The current bull run in the emirate’s real estate market is distinct from the two previous peaks in 2008 and 2014. Property values in Dubai are experiencing their best phase ever. A leading expert predicts that costs won’t decrease anytime soon in the near future.
“There is still enormous potential and prospects for both Dubai and the UAE as a whole. In particular, Dubai has found itself in a unique situation between the West and Asia, attracting all streams of commerce and talent,” Alex Galtsev, founder of Realiste, an AI-based proptech firm, told Khaleej Times in an interview.
“Now in Dubai there is a sophisticated infrastructure and legal framework (such as Escrow accounts, and so on). The entire construction is currently being financed mostly with cash from many countries, diversifying extensively. There are great opportunities, and real estate is still highly undervalued,” he said.
Comparing real estate in Dubai to other major cities like New York and London, Galtsev said that prices in the Big Apple are currently about 2.5 to 3 times higher than in Dubai. In London, the most expensive areas cost around USD 15,000 per square metre, roughly double the price in downtown Dubai.
“However, the properties commanding such prices in London are not of a luxury format and are mostly old. In Dubai, the city centre near the Burj Khalifa, Downtown, is priced at USD 7,500 per square meter, which is half the price and the quality of real estate is twice as good. So, the difference in terms of quality and price is approximately fourfold,” he added.
According to Realiste’s AI platform, Downtown and JVC are the best-selling districts in Dubai, and Sobha Hartland and Creek Harbour will soon join them and already rank in the top five districts.
AI makes real estate deals more transparent, Galtsev said.
“The more transparent the real estate market is, the more it attracts investors and clients. When you see that everything is transparent, you are not deceived, and you can confidently make purchases and earn from rentals or market growth. Of course, the more transparent the market is, the larger its volume becomes,” he concluded.