Dubai has been on a financial surge for most of the past decade. But with a renewed vigour for expanding the real estate market, the country has achieved what it claims as its highest point in almost fifty years.
There are many reasons as to why this particular period is seeing a boom in Dubai’s real estate sector. In the post-pandemic era, it commands almost 1/3rd of the price index and 10% of the GDP. Last year, there were close to 90,000 residential properties sold in Dubai. Experts claim that the numbers for 2023 can top even this.
But, the question remains – why now? And why the real estate industry?
A Post-pandemic Dubai
For many countries, the pandemic was an economy-shattering experience. But Dubai weathered the entire COVID season without closing down its tourism industry, one of the most vital sectors of its economy apart from oil.
As a result, the last year witnessed a horde of Russian investors buying up land in the area. Experts point towards the recent conflict with Ukraine as a probable cause for this move.
Dubai clearly has land to sell, and the high value it raises for its properties is well met by customers. With sales at an all-time high, 2023 saw its bourse peak at 4022. This is the highest it has reached since 2015. The overall financial market gains grew to 25%, making it another peak point for the city-state’s economy.
State backing is also playing a major role in the process. Multiple high-rise buildings are being built across the city to further boost the post-Eid sales period.
Real Estate Is The New Oil?
The UAE economy has primarily thrived on oil. But now, the course is changing. With the rise of Electric Vehicles across the globe and a strong affinity towards environmental concerns, the sale of petroleum is reducing across the board.
On the other hand, Abu Dhabi is the UAE’s primary oil producer, and also a strong competitor for Dubai. So, it makes sense that Dubai is strengthening its real-estate sector as a means of competing with the oil economy.
With the right efforts Dubai has once again proven that it’s one of the most important sectors of the UAE. This year the city-state’s financial market overtook the S&P 500.
