DO NOT BUY A PROPERTY IN DUBAI WITHOUT WATCHING THIS - 2024 DUBAI REAL ESTATE MARKET UPDATE

Summary

In this podcast, Dr. Anand, CEO of Empowered Performance, discusses the booming Dubai real estate market, predicting continued growth through 2024 due to the D33 agenda and increasing population. He highlights the city's transformation, making it a unique investment opportunity with factors like the 10-year golden visa, casinos, and global talent attraction. Dr. Anand also addresses concerns about housing shortages and the influx of high-end residential projects, emphasizing the city's appeal to ultra-high net worth individuals.

Takeaways

• 📈 The Dubai real estate market is experiencing a continuous rise in prices for the fourth year, with an upward trend expected to continue for the next 2 to 3 years due to the city's growing population and economic initiatives.
• 🌐 Dubai's unique investment proposition is strengthened by the city's transformation since 2014, including new policies like the 10-year golden visa, the D33 economic agenda, and a focus on sustainability and green building standards.
• 🏠 There is a significant housing shortage in Dubai, particularly in the ultra-high net worth and affordable home segments, which is projected to persist for at least the next five years.
• 📊 The market's performance has exceeded expectations, with a 17.8% increase in off-plan sales and a 35.6% increase in overall sales, outpacing predictions and highlighting the strength of Dubai's real estate market.
• 🏢 The city's economic growth and development plans, such as the D33 agenda, are directly influencing the real estate market's growth, with a focus on doubling the economy and attracting a significant population increase.
• 💰 The average price per unit in Dubai has risen significantly, reflecting the high demand for luxury properties among ultra-high net worth individuals and the overall increase in property values.
• 🏡 There is a trend towards more sustainable and high-quality residential developments, with an emphasis on branded, high-end properties that cater to the lifestyle preferences of wealthy buyers.
• 🌍 Dubai's attractiveness as a global city is bolstered by its ranking as the second most stable economy and its position as a top destination for talent, education, and business opportunities.
• 🎰 The upcoming introduction of casinos in Dubai is expected to bring a new type of buyer to the market, further driving demand for premium and high-end properties.
• 📉 The traditional real estate cycle of peak and correction is no longer applicable to Dubai due to the city's unique economic and demographic growth drivers.
• 📈 The market's booming sales and rental increases, along with the high volume of transactions, indicate a vibrant and active real estate market in Dubai with significant opportunities for investors.

Q & A

What is the current state of Dubai's real estate market according to the discussion?

Dubai's real estate market is in a state of consistent growth, with prices rising for the fourth consecutive year. It is expected to continue growing for the next 2 to 3 years due to various factors including the D33 agenda, population growth, and global attention.

What is the D33 agenda and how does it influence the real estate market?

The D33 agenda is a plan by Sheikh Mohammed to double Dubai's economy in the next 10 years. This economic growth directly influences the real estate market by creating a demand for commercial and residential spaces, contributing to the upward trend in property prices.

Why is there a housing shortage in Dubai and how long is it expected to last?

The housing shortage in Dubai is due to a combination of factors including population growth, the D33 agenda, and the influx of high-net-worth individuals. This shortage is expected to persist for at least the next 5 years.

What factors make Dubai a unique investment proposition for international investors?

Dubai's unique investment proposition includes its stable economy, the D33 agenda, a growing population, the introduction of the golden visa, and the city's positioning as a global talent magnet with world-class infrastructure and amenities.

How has the cost of construction materials impacted the real estate market in Dubai?

The cost of construction materials such as cement, steel, and glass has significantly increased over the past decade. This has affected the real estate market by making property prices higher and making it difficult to compare the market of 10 years ago with today's market.

What trends are being noticed by brokers in the Dubai real estate market?

Brokers are noticing a trend towards more high-end, branded residential towers and an increase in demand for waterfront properties. There is also a movement towards more sustainable and green buildings as part of Dubai's aim for a platinum LEED city rating.

What is the impact of the golden visa on the real estate market?

The golden visa, which offers long-term residence possibilities, has increased the demand for ready homes. This has led to a significant increase in the sale of ready properties, contributing to the overall growth of the real estate market.

How has the rental market in Dubai been affected by the real estate boom?

The rental market has seen significant increases, with reports of 23% growth last year and a target of 20% for the current year. High rental prices have led to rental migrations within the city, with people moving to more affordable areas.

What are the implications of the upcoming casinos for Dubai's real estate market?

The introduction of casinos is expected to attract a new type of high-net-worth buyer to Dubai, potentially increasing demand for premium and high-end properties, especially in areas close to the casinos.

What are the views on the future of Dubai's real estate market in comparison to other cities like Macau?

Dubai is expected to outshine cities like Macau due to its comprehensive lifestyle offerings, economic infrastructure, and global appeal. While Macau's casino offering was unique, Dubai's diverse attractions and robust economy are seen as more sustainable for long-term growth in the real estate market.

Outlines

00:00

🏙️ Dubai Real Estate Market Outlook 2024

The first paragraph discusses the state of Dubai's real estate market and its projected growth in 2024. It highlights the unique investment proposition of Dubai, emphasizing the city's transformation over the past decade. The speaker, Dr. Anand, predicts a continued rise in property prices for the next 2-3 years, attributing this to the D33 agenda aimed at doubling Dubai's economy and attracting global attention. A housing shortage is identified, particularly in the ultra-high net worth and affordable home segments, which is expected to persist for at least five years. The conversation underscores the importance of being invested in Dubai's real estate market and the impact of new developments and branded high-end residential towers on market trends.

05:00

🌐 Factors Enhancing Dubai's Investment Appeal

This paragraph delves into the factors that make Dubai an attractive investment destination. It contrasts the city's status in 2014 with its current position, highlighting government initiatives that have bolstered Dubai's appeal. The discussion includes the introduction of a 10-year golden visa, the D33 agenda's focus on economic growth, and the projection of a population increase to 7.8 million by 2033. The paragraph also mentions the upcoming casinos, the Dubai 2020 project, and efforts to attract global talent and top universities, all contributing to a robust real estate market with rising rental demands and sales.

10:01

🌱 Sustainability and Quality of Life in Dubai's Real Estate

The third paragraph focuses on sustainability and the quality of life as key trends in Dubai's real estate market. It discusses the city's commitment to green building standards and the LEED City rating, as well as the selection of Dubai to host COP 28, reflecting its environmental goals. The paragraph also addresses the preferences of younger buyers for sustainable communities and the city's attractiveness for families due to its high quality of life, business opportunities, and health and safety standards. The discussion points to the importance of these factors in driving the demand for real estate in Dubai.

15:02

📈 Dubai's Economic Agenda and Real Estate Growth

This paragraph examines the connection between Dubai's economic agenda and the growth of its real estate market. It emphasizes the importance of aligning real estate development with the city's economic goals, as outlined in the D33 agenda. The speaker addresses concerns about an oversupply of properties and the potential for a market bubble, explaining that the expected population growth and the need for housing will absorb the incoming inventory. The paragraph also discusses the role of first-time homebuyers and the impact of rental migrations on the market dynamics.

20:04

🎰 The Impact of Casinos and Luxury Developments on Dubai's Market

The fifth paragraph discusses the impact of upcoming casinos and luxury developments on Dubai's real estate market. It suggests that the introduction of casinos will attract a new type of buyer and investment to the city, competing with other regions that have similar offerings. The paragraph also highlights the shift in focus from other cities to Dubai due to its comprehensive lifestyle offerings, economic infrastructure, and global appeal. The conversation points to the rise of high-end branded residences and the increasing demand for luxury living spaces as indicators of the market's upward trajectory.

25:06

📝 Sales Strategies and Negotiating in Dubai's Booming Market

The final paragraph teases the next segment of the podcast, which will focus on sales strategies and the art of negotiating a good deal in Dubai's thriving real estate market. It sets the stage for a discussion led by Dr. Anand, who is introduced as an expert in the field, and promises valuable insights for agents and investors alike. The summary suggests that upcoming topics will cover effective sales techniques and strategies for securing favorable outcomes in a competitive market.

Keywords

💡Dubai real estate market

The Dubai real estate market has been robust across various sectors, supported by the Emirate's status as a safe haven for investments. It has seen significant growth in population and tourist arrivals, contributing to the market's upward trajectory. For instance, the population crossed 3.6 million as of June 2023, and tourist arrivals increased by 19.9% from January to November 2023, reaching 15.4 million tourists.[^5^]

💡Real estate investment

Dubai has emerged as a unique investment proposition due to its strategic initiatives and economic growth. The government's agenda to double the economy in the next 10 years, along with the population growth projected to reach 7.8 million by 2033, makes it an attractive destination for real estate investors. The market's performance in 2023, with an increase in sales prices and rents, further underscores its potential as an investment opportunity.[^5^]

💡Housing shortage

Dubai is facing a housing shortage, particularly in the ultra-high net worth and affordable home categories, which is expected to persist for at least the next 5 years. This shortage is driving up prices and making it a seller's market for real estate in Dubai.[^5^]

💡Sustainability trends

Sustainability is a growing trend in Dubai's real estate market, with an emphasis on green buildings and communities. The city is aiming for a platinum rating with the LEED City rating councils, indicating a high priority on sustainable development. This trend is especially important to younger buyers who are conscious of environmental impact.[^5^]

💡High-end residential towers

There is a noticeable trend towards the development of high-end residential towers in Dubai, with branded residences such as Mercedes-Benz Tower, Bugatti residences, and W residences being launched. These luxury offerings are attracting a new class of buyers seeking a premium lifestyle.[^5^]

💡Rental migrations

Rental migrations are occurring within Dubai as people move from more expensive areas to more affordable ones. This internal migration is causing an increase in rental prices across different communities, as tenants seek more cost-effective living options.[^5^]

💡Off-plan sales

Off-plan sales in Dubai's real estate market have seen significant growth, with an increase of 41.0% in the first half of 2024. This indicates strong investor interest in upcoming projects and confidence in the market's future growth.[^2^]

💡Golden Visa

The introduction of the 10-year Golden Visa in Dubai has been a major factor in attracting investors and residents to the city. It has made the purchase of ready homes more appealing due to the long-term residence possibilities it offers.[^5^]

💡Population growth

Dubai's population growth is a key driver of the real estate market. The city's population has grown to over 3.6 million as of mid-2023, and it is expected to reach 7.8 million by 2033. This growth is creating a demand for housing and contributing to the market's vibrancy.[^5^]

💡D33 Agenda

The D33 Agenda, led by Sheikh Mohammed bin Rashid Al Maktoum, aims to double Dubai's economy in the next 10 years. This ambitious plan is expected to significantly influence the growth of the real estate market by attracting more businesses and residents to the city.[^5^]

💡Casinos

The introduction of casinos in Dubai is expected to bring a new type of buyer to the market, potentially increasing demand for premium and high-end properties. This development is seen as a significant factor that will contribute to the further growth of Dubai's real estate market.[^5^]

Highlights

Dubai's real estate market is experiencing its fourth consecutive year of rising prices and is expected to continue this upward trend for the next 2 to 3 years.

Dubai's D33 agenda has captured the world's attention, leading to a significant increase in population and contributing to the housing shortage expected to last for at least the next 5 years.

Dubai is positioned as a unique investment proposition due to factors such as the 10-year golden visa, economic growth plans, and the influx of global talent.

The traditional real estate cycle no longer applies to Dubai due to government initiatives that have broken the cycle and continue to drive market growth.

The cost of construction materials and the city's population growth have significantly increased, making comparisons between real estate of 10 years ago and today invalid.

Sustainability is becoming a key focus in Dubai's real estate market, with developers aiming for green building certifications and the city targeting a platinum LEED rating.

Dubai's population growth and demand for quality living have led to rental increases, indicating a healthy and active real estate market.

The upcoming opening of casinos in Dubai is expected to attract a new type of high-net-worth buyer, further driving the luxury real estate segment.

Dubai's real estate market is seeing a shift towards more high-end, branded residential towers, reflecting the city's appeal to millionaires and ultra-high-net-worth individuals.

Developers in Dubai are continuously launching new projects in alignment with the city's economic agenda and the demand for residential and commercial spaces.

Dubai's housing shortage is driving up the prices of ready properties, with a significant increase in transaction volumes in the affordable category.

The introduction of the 10-year visa in Dubai is making the real estate market more attractive to first-time home buyers and investors alike.

Dubai's real estate market is witnessing an internal migration trend, with residents moving from more expensive to more affordable areas, impacting rental prices across the city.

The upcoming high-end residential projects in Business Bay and JBC are indicative of the market's shift towards more luxurious offerings.

Dubai's real estate market is set to benefit from the city's growing prominence as a global destination for tourism, business, and luxury living.

The podcast discusses sales strategies and the importance of negotiating in the real estate market, highlighting the expertise of Dr. Anand in this area.

Transcripts

the billion doll question what is the

state of Dubai's real estate market and

where are you seeing it go in the year

2024 what factors do you think make

Dubai a unique investment proposition

for them there's a big difference in the

10-year-old Dubai and the 2024 Dubai the

cost of everything has gone up so much

so how can you compare real estate 10

years ago to real estate today where are

you seeing the developers or the new

trends in the market heading towards

what are your thoughts about that about

all the inventory which is going to come

into the market to find a good Villa or

a townhouse today is a challenge Dr

Anand we working with clients where

there's just not enough inventory all

the new launches that are happening in

Business Bay for example Mercedes-Benz

coming up with their Tower benatti

coming up with Bugatti residences we

have the W residences the masonis the

Pagan you have all of these branded

high-end residential Towers everyone is

I believe moving a bit more up Market as

well and I think that's that's one of

the trends that we as Brokers have

noticed in most of the communities the

entire sales pitch for rack was that

they would be the casino I mean I still

do believe that there is some value

there but Dubai is Dubai at the end of

the

[Music]

day hello everyone and welcome back to

another episode of Springfield talks

today's guest is someone that I really

look up to is someone that I think

everyone in the market really looks up

to and I'm sure if you're an agent and

you're watching this video or you're

related to devis real estate market at

all you probably have guessed who I'm

here with I'm here with Dr Anand the CEO

and sculptor of empowered performance

it's such an honor to have you here Dr

Anand thank you for taking the time out

to come here far thank you for having me

once again it's always amazing

conversations that we have together

because you're someone with so much

in-depth knowledge about the market and

every time he's come in to train our

team it's been a power packed session

you know everyone is very excited and

when I told a few people that you were

coming on my podcast today they were

messaging me they're like oh make sure

to ask Dr Anan this question make sure

to ask Dr Anan this question so let's

get started let's get into it so Dr

Anand first question the billion dooll

question what is and how is the state of

Dubai's real estate market and where are

you seeing it go in the year 2024 okay

uh we are into our fourth record year

straight year running of prices

consistently Rising it's going to go up

for the next 2 to three years for sure

very very simply because shik Muhammad's

agenda the d33 is ensuring that we have

caught the Market's attention the

world's attention and the population is

coming in in large numbers so I will

probably later in the podcast talk a

little bit more on d33 but to keep the

answer very short to this one we are on

an upward roll prices are going to

continue to grow all major newspapers

have carried their headlines Dubai is

facing a housing shortage in the ultra

high net worth as well as the affordable

home category and that shortage is

staying for at least the next 5 years so

if you're in a great space in the market

right now absolutely no problem in

selling real estate in Dubai if you're

an investor and you're not in Dubai

you're a big time loser I have to agree

with that being on the other side on the

sales side of things the market has been

extremely boom booming every project

that is coming out is selling out in

record time uh but of course people

always do like to ask how much longer is

this bull run going to last so we've

heard it from you yourself that another

two years hopefully but for the

international investors that are

watching this podcast what factors do

you think make Dubai a unique investment

proposition for them okay uh to

understand that question I think let me

share a little bit of information before

that every person you meet particularly

in the last one year or so were getting

concerned that we were reaching close to

the 2014 peak in fact all articles were

were talking about it that Dubai has not

yet reached 2014 implying once we hit

that the correction is going to start

and the market is going to fall there

was no way that was going to happen and

if if you look at where we sit today we

hit the peak in November and prices are

still continuing to rise now again it's

purely a historical reference that

they're doing because they're looking at

what happened in the previous Cycles in

historically I mean historically in the

real estate cycle not just in Dubai

globally once your prices Peak a

correction happens and you have two to

three years of a uh slow down and the

prices do drop but that is not happening

anymore the traditional cycle of

property does not exist exist in Dubai

anymore we have bro broken that cycle

because of the brilliant initiatives of

the government so let's let's understand

one thing very simply here in

2014 when you had the correction

starting to happen after the peak the

Dubai of 2014 is not the Dubai of

2024 so you cannot be looking at that

Dubai which did not have the magnetic

appeal yet to bring people in in 2014 we

never had a 10-year golden Visa so when

property was ready it wasn't going to

get picked up as quickly as now if you

look at articles that have come out just

today in the property news.ua uh if you

go to their page you will see that ready

homes the percentage of increase of sale

has jumped from 38% to 44% and one major

factor for that has been the 2 million

you know the drop from the earlier 10

million to 2 million for the golden Visa

so when the ready homes are available

people are taking it because of that we

never had the d33 agenda of shik

Muhammad to double the economy in the

next 10 years we never we never had the

population that is now projected to grow

by 2.5 million in just the next 10 years

up to 2033 and and then to 7.8 million

so we did not have those people coming

in we never had the commercial gaming uh

regulation Authority when now we have

the casinos coming in which is going to

be bringing a completely different kind

of player into the market we're excited

about that we never had a district 2020

we never had Dubai positioning itself as

the Global Talent magnet which shik

hamdan announced late last year that's

what we becoming part of the d33 agenda

and now the s33 the social agenda is to

attract the top universities of the

world we have some very good

universities in Dubai for the Howards

the yales the mits the stanfords are now

going to be targeted and invited into

Dubai can you imagine a Howard coming

here and they haven't gone anywhere else

so we never had the city that we have

today compared to before we now the

second most stable economy in the world

the US News and World reports so number

one being Switzerland of course in terms

of the top 10 power cities globally we

are number three The Economist survey

that came out in August of last year so

you cannot be looking at the Dubai of

2014 and saying that's where we are

today and therefore the prices are going

to drop every major newspaper has

carried the headline that we are facing

a housing shortage and if we have time

in this podcast I can even explain by

how much we have the shortage and the

reasons why we are facing it including

the affordable segment of housing true I

completely agree with you that there's a

big difference in the 10-year-old Dubai

and the 2024 Dubai even the cost of

making real estate the cost of cement

the cost of Steel the cost of glass the

cost of everything has gone up so much

so how can you compare real estate 10

years ago to real estate today if it's

only going to go so much higher plus the

number of people in the city itself has

grown tremendously so the actual demand

for Real Estate or end users has gone up

so much and I think it's quite evident

in the rental increases this year you

know last year 23% this year targeting

20% wow wow okay if you look at the

night Frank report last year in terms of

market performance we're talking sale

night Frank had predicted 13.5% we

closed the year on 17.8 % off plan

closed on 35.6% as an increase and

someone who doesn't look at this as an

opportune Market I'm sorry they're not

the real investors that's true I mean

13.5 if I remember correctly in that

night Frank report we were at the

highest in terms of compare like

compared to the I think the top 30 35 40

cities in the world Dubai ranked number

one with the highest expected growth at

13.5 so having such a bullish approach

and then beating those expect

expectations is truly commendable uh for

Dubai as a city and I mean I think all

of us in the sales side of things are

enjoying the perks and the benefits that

that brings to the buy uh Dr another

very interesting um thing that you

touched upon was the population

increase uh a lot of people are asking

what are the now the future trends that

you will see in the market that the

developers are um you know projecting in

their new projects sustainability is one

of the big talks of this year where are

you seeing the developers or the new

trends in the market heading towards

okay first thing when we talk about

sustainability the green Council the

economic green Council the green

buildings Council was set up by shik

Muhammad years ago years ago there was

already a requirement that future

buildings had to be green meeting

sustainability requirements Dubai as a

city is aiming to get into a platinum

rating with the leads City rating

councils so you can only get there when

sustainable is high on your agenda the

reason we were selected to host cop 28

is because we have demonstrated the

commitment as of a city towards becoming

Green in the future so sustainability is

important yes particularly with the

young younger buyers the new generation

buyers are very very conscious about

what we're doing to the planet and they

want to leave a healthy planet for their

own children so they are more interested

in communities that are sustainable

today so we definitely are going to see

more more of that but particularly in

terms of the the question you as which

is the population coming in the

population that is coming in here is

because everything in this city is

ticking all the boxes for giving you a

good quality life business opportunities

lifestyle opportunities education

opportunities Health Care opportunities

long long-term residence possibilities

now in the city the unique talent coming

in and global positioning health and

safety we have and cleanliness we are

number one for the last 3 years running

there is no reason why a family would

not choose to come to the city of Dubai

today and that is what is putting the

pressure on the housing market positive

pressure because we know for us in real

estate we've got some amazing business

in the years to come that's true that's

true Dr Anan tell us from perspective of

an international investor that is

looking at Dubai um you know

foreign investment uh in real estate

where do you see the opportunities that

lie today in Dubai which sectors or

which segments do you find most

attractive okay personally if you ask me

right now if as an investor if I'm

looking at something that is uh a

shortterm rental short-term Investments

waterfront properties are doing

extremely well waterfront properties you

find Dubai South is looking attractive

but you have to hold that for a certain

amount of time the JV the affordable

areas the jvc's jvts arjan the business

base the Town Square areas all of these

the furjan all of these areas have have

increased in demand uh a lot if you look

at JBC the highest volume of

transactions happened last year was in

that community so we are is booming all

these communities are doing really

really well now again what I've seen

happen is Dubai land is also picking up

uh right now but for me at this point

Waterfront communities is the place to

be there is just so much coming in

particularly now when you're having the

ultra high net worth people coming into

the city or homes of $10 million and

above $25 million and above we're number

one on the planet already there is no

City that can hold a candle to us last

year we were number four behind New York

was number one vas was number two and

London was number three we were in

number four but in 2020 three itself we

jumped into the number one position and

we're going to hold that flag for this

year and even the years to come the

average price per unit registered now in

the land department has jumped to over 3

million as the average unit registered

price it used to be in the 900,000 the

1.1 and 1.2 so in a way it is scaring a

few people because they're thinking my

goodness prices have jumped no that's

because the ultra high net worth homes

which are being picked up faster and

faster today are making that average

balloon so it's it's really showing much

more than what it should be so we still

have a very very heavy transaction

volume happening in the affordable

category so I think what would be good

from now is if he could see two averages

averages given in they fix a range uh

the government of Dubai should do this

and we say in those category homes this

is the average uh amount per unit that's

being sold and in the affordable so I

think we need a luxury category average

and we need an affordable category

average just so that people sitting in

some other remote corner of the world

looking at it doesn't freak out

wondering what's really happening here

that's true that's true I was just uh we

were preparing our annual report and in

that I was just going through the

numbers yesterday in the morning it was

the I think the overall sales is around

319 billion worth of transactions in

2023 which was a 41% increase from 2022

which was 222 billion around that number

and you were very correct when you said

the average is around 3 million because

there was a total of I think

119,000 yeah around 120,000 around

120,000 unit transactions so I mean

that's a 27% increase from last year

which is I mean it just shows you so

much activity in the market you know and

one another interesting point that we

noticed was there's a lot more Off plan

uh transactions that have happened last

year what are your thoughts about that

about all the inventory which is going

to come into the market okay a great

question I get asked this literally

every single day this is where the d33

agenda cannot be ignored you see one of

the problems with uh and I know for some

of the people who are going to be

looking at this they'll probably say

he's saying the same thing again yes

because we hear the same questions again

and again and again and if this is the

answer you're going to hear it again

otherwise ask me a different question

right in the market you see uh the

challenge the two things that you're

going to here today is what's going to

happen with all this inventory the crazy

launches that have been happening close

to 100,000 units will come out and we're

still not stopping the launches so that

is one one question which we get the

second one is duice a bubble it has to

be a bubble right now it's been

consistently going up for the last three

and a half years and it doesn't seem to

be slowing down the reason why people

cannot understand what is happening is

they separate real estate from the

economic agenda of Dubai you can never

do that the economic agenda of any city

or country influences directly the

growth of real estate so when you have a

d33 agenda where shik Muhammad's his

goal is to double the economy in 10

years we're sitting at 14.2 trillion

today and he's going to

26.8 trillion by 2033 with the ultimate

goal of 32 trillion in 2033 so when the

economy is doubling how is it possible

that you don't get commercial space

residential spaces communities Towers

hotels malls night clubs entertainment

how is it possible for an economy to

double when Real Estate is going to be

stagnant so you want real estate to slow

down for you to believe it's a good time

to buy then it is pulling south from the

agenda so you can never separate them

now let's look at what's happening we're

expecting about 100,000 units hand over

in total from last year year right up to

2028 so you're averaging in 5 years

around 20,000 units will come out Max

every year that's what we're looking at

you have an average population growth of

250,000 people every year for the next

10 years if they want to achieve the 2.5

2.5 million now the average family size

in Dubai surprise is 5.3 this is from

the cic the census and economic

information center 5.3 is the average

family size in Dubai so if I have

250,000 people coming in and I take an

average of five to a family I need

50,000 new homes every single year

already are short we are 30,000 plus

short every year for the next 5 years

this is taking into account an

absorption of all the 100,000 units

that's coming out now and that is the

reason why all the developers they don't

just wake up in the morning and say let

me launch they study the agenda they

work with the Dubai economic department

and they know what is the requirement

going forward that is why all the major

developers are continuing to launch

because come

2728 everything is finished so we will

need new handovers from 28 to 32 and all

these new launches that are happening

and which will continue to launch this

year and next year will become the

inventory 5 years from now because when

you have a shortage of 30 to 35,000

homes every year for the next 10 years

we are short yeah of course and that's

why we're seeing this massive uptick in

the prices in the ready property you

know I was talking to one of my broker

um you know brokers in the office he was

telling me it's like it's become a

challenge to find a good unit in most of

the good communities in Dubai to find a

good Villa or a townhouse today is a

challenge Dr Anand we're working with

clients where there's just not enough

inventory 100% which is why we know

there is a shortage today so why do do

you think every launch is selling out we

just had the launch from Dak recently

1.9 billion done in one morning yeah

it's gone every single launch every

single launch is selling out are we

saying that these investors don't

understand the market dynamics that's

going on in addition something else has

happened we've got now a new kind of

buyer in the market that emerged last

year the firsttime home buyers because

rents have started going up so high many

of them now are looking at taking homes

and since a lot of handovers are

happening now interest rates have

started to drop so they're now going out

in for the mortgages to be able to pick

up these homes and the 10-year Visa

carrot is also making them make the

decision faster so now we have a

different category of buyer in addition

to the previous people who are buying in

the market not to forget the 250,000

people every year who's coming in and

it's the reason these people are now

thinking of buying is because rental

migrations have started for the first

time now in Dubai we're seeing rental

migrations it's a clear sign of a

developing world-class City people who

are renting on the pal Jas are finding

it expensive so they're moving into the

Dubai marinas now the landlord in the

Dubai Marina when he saw this guy paying

the 300,000 on the palms and he's asking

for 190 is able to ask for

225 so he's increasing the rents in dub

Marina and ready to pay 225 rather than

300 or 350 so they migrate to the Dubai

Marina the Dubai Marina tenant who finds

it getting high comes to the jts and the

business base and those go to the jvc's

so this migration is happening but as a

result of the migration every other

community is hiking the prices because

new flow is coming in that's why across

the city we're seeing the rents go up

and this is causing a lot of those

people who are renting to now say enough

is enough let's buy so we're seeing

these people come up and of course the

10e Visa is making it really attractive

for these people now today I think

that's a very important point that you

touched upon about this internal

migration that's happening within the

city I think that is one of the reasons

why most of the developers are now

moving a bit more up Market in their

launches as well so if you look at all

the new launches that are happening in

Business Bay for example they're

extremely high-end projects as compared

to everything that was that everything

that exists in the city so we looking at

Mercedes-Benz coming up with their Tower

benatti coming up with Bugatti

residences we have the W residences the

masonis the Pagan you have all of these

branded high-end residential Towers same

a similar uh thing is going on in JBC so

you see all the new developers that are

coming in they really upped their game

in terms of the finishing the quality

that they're using everyone is I believe

moving a bit more up Market as well and

I think that's one of the trends that we

as Brokers have noticed in most of the

communities yes again that has been

fueled by this migration because

remember the maximum number of

millionaires on the planet are now

moving into the UA last year ended with

sing with Australia edging us out a

little bit but for the last two years we

definitely among the top two now these

people don't want a regular Community or

an apartment they want branded they want

Signature Homes they want that unique

lifestyle and that's why the developers

now are starting to offer that to them

and that's causing the buyers to look in

the other areas it's just going to

happen wait till the first casinos open

we're not talking just Russel Kima the

announcements have come out softly about

Dubai and you've got Dubai is now going

to take the Limelight back from rack for

sure it is going to happen just look at

your Instagrams you'll know what I'm

talking about for the last one year

everything was rack rack rack rack rack

Rack that's all was there in the last

two months what do you see on Instagram

about rack it's almost disappeared I

think the agents Focus have also shifted

because the entire sales pitch for rack

was that they would be the casino uh I

mean I still do believe that there is

some value there but Dubai is Dubai at

the end of the day see at the end of day

what did rack have you had water they

offering Waterfront Lifestyles we have

that in Dubai but you had the casino so

people have made over 70% in the last

year and a half absolutely killer

earnings but now what's happened is we

can give Waterfront Lifestyles even here

when we announced three potential ones

coming up the mgms the bagas and the

Aras now we've taken away that only one

thing they had where is the lifestyle in

irq where is the economic infrastructure

in irq where are where is the education

in global universities there where are

the worldclass hotels uh nightclubs the

beaches the parks the malls what is

there if you come into rack and you

leave the Waterfront and you go to the

next street you're almost into I don't

know Oblivion there is no way that City

at this point can match or comp compete

with Dubai the one thing that was

standing out was the casino which will

do well but they're only going to ever

have one there because rack as a city

cannot attract that volume of people but

Dubai as a city will attract the whole

world we cannot survive with a single

Casino yeah yeah for sure and so I think

this is just the start absolutely and

even the

location right in the Heart of the City

on kite Beach next to um you know the

burgal Arab I'm very excited about this

I think is going to bring so much more

attention to Dubai uh from a real estate

perspective as well yeah that is exactly

why you will see a new type of buyer

coming in from there as well so they

will go for the premium high-end owns

because the people going to those

casinos they splashing a million dollars

a day in casinos so what kind of homes

do you think they would be looking for

yeah yeah true I think it will really uh

assist in taking the market further more

upwards and I do believe Dubai as a City

will continue to grow and I think this

will end our first segment of our

podcast which is more geared towards

Dubai as a city the investors and in the

next segment we will discuss sales

because I know I'm sitting in front of

one of the best salesmen in the world so

I'm sure there's a lot of agents that

are watching this that will want to be

stick around for this second segment

which is going to be geared more towards

sales sales strategies and a concept

that Dr Anand gets very excited about is

negotiating a good deal so stay tuned

and we'll catch you in the next podcast