Dubai’s real estate market is expected to avoid the risk of oversupply over the next 4-5 years, fueled by strong demand from investors and tourists, according to Rizwan Sajan, founder and chairman of Danube Properties. Despite a surge in new developments, Sajan emphasizes that a robust influx of foreign investors and a growing number of residents making Dubai their second home will absorb the increasing supply.
Sajan also pointed out the significant impact of tourism on the market, particularly with the upcoming Wynn Al Marjan Island project in Ras Al Khaimah, slated to open in 2027. The multi-billion-dollar venture, in collaboration with Wynn Resorts, will be the region’s first integrated gaming resort, and is expected to double the number of tourists. “Many visitors will travel to Ras Al Khaimah for the gaming experience but will choose to stay in Dubai, creating further demand for properties, especially in the short-term rental sector,” he said.
Furthermore, Sajan highlighted that Dubai remains an affordable option for property investors compared to other global cities. “With property prices averaging $800 per square foot, Dubai is still underpriced when you compare it to cities like Hong Kong, New York, and London,” Sajan added. This affordability is driving high investor interest, ensuring that new projects are quickly sold out.
The UAE’s real estate boom continues, with developers aggressively launching new projects. According to Cavendish Maxwell’s Property Monitor, an average of one project per day was launched in the first quarter of 2024, adding around 10,000 units in March alone. Despite this rapid pace, Sajan dismisses fears of market saturation, pointing to the influx of new residents and tourists, which will sustain demand.
Danube Properties is at the forefront of Dubai’s real estate innovation, recently launching two high-profile projects: Bayz102 in Business Bay and Oasiz in Dubai Silicon Oasis. The 102-story Bayz102 is set to be the tallest in Danube’s portfolio, featuring a helipad for air taxis, a futuristic mode of transport expected to revolutionize mobility in the UAE. This development underscores Dubai’s embrace of cutting-edge technology, positioning Danube as a leader in luxury urban living.
While major developers like Danube thrive, Sajan acknowledges the challenges faced by smaller developers in securing reliable contractors and selling units quickly. However, he remains optimistic that the overall market will continue to grow, with Danube planning to expand its footprint by acquiring new plots in prime and affordable areas.
With no signs of slowing down, Dubai’s real estate market looks set to remain resilient in the face of rapid development, driven by a combination of tourist inflows, investment opportunities, and the city’s strategic position as a global hub for innovation and luxury living.
