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This, along with the growing preferences for community-focused developments leading to an increase in demand for mid-to-high tier properties in well-developed communities.
Dubai’s diverse property options and favourable investment climate are likely to continue attracting international investors.
Buyers in Dubai’s residential real estate market are increasingly looking for ‘value-for-money’ propositions, with developments that strike a balance between price and long-term return on investment are gaining traction with investors and end-users alike, industry players said.
This, along with the growing preferences for community-focused developments that offer schools, retail options and fitness and recreational spaces are leading to a spike in demand for mid-to-high tier properties in well-developed communities, they said.
Home buyers’ location preferences have also widened, with investor appetite looking strong for properties across the city, triggering a surge in demand for areas like Jaddaf Waterfront and suburban areas like Meydan and Dubai Hills Estate.
“From a price perspective, while there remains significant demand for luxury properties, there is also a clear preference for properties that offer strong value propositions,” Murad Saleh, Co-founder and CEO of AMWAJ Development, a leading Dubai developer, told Arabian Business.
“Investors and end-users alike are looking for developments that strike a balance between price and long-term return on investment, with mid-to-high tier properties in well-developed communities being particularly attractive,” he said.
Yogesh Bulchandani, Founder of Dubai-based real estate company Sunrise Capital, said the demand for off-plan properties is also rising fast, with buyers attracted to the potential for capital appreciation during the construction phase.
“Additionally, there is a growing preference for larger living spaces, as remote work continues to influence lifestyle choices,” Bulchandani told Arabian Business.
Dubai’s new property preferences
Industry insiders said unique developments with strong potential for capital appreciation are seeing high demand amidst evolving new price preferences in Dubai’s property market.
“The new breed of buyers are willing to pay a premium for properties that offer unique features and a strong potential for appreciation,” Mustafa Al Kaissi, Chairman, KASCO Developments, told Arabian Business.
“Waterfront properties also continue to be popular due to their short-term rental appeal,” he said.
Al Kaissi said currently, there is also a strong demand for properties that offer a blend of luxury and practicality.
“Buyers are showing a preference for properties with modern designs and high-quality finishes,” he said.
The KASCO top executive said the emirate property market, of late, is also seeing a healthy trend of widening of locational preferences by buyers, both overseas and domestically.
“Investor appetite is looking strong for properties across the city.
“We’ve noted recent surges in demand for areas like Jaddaf Waterfront,” he said.
The AMWAJ Development Co-founder said their company is also seeing a notable trend towards family-oriented properties, particularly in suburban areas like Meydan and Dubai Hills Estate.
“Buyers are increasingly looking for community-focused developments that offer schools, parks, and retail options, rather than fussy about locations,” he said.
Saleh said the market is also seeing a surge in demand for fully furnished, ready-to-move-in properties, with the growing popularity of co-living and serviced residences, especially among young professionals and expatriates.
“Buyers are increasingly seeking homes that offer modern amenities, smart home technologies, and multi-functional spaces that cater to both work and leisure,” he said.
Home buyers in Dubai have expanded their location preferences, driving strong demand for properties in Jaddaf Waterfront, Meydan, and Dubai Hills Estate (pictured).
European investors flock to Dubai’s real estate
Industry players said the return of Russian investors to the Dubai market following the discontinuation of the 8 per cent preferential mortgage rate for new buildings in Russia since July, and the growing interest from French investors has triggered a renewed demand cycle in the Dubai property market.
They said there is a growing number of investors from France currently investing in Dubai’s residential properties market as the payback period in Paris is about twice compared to Dubai.
Bulchandani said the influx of French investors is particularly noteworthy, as the 15-20 year payback period in Paris compared to Dubai’s average payback period of around 7-10 years is significantly more appealing.
“This trend potentially indicates a European shift towards more lucrative investment opportunities and reinforces Dubai’s position as a global real estate hub,” he said.
Saleh said there is a noticeable rise in inquiries from both Russian and European, including French, investors, particularly in premium and innovative projects in the UAE.
“This trend underscores Dubai’s growing appeal as a leading real estate market, offering long-term value for international investors,” he said.
KASCO Developments chairman Al Kaissi said the re-entry of Russian investors to the Dubai market is of no surprise, as the discontinuation of the preferential mortgage rate in Russia has undoubtedly prompted a search for alternative investment opportunities.
“Within the opportunity landscape of those investors, I imagine that Dubai is and will continue to be an attractive option,” he said.
Waterfront properties remain popular due to their appeal for short-term rentals.
As for the rising French interest in the city’s real estate market, Al Kaissi said: “The theme with French investors is one that we continue to see across most European countries.”
Pricey properties with low ROIs (return on investments) and an unfavourable tax and legal framework are spurring many to look elsewhere.
“We expect the flow of capital from Western Europe to continue barring any drastic changes,” he said.
