Dubai’s real estate market is set to witness significant growth with double-digit returns expected, according to Hussain Sajwani, the founder and chairman of Damac Properties. The chairman expressed his bullish outlook for the sector, citing the city’s tremendous growth potential as a key factor.
Damac Properties has been focusing on the city due to its increasing appeal to individuals from the US, Asia, and Europe seeking job opportunities or looking to live or trade in Dubai. The company recently launched Damac Coral Reef in Dubai Maritime City and introduced Morocco 2 at its third and upcoming master development Lagoons, following the successful launch of the Morocco 1 cluster in May.
Sajwani also highlighted the attractiveness of Dubai to Europeans who want to make the emirate their home due to factors such as taxes, economic conditions, and regional instability. This interest was evident when the group launched its second mall in Dubai last week.
The chairman is also optimistic about the potential impact of Chinese investors on the Dubai property market. With China lifting nearly three years of COVID-19-induced restrictions, allowing foreigners into the country and its citizens to travel abroad, there has been a surge in demand for travel and investments from China.
Post-pandemic, the local property market has seen unprecedented demand, particularly in the premium market segment. Research by Savills revealed that real estate transactions soared by 44% in the first half of 2023, reaching nearly 60,000 units. This trend is expected to continue, driven by high investor confidence, leading to record deals this year.
Sajwani anticipates double-digit growth in prices for both Damac investors and the overall industry. He also expects the UAE to experience robust economic growth in the coming years, backed by its strong leadership, over $1 trillion worth of sovereign wealth assets, stable currency, and diversified economy.