Dubai Developers Score Red-Hot Profits From Global Homebuyers

Dubai's real estate market has witnessed a surge in demand from global homebuyers, driving record-breaking sales and profits for local developers. Emaar Properties, one of the largest real estate developers in Dubai, reported a net profit of Dh18.9 billion ($5.1 billion) in 2024, an increase of 25% compared to 2023. The company's revenue also increased by 33% to Dh35.5 billion ($9.6 billion) in 2024, while property sales surged to Dh70 billion ($19 billion), a 72% increase over 2023 sales of Dh40.3 billion ($11 billion).

The strong performance of Emaar Properties can be attributed to the increasing demand from global homebuyers, particularly from India, Russia, and the UK. Indians were the leading foreign property buyers in Dubai in the first half of 2022, followed by the residents of the UK, Italy, Russia, and France. However, the scenario changed, and Russians overtook Indians to become the top buyers in Dubai. British investors have also been investing more in Dubai due to high inflation and political uncertainty in the European country in the past year.

The demand from global homebuyers has not only driven record-breaking sales and profits for developers but has also led to significant price increases in the Dubai property market. The average prices for apartments and villas in Dubai increased by 9% and 12.7%, respectively, in the 12 months to November 2022. The average asking rent grew by 27.3% in the same period. Apartments for sale in Palm Jumeirah showed a strong price increase of 10%, while the apartment prices in Damac Hills and Mohammed bin Rashid City grew by 7% and 6%, respectively, in the fourth quarter of 2022.

The secondary property market in Dubai also generated capital gains of Dh59.7 billion in 2024, representing 32% of Dubai's all-time high total re-sale value of Dh188.1 billion last year. The highest amount of capital gain, Dh6.48 billion, was achieved on Palm Jumeirah. Prominent residential areas like Dubai Marina, Dubai Hills Estate, Downtown Dubai, and Business Bay also featured in the top ten for annual capital gain.

In conclusion, the surge in demand from global homebuyers, particularly from India, Russia, and the UK, has driven record-breaking sales and profits for Dubai's real estate developers. The increasing demand has also led to significant price increases in the Dubai property market, with the average prices for apartments and villas rising by 9% and 12.7%, respectively, in the 12 months to November 2022. The secondary property market in Dubai also generated substantial capital gains in 2024, with Palm Jumeirah and other prominent residential areas leading the way. As the global interest in Dubai's property market continues to grow, developers are expected to maintain their strong performance and continue to benefit from the increasing demand from global homebuyers.