Dubai real estate market results in 2023

Dubai real estate market results in 2023 - Makebiz

Dubai’s real estate market continues to show steady growth, setting new records in 2023. This positive momentum is expected to continue into 2024, opening up new opportunities for investors and buyers.

According to official statistics, the total value of transactions in the residential sector amounted to around UAE Dh412 billion (US$112.7 billion) in 2023. This is a 56% increase from 2022. The number of transactions also increased by a third to 133,000. This growth is due to a number of factors, including:

  • Emerging trends in the industry, such as the popularization of off-plan properties.
  • Diversification of real estate segments with a wide range of options.
  • Increased business opportunities attracting investors and entrepreneurs.
  • High demand from buyers looking for homes or investment opportunities.

A record was recorded for transactions for off-plan properties, which amounted to nearly 69,000. 70% of transactions were in 10 prestigious areas of Dubai such as Al Barsha South, Wadi Al Safa, Downtown Dubai, Dubai Marina and Jumeirah Village Circle.

The luxury housing sector continues to grow and Dubai is among the most sought-after locations for luxury real estate investment globally. Sales of apartments priced over UAE Dh36.5 million (US$10 million) increased by 92.4%, with a total transaction value of UAE Dh28 billion (US$7.6 billion).

Prices in the surveyed market also increased, rising by around 14% compared to pre-pandemic levels. A square meter in Dubai in November 2023 cost almost 14,000 UAE dirhams (US$3,800), surpassing the record level of 2014.

Trends were noticed in the sales sector:

  • up to 21% increase in the value of homes in upscale neighborhoods;
  • budget options are most popular in International City, Dubai Residence Complex and Dubailand;
  • medium-budget apartments in The Springs, Jumeirah Village Circle, Al Furjan, Dubai Silicon Oasis increased in price by 3%;
  • high yield (11%) was recorded in DIP, Liwan and Discovery Gardens.

Experts attribute this price growth to the key factors: the influx of foreign citizens and high buyer demand from wealthy investors. The growing popularity of the Emirates as a place to live, work and invest, as well as a stable economy are the key drivers of this sector.

Let us highlight the trends in the rental sector:

  • budget options in the sought-after neighborhoods of Al Nahda and Deira rose in price by up to 17%, as did mid-budget options in VC and Bur Dubai;
  • Dubai Marina, Business Bay and Dubai Hills Estate are particularly popular in the premium segment, with the price of apartments rising by up to 21% and villas by up to 38%;
  • demand in the market still exceeds supply.

The positive trend in housing sales and rentals is expected to continue into 2024. This is supported by long-term investments in infrastructure, sustained demand for housing and a favorable economic environment.

Investors and buyers can expect continued price growth as Dubai strives to become a leading global business hub. The luxury real estate segment is expected to further strengthen and expand as affluent buyers continue to seek luxury homes in a safe and prosperous environment.

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