Latest news with #NovviProperties
The National
24-05-2025
- Business
- The National
UAE Property: ‘My neighbour's smoking habit is affecting my health'
Mario Volpi is head of brokerage at Novvi Properties and has worked in the property sector for 40 years in London and Dubai May 24, 2025
The National
16-05-2025
- Business
- The National
UAE Property: ‘How can I challenge my building's grade with the DLD?'
Mario Volpi is head of brokerage at Novvi Properties and has worked in the property sector for 40 years in London and Dubai May 16, 2025
The National
10-05-2025
- Business
- The National
UAE Property: ‘Can my neighbours' kids shout and play in the building common area?'
Mario Volpi is head of brokerage at Novvi Properties and has worked in the property sector for 40 years in London and Dubai
Khaleej Times
27-03-2025
- Business
- Khaleej Times
How can we decode the relentless property boom in Dubai?
The UAE's real estate sector has continued its record-breaking trajectory this year, as the property boom shows no signs of slowing down. Dubai has been leading the charge as more people flock to the emirate to work and live. KT Luxe spoke to some of the country's leading property experts to get their views on what is fuelling the boom, how long they think it will last, and the latest buyer trends. Let's start by looking at what is causing this boom. In basic economics, when demand outstrips supply then prices will rise. Dubai is an attractive place to live with its tax-free status, business-friendly policies, good quality of life and a wide range of visas for entrepreneurs and start-ups. Last year we saw approximately 160,000 people move to Dubai and by the end of 2024 the population stood at 3.8 million. So demand is high. Property developers have been playing catch-up, trying to match this demand by building homes for new residents. And we can't forget property investors, particularly from the UK and India, who see Dubai as an attractive location for rental income and capital growth. Once you add in low interest mortgages and flexible financing, it's clear to see why we are in the midst of a property boom. More millionaires and high net worths are moving here, more branded residences are being built, and Dubai regularly ranks as a great place to live. Property cycle Property markets tend to move in cycles, and booms can't last forever. So where are we in this current cycle? 'We are definitely at the top, but what happens next will determine where we end up,' says Mario Volpi, head of brokerage at Novvi Properties. 'By this I mean, if we were to continue with the same population growth, we won't see a stabilisation much before 2027 but if the numbers actually grow more, this bull run could go on for much longer.' Richard Waind, CEO of Cencorp which owns Betterhomes, a full-service real estate brokerage, explains why a slowdown in prices might happen. 'The inflow of people to Dubai will remain strong in the coming years, but increased supply may have an impact on prices in the short term, especially in the apartments sector. But villa and townhouses may remain undersupplied, given market demand.' He points out that there are currently more than 1,700 projects under construction from over 200 developers. Gabriel Tamman, a luxury property specialist with Tribeca Real Estate, is more bullish about the longevity of the property boom. 'We are nowhere near the top. Unlike mature markets, Dubai is still in a high-growth phase. The UAE is a young country with the vision, resources, and policies to attract and retain talent and wealth,' he says. Regardless of where you think we are in the cycle, Raji Kaippallil, founder of financewithRaji, makes a good point. 'Those who view real estate as a long-term investment have little to worry about.' History repeating? When it comes to investing, a well-known disclaimer is that past performance is no guarantee of future performance. When it comes to property, can we learn from past booms and cycles? 'Each cycle is different but given what is mainly driving the demand at the moment, this gives this growth a more robust feel,' says Volpi. Waind agrees that this current property cycle is very different from others. 'Past markets in Dubai were far more speculative and unregulated. Today's market is underpinned by strong economic fundamentals and population growth, and is well regulated and well capitalised. 'Ever increasing homeownership is creating a far more sustainable and 'sticky' market, a more mature market, which will protect buyers from any future market corrections'. But while the outlook is healthy and optimistic, experts always have to be on their guard for a slowdown caused naturally or from unexpected events. 'Dubai's real estate market has experienced extreme growth over the past two years, raising concerns about potential overheating,' says Nataliya Khudykovska, a luxury real estate adviser. But she then quickly lists all the factors that suggest that the market still has room for further expansion. These include strong demand from global investors, the growing number of wealthy residents (millionaires and High Net Worths), and stricter market regulations. She pointed to current market dynamics to support her argument. 'Project launches are proving very successful and many sell out on the day of launch itself, so far demand is keeping up with the supply.' The mood is definitely upbeat, the fundamentals look good and no-one even mentioned the words 'bubble' or 'bust'. To put current price levels in context, Waind explains that 'Prices have increased roughly 20 per cent a year since 2020, but these prices have recovered from an extremely low level.' 'Today prices offer great value in comparison to other world markets, and according to the UBS Property Bubble index Dubai continues to offer 'fair value'. Khudykovska also highlights that prices haven't yet reached historical peaks. 'Despite their rapid growth, prices in some segments remain lower than during the 2014 boom.' Buyer habits So buyer demand is clearly strong, but what are they looking for in a property? Khudykovska observes that preferences in Dubai have shifted significantly over the past few years, reflecting changes in lifestyle, work habits and global investment trends. 'These include increased demand for larger spaces. Buyers are prioritising villas, townhouses, and spacious apartments over compact units. Communities like Dubai Hills Estate, District One, and Tilal Al Ghaf are seeing record demand for larger homes with private gardens and pools.' Dubai has always had a reputation for luxury properties, and this is being cemented with the rise of high-end branded residences, exclusive penthouses and waterfront estates being built, to cater to the inflow of millionaires and HNWs. 'Dubai is becoming a top choice for wealth preservation,' says Khudykovska, founder of NKD real estate. 'The luxury segment faces a significant lack of available properties, pushing prices even higher. While the situation in the mainstream housing market is slightly better, demand continues to rise.' Flip and fix One of the challenges with the property market has always been speculative buyers, who flip properties looking for a quick profit. We asked experts if this is still a trend among today's buyers. They told us that some investors continue to flip off-plan properties before handover, taking advantage of Dubai's fast-rising prices and strong demand. High-end projects in Palm Jumeirah, Dubai Marina, and branded residences often sell out quickly, allowing early buyers to resell at a premium before completion. But developers are increasingly introducing anti-flipping clauses, such as mandatory holding periods to prevent excessive speculation. Tamman adds that while off-plan flipping is still popular, fix-and-flip strategies are thriving. Hot spots And when it comes to new developments, there are plenty to choose from, catering to all types of buyers. Property experts listed a number of exciting projects in the pipeline, including Palm Jebel Ali, Downtown and Emaar Beachfront which all look highly promising. Dubai is still developing its desert areas towards Dubai South (near Expo City and the new Al Maktoum International Airport), where new residential projects and business centres are emerging. While new island living, such as Dubai Islands (formerly Deira Islands), will feature new beaches, hotels, and luxury villas. Looking further ahead, The World Islands will be a collection of private islands for the ultra wealthy.
