Dubai’s soaring healthcare market and the demand for space

What is Dubai Healthcare City?

Dubai Healthcare City (DHCC) is a free zone in Dubai, aimed at providing high-quality medical services. It attracts hospitals, clinics, and healthcare providers from around the world, creating a dynamic healthcare ecosystem.

Expansion of Dubai Healthcare City

As the emirate’s health sector takes on the world, medical companies are realising that finding the right commercial property requires on-the-ground expertise.

In the past few years, Dubai’s Healthcare City has emerged as a focal point for Dubai healthcare with many of the world’s largest hospitals and specialised centres investing in the emirate.  

This expansion has been given a boost by the government’s commitment to making Dubai the place to be for top-notch care, in line with Dubai Master Plan 2040 – whether you’re a resident or one of the rising numbers of ‘medical tourists.’

Growth in medical tourism

Dubai saw huge growth in medical tourism in 2022 with 674,000 travellers spending Dh992 million in the year, an increase of a whopping Dh262 million from 2021. This has meant Dubai has had to face the challenge of catering to an increasingly wide range of healthcare needs.  

The medical sector has responded by embracing cutting edge technologies and innovation, while continuing to develop state-of-the-art facilities like Dubai Healthcare City.

Demand for facilities in Dubai Medical City

With all this market activity, there’s been an overwhelming demand for suitable facilities, which Dubai is just about managing to meet.  

According to June stats from the Dubai Healthcare Authority (DHA), the emirate currently has:

• 52 hospitals
• 77 specialised clinics
• 58 one-day surgery centres
• 82 dental clinics
• 122 clinics
• 1,325 pharmacies
• 414 optics centres
• 160 nursing homes
• 57 alternative medicine centres 

These numbers keep growing.

In Q1 of 2023, Dubai licensed a total of 143 health facilities, bringing the total number of health facilities to 4,609 – an increase of 11.5% compared to Q1 last year.

This boom shows the confidence of global investors in the growth prospects and high standards of the emirate’s healthcare sector. 

Navigating the commercial real estate landscape

However, as with all international commercial real estate markets, Dubai has its intricacies and unique bureaucracy; that’s why healthcare companies looking to enter the market – or expand on their existing offering – are turning to seasoned Property Consultants to navigate the complexities of finding optimal facilities.  

These experts have a deep understanding of local regulations, zoning laws, and market trends, ensuring healthcare businesses acquire strategically located spaces that match their operational needs.

The importance of the right real estate partner

Finding the right real estate company as a partner is essential.

“While healthcare organisations have a fantastic opportunity to thrive in Dubai’s buzzing medical market, there’s a lot of inside knowledge needed when it comes to acquiring facilities,” explained Robin Jose, Head of Commercial, haus & haus.

“Our commercial experts have a deep understanding of local regulations, zoning laws, and market trends, ensuring healthcare clients acquire strategically located spaces that match their operational needs. We work with these companies very much as a partner to ensure the whole process is not only smooth but optimal.”

Frequently asked questions about Dubai's healthcare market

How can I invest in Dubai Healthcare City?

Investing in DHCC involves acquiring or leasing commercial property tailored for healthcare services. Investors may set up healthcare facilities like hospitals or specialised clinics, benefiting from advantages such as 100% foreign ownership and no corporate taxes. If you’re considering property investments in DHCC, partnering with a knowledgeable local real estate consultant is essential to navigating the process smoothly. Learn more about commercial leasing here.

What are the benefits of investing in Dubai Healthcare City?

The primary benefits include tax exemptions, full ownership rights for foreign investors, and access to Dubai’s burgeoning medical tourism market. Additionally, the DHCC provides world-class infrastructure and a streamlined regulatory environment to facilitate business operations, making it an ideal place for healthcare innovation and investment

What types of healthcare services are in demand in Dubai?

There is a growing demand for specialised services such as oncology, orthopaedics, fertility treatments, and cosmetic surgery due to the influx of medical tourists. Preventive care, chronic disease management, and wellness services are also seeing significant growth as Dubai’s population increases.

Is healthcare a growing industry in Dubai?

Yes, the healthcare industry in Dubai is expanding rapidly. The number of health tourists is rising steadily, and the government continues to invest heavily in the sector. In 2022 alone, Dubai attracted over 674,000 medical tourists, reflecting the city's reputation as a global healthcare destination. Furthermore, new healthcare facilities continue to open, meeting the rising demand from both residents and visitors.