Property Price in Dubai

A friend recently brought up the sudden surge in property prices in Dubai, expressing concerns about investing due to the rapid increase. It was a valid point, considering the influx of speculators aiming to capitalize on short-term gains. Indeed, the rise in property prices can be attributed to increased demand and reduced supply, which is a common factor behind price increases. However, it's important to scrutinize the market from a different perspective.

While manipulating property prices may be relatively easy, the rental market presents a different story. Rental rates have also witnessed an upturn, and unlike property prices, the rental market is not easily manipulated. Rental demand can only grow with an increase in population, which is typically accompanied by economic growth.

Another factor contributing to the rise in rental demand is the recent mandatory requirement set by RERA (Real Estate Regulatory Authority) for tenancy contracts to be registered through Ejari (For more information, visit www.ejari.ae). Additionally, individuals seeking visas for their families must provide an Ejari-registered tenancy contract. This policy change has curbed the previous practice of multiple couples sharing accommodations. Now, families must secure a registered tenancy contract before applying for visas.

While the Ejari policy has had a positive impact on rental prices, it is important to acknowledge the underlying growth in the country as well. The increase in rents signifies a promising trend. While one can argue that the government's Ejari policy has played a role, we cannot disregard the overall growth in the country.

It is undeniable that property prices in Dubai have experienced a significant surge. However, we must bear in mind that the property prices had plummeted to such an extent that it became more expensive to construct properties than to buy them. Companies would only invest in building properties if they could sell them at a profit. Therefore, witnessing a rapid increase in property prices should not be considered uncommon given the previous market conditions.