Finance News Weekly: How would you describe the current state of the real estate market in Dubai, and what are the most dynamic segments (residential, commercial, luxury, etc.) ?
Want Sfiren : Dubai’s real estate market is today one of the most promising in the world. Since the Covid-19 crisis, we have seen a dramatic increase in demand, particularly following the conflict between Russia and Ukraine. Dubai is seen as a resilient city, capable of bouncing back quickly after crises. However, some believe the market has reached its peak. In our opinion, Dubai has only just begun. The emirate plans to double its population and the number of visitors by 2030, which will lead to an unprecedented rise in prices per square meter. As young Moroccan entrepreneurs, Yassine Abibi, founder and CEO, and I even, we have a unique vision of the market. For over five years, we have been supporting international investors and have seen growing demand across all segments. However, Dubai is primarily associated with luxury. Any buyer, whether investor or resident, seeks to acquire a part of this exceptional universe. This is why we believe luxury properties are the most sought after and remain the fastest growing segment of the market.
FNH: What are the most sought-after neighborhoods in Dubai, and why do they attract so many buyers or renters?
T. S. : In 2024, one of the most attractive neighborhoods is Jumeirah Village Circle (JVC). This sector has seen investments by its owners triple, even quadruple, since the post-Covid period. JVC displays one of the best resultsrental properties in the city, with returns on investment (ROI) ranging from 11 to 14% and an annual property appreciation of 6 to 10%. Business Bay and Downtown Dubai remain essential. Downtown, with the famous Burj Khalifa and the Dubai Mall, represents the height of luxury, while Business Bay, often considered the “child” of Downtown, offers more affordable prices while guaranteeing attractive profitability. Luxury Living Homes Real Estate has also supported numerous investors in these areas, facilitating the acquisition of strategic properties. Dubai Marina and Jumeirah Beach Residence (JBR) are popular destinations for tourists and residents looking for beach life, with beaches, shopping centers and seaside restaurants. Finally, Palm Jumeirah, this island emblematic artificial, remains an essential address. The villas, initially marketed for around 1.5 million euros in 2005, now sell for up to 9 million euros.
FNH: Dubai is renowned for its grandiose projects such as artificial islands or emblematic skyscrapers. Do you think these projects have a lasting influence on the local real estate market?
T. S. : Without a doubt. The long-term development strategy put in place by Dubai’s leaders ensures continued growth. Every time we believe that Dubai has reached its limits, new major projects emerge, prolonging the effect of fascination. With more than five artificial islands and more than 300 skyscrapers, Dubai remains in constant transformation. We have often observed how these flagship projects attract the interest of the investors we support. Additionally, we recently helped several investors acquire more than 20 properties on Marjan Island, where the upcoming casino is attracting considerable attention. Some of these investors have already made exits with significant profits, testifying to the lasting impact of these projects.
FNH: How do Dubai’s real estate regulations (such as 100% ownership for foreigners) contribute to the attractiveness of the market?
T. S. : Around 70% of properties in Dubai are “free-hold”, that is to say accessible to full ownership for foreigners. This flexibility attracts a large number of European, British, Indian and American investors, who are looking not only to invest, but also to settle in a secure and prosperous environment. Luxury Living Homes strives to guide investors through these strategic acquisitions, ensuring a complete understanding of the benefits of 100% ownership.
FNH: What is the process of purchasing property in Dubai for international clients, and what are the different market segments and price ranges available?
T. S. : Buying property in Dubai for an international client is a surprisingly simple process, comparable to purchasing an everyday product. The basic procedure only requires a copy of the buyer’s passport and a bank transfer. This process is designed to be fast, transparent and secure, helping to make Dubai one of the most attractive real estate destinations in the world. The Dubai real estate market is divided into two main segments: Ready properties and off-plan properties. Ready-made properties are goods purchased directly from existing owners or on the secondary market. They allow immediate acquisition, which is ideal for customers wishing to move in or rent quickly. Prices for these properties vary greatly depending on location. For example, in areas like Jumeirah Village Circle (JVC), apartments are available from 125,000 euros, while luxury villas on Palm Jumeirah can fetch up to 10 million euros. Off-plan properties, on the other hand, are properties sold directly by developers before construction is even completed. By investing in off-plan projects, clients often buy a “piece of sand”, with delivery expected within 1 to 3 years. This model is particularly attractive because it offers installment payment plans at 0% interest, allowing progressive installments to be paid throughout construction. Some developers even offer payment options after delivery, spreading the total cost over 5 years.
At Luxury Living Homes Real Estate, we help our investors identify projects that guarantee strong appreciation as soon as 40% of the property is paid for. This allows customers to invest a reduced initial amount and benefit from a substantial valuation of the property even before delivery. Many investors thus make significant profits by reselling their properties before the full completion of the project. For investors looking to generate long-term income, we also offer short-term rental services through Holiday home platforms. Once the property is delivered, rental income can cover the remaining installments. This model is all the more attractive as Dubai levies no tax on rental income or the resale of properties, thus maximizing returns on investment. Another key element of security in the Dubai real estate market is the use of Escrow accounts. Every payment made for an off-plan project is deposited into an account jointly managed by the developer and Dubai Land Department (DLD), ensuring that funds are protected until the project is completed. This provides additional assurance to investors, reducing risk and building confidence in the market.
FNH: What aspects of the Dubai real estate model could be transposed to Morocco to boost the local market?
T. S. : Morocco has natural assets that few countries in the Mena region can rival. However, the real estate market could become more attractive by adopting certain elements of the Dubai model. We believe that the digitalization of transactions, transparency of property titles, and tax incentives tailored to foreign investors could transform the market. As players in both regions, we see how the presence of international brands and renowned developers can attract global attention.
FNH: In your opinion, what could Moroccan developers and investors learn from Dubai’s approach to better structure and develop the Moroccan real estate market?
T. S. : Moroccan developers could take inspiration from the way Dubai designs its real estate projects as life experiences. Creating communities, rethinking cities and integrating innovative technologies could increase investor interest. Luxury Living Homes is already working with Moroccan clients interested in these innovative ideas.
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