How FDI is Powering the UAE’s Booming Property Market Words by Blagoje Antić, Founder & Chairman of DHG Holding

(MENAFN- Atteline) The UAE’s journey to becoming a global magnet for foreign direct investment (FDI) is no accident. It's a story of strategic vision, bold policies, and a dynamic Real estate market that has captivated investors worldwide. In 2023, the UAE drew in an astonishing 45.4% of all FDI flowing into Arab states, reaching AED248.3 billion1. This was no small feat, but in 2024, we saw the UAE’s growth story take on a new dimension. It wasn't just FDI propelling the real estate market, as commercial real estate demand started playing an equally crucial role.

Commercial Real Estate Surge Fuels Residential Demand

At DHG Properties, we’ve witnessed firsthand the surge in demand across industrial, retail, and office sectors—up by 45% in the first quarter of 2024 alone. This boom in commercial activity didn’t just stay confined to offices and malls. It rippled across the residential market as well, drawing in investors and residents alike. Dubai, in particular, saw a wave of new arrivals, with 25,700 people migrating to the city in Q1 2024—more than the total number of newcomers in all of 2023. As professionals from countries like Germany, India, and the UK relocate for work, the demand for housing continues to climb.2

FDI and Legal Reforms are Building a Strong Foundation for Real Estate Growth

FDI remains the backbone of the UAE’s property market success. Key amendments to the Commercial Companies Law—allowing full foreign ownership of companies—have provided international investors with the security they need to dive into the UAE’s booming real estate sector. Global investors are drawn not just by the country’s competitive tax environment, but also by the high living standards. Greenfield FDI projects are flourishing, with the UAE ranking second globally for new project announcements in 2023, right behind the United States.

But the appeal of the UAE goes beyond just numbers and opportunities. It’s a place where people want to live and work. A recent survey revealed that 82% of professionals in the UAE and Saudi Arabia prefer staying in the GCC over relocating to Europe or the US. High living standards and an attractive lifestyle were key reasons for this preference, with 46% and 35% of respondents highlighting these factors, respectively.3

International Quality Meets Dubai Luxury

This influx of talent is driving demand for residential properties, and at DHG, we’re responding to that demand. Many expatriates are seeking modern, high-quality homes close to commercial hubs, and Dubai has become synonymous with both innovation and luxury. Our new projects aim to blend Swiss quality with Dubai luxury, filling a gap in the market by offering exceptional homes at accessible prices. By staying attuned to the evolving needs of residents, we ensure that our developments meet the highest standards while remaining attractive to a broad range of investors.

UAE’s Strategic Initiatives Set the Stage for Long-Term Growth

As the UAE continues to cement its place on the global stage, the government’s long-term vision is already paying off. Ambitious initiatives like the ‘We the UAE 2031’ vision and the D33 Economic Agenda are setting the country up for future success, with goals to double GDP and boost foreign trade to AED4 trillion by 2031. Alongside policies like the Golden Visa program and the Quality of Life Strategy 2033, these initiatives are reinforcing the UAE’s position as a leader in global investment.

For developers, the challenge isn’t just meeting today’s market demands—it’s anticipating the needs of tomorrow’s expanding population. The combination of FDI, strong commercial demand, and a growing expatriate workforce presents a unique opportunity for sustained, long-term real estate growth.

As international investors continue to recognise the UAE’s potential, we’re ready to embrace the growth in both commercial and residential sectors. The UAE’s ability to attract and maintain FDI underscores the strength of its economy and its role as a leading destination for real estate innovation and investment.

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