An IMGW News Report
Dubai’s property developers are reaping significant rewards as global demand for real estate continues to surge. The city, part of the United Arab Emirates, has seen its property market heat up, with developers reporting record profits and sky-high sales figures. According to Knight Frank’s Cities Index, Dubai ranked third globally for prime real estate performance in 2024, with prices rising 16.9%. This surge has been fuelled by an influx of expatriates and international buyers eager to capitalise on the city’s booming market.
Emaar Properties PJSC, the construction giant behind the Burj Khalifa, reported a record profit of 7.6 billion dirhams ($2 billion) for 2024, more than double its 2022 earnings. Meanwhile, Binghatti Holding Ltd. also posted a dramatic rise in profits. In neighbouring Abu Dhabi, Aldar Properties PJSC exceeded analysts’ expectations with a 62% increase in revenue, reaching 23 billion dirhams.
The rally in Dubai’s property market shows little sign of abating. Experts predict continued price rises in 2025, driven by robust population growth. Mohammed Ali Yasin, CEO of Oracle Financial Consultancy, noted that this growth has been the key driver of the market and is likely to persist, albeit at a slower pace.
The market’s luxury segment, particularly on the Palm Jumeirah and other exclusive islands, has attracted wealthy investors, including Russians seeking to protect their assets, crypto millionaires, and bankers leaving Asia. Although the market has faced downturns in the past, the current boom has been prolonged, partly due to the government’s pandemic response and liberal visa policies.
Smaller developers, once struggling, have begun to thrive. Deyaar Development PJSC, for example, reported a 7.5% profit increase in 2024. Property stocks have also soared, with analysts recommending a ‘buy’ on Emaar’s shares, which have risen over 70% in the past year.
Developers are now ploughing profits back into new projects, anticipating continued demand from a growing global population.
