With advancements in technology, shifting demographics and changing lifestyles, real estate investors globally are redefining their preferences. When it comes to buying, selling and investing in real estate, industry players need to understand these evolving market trends. Being one of the most dynamic property markets, Dubai has always been at the cusp of major market evolutions and developers are driven to closely observe these changes to stay ahead of the curve.
In recent years, Dubai's real estate landscape has been evolving dramatically, with new trends emerging including sustainable developments, online property transactions, and customised home features, among others. At Sobha Realty, one of the most significant shifts that we have witnessed in the past few years is the evolving nationality mix. For instance, until last year, Russian investors were a major contributor for Sobha Realty’s projects, but currently there has also been a higher influx of Emirati, Indian and Chinese investors.
As technology, market conditions and consumer preferences continue to evolve, the real estate industry will continue to transform to meet the customer requirements. Some of the significant trends Dubai’s property market has been witnessing are:
Globally, luxury properties are in higher demand than ever, a trend that is also apparent in Dubai's real estate market. Being one of the world's top marketplaces for luxury real estate, Dubai's real estate developers have recently expanded their luxury projects in an effort to draw in more foreign investors. Dubai’s luxury property market has become one of the most sought-after investment destinations for high-net-worth individuals (HNWIs), owing to the city’s economic growth, strategic position, world-class infrastructure, and investor-friendly legislations. In this year 2023, out of the total homes sold directly by developers in Dubai, 70% of sales value is comprised of homes that are priced over AED 2 million. With a diverse choice of high-end homes such as villas, apartments, penthouses, and mansions, the country is attracting millionaires, and this trend is projected to continue in the years to come.
With increased global concern over climate change and other environmental issues, Dubai’s real estate market has been witnessing increased interest in sustainable and eco-friendly homes. Consumers are increasingly preferring properties that meet global sustainability standards. At present, when buyers are searching for a home, they are looking for certain features like solar panels, energy-efficient appliances and sustainable building materials, which determine the eco-consciousness of the developer and their commitment towards achieving sustainability goals. The current market indicates that developers who demonstrate their relentless commitment towards sustainability are likely to witness an increased demand in the market.
Similarly, technology-enabled homes are also gaining significant momentum in the market. For the past few years, the real estate sector was lagging behind other industries in terms of integrating advanced technologies into their practices but has been changing at a significant pace. As the technologies continue to improve and consumer demand evolves, industry players are pushed to explore further possibilities of different solutions. In 2023, we expect to witness a widespread integration of technologies like virtual reality (VR) and augmented reality (AR), especially to help buyers make wise decisions remotely while purchasing their dream homes.
In addition, with the intervention of technologies like artificial intelligence (AI), smart features are expected to be the next benchmark for home buyers. AI-integrated devices are expected to be an inevitable part of every home soon. AI emulates human intellect in smart devices, requiring less direction from human beings. Smart home devices integrated with AI can interact with us and learn our habits. It can result in a reduced need to manually set each task for smart homes. For instance, with AI integrated lighting system, lights can turn on or adjust when someone enters a room. With autonomous timers and smart motion detectors, these smart lighting devices not only ensure ease of living but also aid in energy conservation to a great extent.
Currently, the demand for personalisation is amping up across all industries, and the real estate sector is no exception. Home buyers are now looking for places that reflect their unique lifestyle and preferences or those that they can customise to fit their needs. The current market trends indicate that real estate developers who succeed in providing personalised services and offerings are likely to see a strong demand for their properties.
Attributing to these investor trends, Dubai’s real estate sector is shaping up to be a dynamic and exciting one globally. Evolving consumer demands which currently focus more on eco-friendly, technologically advanced and customised properties are pushing developers to explore newer ways to meet the evolving requirements. Being at the forefront of Dubai’s evolving real estate market, Sobha Realty has been closely monitoring and analysing these trends in the marketplace and implementing various strategies to adapt to them.