Proptech Expert Asserts Dubai Real Estate Market's Massive Potential
According to Alex Galtsev, the founder of Realiste, a leading AI-based proptech firm, Dubai's property market is currently experiencing its most prosperous phase ever, setting it apart from previous peaks in 2008 and 2014. Galtsev predicts that property prices in Dubai are unlikely to decline in the near future, emphasizing the vast potential and prospects that exist for both Dubai and the UAE as a whole. He attributes Dubai's success to its unique position between the West and Asia, attracting a diverse range of commerce and talent.
Galtsev highlights the presence of a sophisticated infrastructure and legal framework in Dubai, including features like Escrow accounts, as well as extensive financing from multiple countries, resulting in a highly diversified construction sector. He identifies significant opportunities in the market, noting that real estate in Dubai is still undervalued.
Comparing Dubai's property market to major cities like New York and London, Galtsev reveals that property prices in Dubai are approximately 2.5 to three times lower than those in New York, and about half the price of London's most expensive areas. Furthermore, he emphasizes that the quality of real estate in Dubai surpasses that of these cities, making it a highly attractive option for investors.
Realiste's AI platform identifies Downtown, JVC, Sobha Hartland, and Creek Harbour as the best-selling areas in Dubai, with upcoming developments expected to join the top five districts soon. Galtsev emphasizes the role of AI in enhancing transparency within the real estate market, attracting more investors and clients. Increased transparency instills confidence in purchasers, enabling them to make informed decisions and benefit from rental income or market growth.
Galtsev also highlights the recent rise in branded residences, which he believes increases property value by 25 to 40 percent while simultaneously boosting tourism and attracting investor interest.
Predicting rapid growth for the next three years, Galtsev anticipates that 2023 will be the year of highest transaction volume and property value growth. Although the growth rate may eventually decrease, he believes that the current period represents an optimal opportunity to enter the market, with lower risks compared to the time when the market was impacted by the Covid-19 pandemic.
Galtsev argues that the Dubai market will not follow the same boom-and-bust cycles of the past due to its ongoing digitalization and increasing transparency. He emphasizes that people recognize and appreciate the value, quality, safety, cleanliness, and tourism potential offered by Dubai, the UAE, and their cities. Galtsev believes that Dubai's prospects far outweigh those of any other city in the world.
News Source: Khaleej Times