Revealed: UAE real estate sector seeing massive upsurge in women investments with $25bn recorded in 2023

Emirati, South Asian and Far East Asian investors are leading the table of women buyers in the Emirates’ real estate market with a whopping 53.9 percent jump from 2022

The UAE real estate sector is seeing an upsurge in investments by women, who collectively estimated to have poured in close to $25 billion (AED90.5 billion) in 2023, a whopping 53.9 percent jump from the previous year, a latest market analysis revealed.

Improved financial literacy, enhanced access to capital and women empowerment initiatives by the government are cited as the major drivers of the surging female financial clout in the UAE’s property sector.

Emirati, South Asian and Far East Asian investors are leading the table of women buyers in the UAE property market, the analysis by Hedge & Sachs, a Dubai-headquartered leading real estate fund management firm, showed.

The fund’s study also projected women investors to contribute about 22 percent of the total real estate investments in Dubai in the first quarter of 2024, amounting to at least $3.27 billion (AED12 billion).

The plateau in women investments in the first quarter of this year is due to the slower market growth, especially seen in February and anticipated to continue in March as well on account of Ramadan. The market, however, is expected to bounce back post-Ramadan and Eid holidays.

“The incredible rise of female investors [in the UAE real estate market] speaks louder than statistical trends, and is a narrative of empowerment, financial acumen and a redefined real estate landscape,” Abhishek Jha, Chief Administrative Officer and Board Member, Hedge & Sachs, told Arabian Business.

“The future holds the promise of a more inclusive and dynamic real estate sector, where the diversity of investors becomes a driving force for sustainable growth,” Jha said.

Millennials drive women’s real estate investment

While the exact age group breakdown for women investing in 2023 and early 2024 is not available, the Hedge & Sachs research indicated that millennials are the dominant group among women investing in the Dubai and UAE real estate market.

“This could be due to the fact that there is more financial literacy and exposure to investment and wealth management for women of this age category,” the study said.

The significant improvement on the women economic empowerment front due to the rise of female employment, improved financial literacy and enhanced access to capital are cited as the major factors underpinning the rise in the number of women investors in Dubai – as also in the UAE – property markets.

The rising trend of female participation in the real estate sector is also due to the changing social attitudes, reflected in the increased acceptance of female financial independence and decision-making.

“The stable economy, robust regulations, high rental yields, and tax benefits in the UAE real estate market have become magnets for investors from all walks of life, including women investors,” the Hedge & Sachs study said.

The UAE government’s move to foster an inclusive business environment with supportive policies for female entrepreneurs and investors are also pivotal for this rising diversity in ownership in the country’s property sector, it said.

Sustained trend of rise in number of women investors

The Hedge & Sachs analysis also revealed a sustained trend of surge in female investors in UAE’s real estate sector

“The number of women investors has been registering a significant and sustained spike in recent years, with the number posting a significant jump from 26,698 in 2022 to 38,059 in 2023 alone, which is a 42.5 percent increase,” it said.

Jha said the Dubai  and also the UAE  real estate landscape is currently witnessing a transformative wave, with female investors at its forefront.

“They [female investors] are not just coming together in numbers, but also in the substantial growth of the market,” the Hedge & Sachs senior executive said.

“These numbers also underpin the success the Dubai real estate market is having, not only in terms of numbers but it also shows that there is a change in social attitudes and is a testament to the economic impact and financial clout wielded by female investors,” Jha said.