Growing Competition in Dubai’s Property Market
Dubai’s property market is witnessing an unprecedented level of competition as new developers join the fray, fueled by a surge in demand from both local and international buyers. In 2024, the market saw the emergence of developers like Amaal, founded by Abdulla Lahej, alongside Kasco Developments, Acube Developments, Source of Fate, and PO B1 Properties, all bringing fresh projects to the city’s dynamic real estate sector.
Surge of New Developers in the Market
According to Zhann Jochinke, COO at Cavendish Maxwell’s Property Monitor,
Out of the 40 new developers entering the market this year, approximately 50% are foreign entities debuting in Dubai.
This has contributed to the launch of projects by 142 developers so far in 2024, surpassing the 125 developers recorded throughout 2023.
Amaal’s Debut Project
Amaal introduced its inaugural Dh1.5 billion ($408 million) project, Amaal 8, in Mohammed bin Rashid City, featuring 512 units. The first phase sold out swiftly, with completion slated for the end of 2028. The company is planning global roadshows in China, Australia, and the UK to attract buyers, emphasizing how new developers are fostering a competitive and diverse market.
Diverse Developments Across Regions
PO B1 Properties launched the Serenova project in Dubai Silicon Oasis, valued at Dh206 million, while Source of Fate announced plans for Dh10 billion worth of projects in Dubai and Ras Al Khaimah over the next year. Kasco Developments and Acube Developments are also contributing with innovative projects tailored to meet unique market needs.
Luxury Property Boom
The luxury real estate sector is thriving, driven by ultra-high-net-worth individuals relocating to Dubai. Knight Frank estimates global investors will spend $4.4 billion on Dubai properties in 2024, marking a 76% increase from last year. Prime villa markets recorded capital gains of 38.1%, further highlighting the city’s allure as a global luxury destination.
Investor Protection Measures
Regulations have tightened to safeguard investors, with developers required to provide a minimum 30% financial guarantee before launching off-plan sales. This includes completing 30% of construction, securing a bank guarantee, or depositing equivalent funds into a RERA escrow account, ensuring financial stability and investor confidence.
Sustained Momentum in Real Estate
Despite intense competition, Dubai’s real estate market remains robust. Large developers continue to sell inventory rapidly, often within days of launch. New entrants, while slower, are also achieving significant sales. As Abdulla Lahej states, Dubai’s resilience ensures the momentum will persist, underscoring the city’s enduring appeal as a global real estate hub.
Source: The National News
