By Marie O’Neill
Real estate is obviously an important consideration for relocating assignees and the companies who seek to attract the right calibre of talent. Any new hire will need to find the right home in order to feel comfortable and enjoy a smoother onboarding process. This means that companies need to be aware of market trends, what the costs involved may be (especially if they are trying to match or exceed an assignee’s quality of life) and what elements they may need to factor into their offer. At EER we make sure to share up to date market knowledge with our clients so that they can make the best decision for their business and their incoming employees.
Global Contention
Whilst we operate across the Middle East, I am most often asked about the Dubai real estate market, especially in terms of global mobility demand. This is a one of the most popular locations for expats and it is important to get a sense of what to expect, especially as we have seen apartment rents rise by 16% and villa rents by 22% since 2022. But Dubai still stands out amongst other global cities and, despite its price increases, is very competitive for incoming tenants. Rizwan Sajan, Chairman of the Danube Group recently commented, “Dubai remains a robust destination for global real estate investment due to various factors such as world-class infrastructure and growth outlook. Despite experiencing significant growth in the last two years, the real estate market in Dubai is relatively one-third of the sky-rocketing prices in London, Singapore, Hong Kong, and to some extent, Mumbai.”
A Comprehensive Landscape
One of the other unique attributes of the Dubai real estate market is its diversity. There really is something for everybody. From affordable communities to city centre apartments, family-sized villas to record-breaking luxury properties, there are endless options to suit every budget and taste. Whether an assignee wants to be in a serviced penthouse close by to the office, a villa near good schools or a waterfront mansion, they will be able to find the right fit in Dubai. This diversified environment also looks set to continue as new developments and projects are launched with increasing regularity. Many of these soon-to-be released complexes offer unique residential options for prospective assignees including smart communal living spaces to automated technology and luxury branded residences that create a curated lifestyle experience where every need is taken care of.
Managing Expectations
In the field of relocation and global mobility, one of our key responsibilities is to provide a seamless and supportive process for our assignees. A huge part of this is accurately managing their expectations when moving to a new place. In terms of Dubai real estate, it is a little easier to manage expectations than in other locations as, more often than not, the assignee will experience a higher standard of living than they are used to. Even with smaller budgets, renting in Dubai often results in larger spaces, excellent amenities and beautiful surroundings. That said, there is still much that we can, and should, relay to assignees so they are sufficiently equipped to start their life in Dubai. At EER we have put together comprehensive welcome booklets for each location that we operate in, which include information about renting and living in Dubai and what to expect in terms of infrastructure, payment terms, fees, culture and cost of living indexes. Our Relocation Consultants are also on hand to provide clarity on public transport, opening bank accounts and individual communities to help assignees make appropriate choices for renting or buying a home.
The Future of Dubai Real Estate
One of the lasting influences of the pandemic is that we should be cautious when predicting the future, but there are some elements that are likely to give us a sense of where the Dubai real estate market is headed in the next few years. Since, as a destination, the city and the nation of the UAE, continues to grow in popularity thanks to its unique offering and appealing qualities, the Dubai real estate market will keep expanding with new and more adventurous options. “The latest data from Zoom Property Insights forecasts that Dubai property prices are expected to increase up to 20 per cent increase on average and the luxury segment will continue to dominate with 13.5 per cent year-on-year growth in 2023.” Although rents and purchase prices are somewhat higher at the moment, as stock increases, the rates should level off and the government is committed to the implementation of its safeguards to prevent negative market scenarios. That said, the value for money in Dubai real estate is still one of the best in the world, with expat tenants pleasantly surprised about the level of quality they can get for their budget.
If you would like to talk to one of our expert consultants about Dubai relocation or the state of Dubai real estate market for potential assignees, please reach out on +971 (0)4 421 1819 or info@eerme.com today.
