Dubai, world-famous for its futuristic skyscrapers and luxury lifestyle coupled with a favorable business environment.

has witnessed growth in population figures over the recent past. It was reported on December 17, 2023, by the Dubai Statistics Center that it had a total population of 3.65 million, of which 100,240 accounted for the previous year’s increments. This exceptional growth has seen the emirate attract foreign workers, investors, and rich individuals who saw opportunities in such an emirate.

Factors Responsible for Increasing Population

Many major factors led to the present surge in the population of Dubai:
Resident Visas
Dubai implemented the following residency visas: the Golden Visa, Retirement Visa, Freelance Visa, and the Green Visa, that allows all those eligible immigrants to remain within the country up to 10 years. The regulations attracted a high number of foreign professionals, retired individuals, and investors around the world.

Amendment in Rules

In addition, the UAE has made progressive changes in laws to enhance economic, commercial, and social opportunities. Such changes included relaxing rules regarding foreign ownership and labor, thereby making Dubai a destination for all people from various backgrounds, not necessarily adhering to Sharia law.

Expo 2020 and COP28

Mega events like Expo 2020 and COP28 have made Dubai an international name, creating a boost for global investments and increasing its visibility as an emerging infrastructure. While the COVID-19 pandemic did affect the sector, Expo 2020 was able to create a long-lasting impact by injecting AED 154.9 billion into the economy of the UAE.

Infrastructure Market Stress

The rapid influx of residents and investors has created an unexpected demand for housing, leading to an undersupply in certain property sectors. The villa market, waterfront locations, and mature communities have been particularly affected, with many areas reaching full occupancy. As rent prices soar, tenants are turning into buyers, further stressing affordable housing in regions like Discovery Gardens, Jumeirah Village, and Business Bay.

Major Players in Dubai’s Real Estate Market
Several real estate companies have emerged as crucial factors in the face of increasing growth in Dubai. Here are a few notable players in the market:

Emaar Properties

Emaar Properties, founded in 1997 by Mohamed Alabbar, is a key player in Dubai’s real estate sector. The company has made significant strides in luxury developments, with notable projects such as Dubai Marina, EMAAR Beachfront, and Dubai Creek Harbour. Emaar’s expansion into international markets has positioned it as one of the most profitable developers, with a net profit of AED 8.2 billion in the first nine months of 2023 alone.

Nakheel

Nakheel, renowned for creating the iconic Palm Jumeirah, has been instrumental in shaping Dubai’s waterfront landscape. The company faced significant challenges during the 2007-2010 debt crisis but was saved by a $10 billion investment from Abu Dhabi. Today, Nakheel continues to develop luxury properties like the Palm Jebel Ali and The World Islands, contributing to Dubai’s vibrant real estate market.

Dubai Holding Real Estate (Meraas/Dubai Properties)

An example is Dubai Holding Real Estate, comprising Meraas and Dubai Properties among its subsidiaries, and it also boasts contributions to projects that integrate innovation with luxury. From the blending of old and new in City Walk to the coastal elegance of Port de La Mer, these developments come with a unique mix of residential, commercial, and recreational spaces within them.

Sobha Group

Sobha Group has established a glorious reputation in the real estate market of Dubai through quality commitment. Properties like Crest Grande and Sobha One Park Avenue by Sobha focus on luxury and sustainable living, fusing intelligent design with lush green spaces.

Nshama

Nshama is a relatively new player in the real estate sector of Dubai. It was founded in 2014. It focuses on the development of smart, sustainable communities like Town Square, offering modern residences with green spaces and a range of community amenities.

DAMAC Properties

DAMAC Properties is one of the leading developers in the UAE. Some of its prominent projects include Akoya Oxygen and DAMAC Hills. Known for luxury residential properties, DAMAC also collaborates with global brands such as Paramount Hotels & Resorts to offer high-end living experiences in Dubai.

Al Futtaim Group Real Estate

These include Al Futtaim Group Real Estate, representing the international conglomerate, that manages the developments like Dubai Festival City and Cairo Festival City, among others. Their contemporary residential projects are those projects such as Al Badia Terraces that are suited for young families and investors.

Azizi Developments

Azizi Developments was founded in 2007 with projects like Azizi Venice and Riviera targeting only the most modern luxury residential projects. Its portfolio is growing at an astonishing rate, as it aims to create more series of luxury hotels across the coming years in Dubai.

Ellington Properties

Design-led company Ellington Properties focuses on delivering bespoke, high-quality residences. It is best seen in its projects such as Palm Jumeirah Beachfront Villas and Wilton Park Residences that epitomize elegance and functionality.

Danube Properties

Danube Properties is well-known for quality homes offered at an affordable price. Developments from this company include Wavez by Danube and Miraclez, designed for all sorts of buyers and are truly worth every penny in value but never sacrifice the luxury feel.

Challenges Ahead

While Dubai’s real estate market is booming, it also has its downsides. Presently, due to the quick and light growth of population, there is an undersupply of properties, especially within the sought-after locations, and thus on-going demand for affordable housing due to increasing costs of rent and more tenants converting into buyers. Developers will need to act fast so that demand is met to keep Dubai at the forefront in the entire world in terms of a real estate hub.

Conclusion

The population boom in Dubai, mainly due to the new residency opportunities, progressive legislation, and big international events, has catalyzed unprecedented growth in the real estate sector. While demand for housing continues to rise, companies like Emaar, Nakheel, DAMAC, and others are responding to the increased needs of residents and investors. However, to sustain Dubai as one of the world’s leading cities for luxury living and investment, a balance between supply and demand must be achieved.