Property firms are now using their big profits to keep building to attract even more buyers
Dubai’s Real Estate Boom Continues as Developers See Record Profits
The property market in Dubai is still experiencing a surge, with developers in the city witnessing unprecedented growth in sales and revenue. Dubai, a key hub within the United Arab Emirates, ranked as the third best-performing city for prime real estate in 2024, recording a remarkable 16.9% price increase, as per the Knight Frank Cities Index. The soaring demand is largely fueled by expatriates relocating to the city and international investors looking to capitalize on the thriving market.
Emaar Development, the construction subsidiary behind the world’s tallest tower, posted an all-time high profit of 7.6 billion dirhams (S$2.8 billion) in 2024, marking a twofold increase from its 2022 earnings. Similarly, Binghatti Holding also witnessed a dramatic rise, more than doubling its profits from the previous year.
Meanwhile, in neighboring Abu Dhabi, Aldar Properties exceeded market expectations with its annual profits. The company recorded a staggering 62% jump in revenue, reaching 23 billion dirhams compared to the prior year.
Experts anticipate home prices will maintain their upward trajectory throughout the coming year. “The ongoing population expansion has been a key driver behind this property surge, and it is likely to persist into 2025, albeit potentially at a more moderate pace,” noted Mohammed Ali Yasin, CEO and founder of Oracle Financial Consultancy and Investments.
While Dubai’s property market has experienced downturns in the past, the current rally has remained resilient, supported by the government’s strategic pandemic response and investor-friendly visa regulations. The luxury segment, particularly waterfront villas on the city’s iconic palm-shaped islands, has attracted an influx of affluent buyers. Among them are high-net-worth individuals, including Russian investors safeguarding assets, cryptocurrency entrepreneurs, and financial professionals migrating from Asia.
