust and market resilience, even though certain price adjustments are normal in any real estate cycle, according to Hijazi.