Global inflation, a flood of Russian investors and pent-up demand are driving booming property sales in Dubai, according to local real estate experts.
Amid geopolitical tensions and cost-of-living crises around the world, many investors are choosing Dubai as an attractive alternative to other metropolitan hubs, Abdullah Alajaji, founder of the UAE-based property brokerage Driven Properties, told Al Arabiya English.
With inflation reaching its highest peak in up to 40 years across parts of the globe, investing in property in Dubai – where the price tag of homes is a “fraction” of comparable properties in major international hubs such as Singapore and London – is becoming a more appealing option, he said.
“If you look at London, Paris, New York and Tokyo and so on… the prices in Dubai are a fraction of prices of properties and we’ve seen now wealthy and affluent individuals coming in from Europe and Russia and so on and they look at prices in Dubai and they say, ‘Okay, well, this is this is relatively inexpensive, and I’m willing to deploy this capital.”
Other factors are driving overseas interest in Dubai’s property market, said Alajaji.
His firm, a member of Forbes Global Properties, an invitation-only consortium of leading luxury real estate firms, has seen a boom of interest from investors.
With inflation, commodity prices have soared pushing up the cost of building materials, meaning, globally, developers are finding it most costly to develop. This is set against a backdrop of weakened global currencies against the US dollar.
However, Alajaji said the UAE dirham has remained strong, with the cost of importing goods far cheaper compared to the global average, meaning local developers are not grappling with the same cost hikes.
High property yields
Meanwhile, property yields in Dubai remain extremely competitive when compared to other major urban cities.
