Dubai Residential Property Market The Global Investment Hot Spot In Year 2024

We all know that Dubai is a dream city for many people, whether it is investors, tourists, families, or even businesses. So, it was no surprise that in 2023, Dubai was considered a goldmine for investors and that trends remained the same for 2024. Apart from having world-class infrastructure, a tax-free environment, and an incredible lifestyle, Dubai is home to a wide range of unique and amazing properties that investors have been eyeing for a long time. So, what are the factors that made the Dubai residential property market a global hot spot for investment in 2024? Let’s have a look at them in detail.

Transparent and Regulated Market

Everyone wants to invest in a market where everything is regulated, and sales are completely transparent. Dubai’s real estate market has fulfilled all these requirements and has become one of the best and most transparent markets in the world. Even now, there are no signs of slowing down this city’s property market. Compared to last year, property transactions in Dubai’s residential market increased by 19.3% in Q1 of 2024. That is why most global investors are attracted to this market, which has abundant opportunities.

Golden Visa

Since 2019, when the Golden Visa (a ten-year residency visa) was introduced, around 150k people have obtained it. There are several other categories to which you could apply, but one of the largest ones was to apply through property investment in Dubai. You can obtain a Golden Visa in Dubai if you invest or own a property in the real estate market of Dubai with a value of over AED 2 million. This long-term visa scheme has caught the attention of many investors around the globe.

High Rental Yields

Dubai has become a hot spot for global investors because of its higher rental yields. It is ranked among the top cities in the world with higher ROI on rental properties. The booming tourism industry and the influx of expats have created a strong demand for short and long-term rentals, in which the investors can enjoy an exceptional ROI through rental income, especially in the prime locations of Dubai, such as Dubai Marina, Downtown Dubai, and JBR.

Tax-Free Environment

The tax-free environment of Dubai is a major perk for investors. Everyone wants to live a tax-free life, and Dubai has provided this to its citizens. There is no income tax on rental income, capital gains, or ROI. This tax-free living has given investors the opportunity to maximise their ROIs and made Dubai an attractive place for foreign investors.

Growing Tourism Sector and Population

Dubai’s tourism industry continues to grow and expand, as millions of people visit this city every year. In the first quarter of 2024, the city’s population grew by 25,000, while Dubai welcomed 3.7 million new tourists. That is why the demand for holiday homes and short-term rentals is getting higher every day. Investors are capitalising on this opportunity by investing in properties that most tourists demand, such as vacation villas and furnished apartments. According to the current situation, holiday homes in Dubai can achieve their annual projection in up to six months, while the waterfront properties might achieve this feat more quickly. 

Stable Economy

Dubai has had a stable and resilient economy for decades, which is why global investors and expats are attracted to this city. It is one of the globally hot places for trading, tourism, finance, and real estate. That is why Dubai’s GDP growth projection is 5.2% in 2025. The government of Dubai has a strong commitment to diversifying the economy to provide a stable investment environment. So, they introduced a strong legal framework and transparent property laws in the market to gain the trust of investors. 

Affordability

This might be surprising for many, but Dubai is known as one of the most affordable markets in the world. In 2023, the average per-square-foot sale price in the market was AED 1,257, which is down from its last high in 2014. It was one of the lowest in the world compared to other global markets such as New York, London, and Paris. In 2024, the average sale price per square foot is AED 1,325. Even with that increase, the Dubai property market remains one of the most affordable in the world compared to other global markets. 

The property sale prices in Dubai start as low as AED 450k for a studio apartment. Moreover, the city also has attractive payment plans at fairly lower interest rates, which makes it easier for first-time buyers to buy a property in Dubai’s real estate market.

Dubi’s real estate market became a global hot spot for investors in 2024 due to its innovation, growth, and resilience. The government’s commitment to creating a sustainable and investor-friendly environment ensures that the city remains the top choice for global investors.