Dubai’s real estate sector transaction volumes and prices rose substantially last year, according to a new report by Deloitte.
The report said that residential sales prices increased 18 percent in 2023 compared to the previous year, with rents rising 26 percent.
Villas saw more rapid growth in both prices and rents over apartments.
Dubai real estate transactions highest in Business Bay, Downtown Dubai, and Jumeirah Village Circle
“Investor confidence in Dubai’s real estate remains steadfast, driven by safety, desirable lifestyle offerings, and now, enhanced by the recently golden visa regulations. With a burgeoning population, a surge in tourist arrivals, and robust economic growth, Dubai will continue to provide opportunities for investors seeking stability and prosperity,” said Stefan Burch, Real Estate lead at Deloitte Middle East.
Real estate activity in the emirate was dominated by cash buyers, with demand for affordable houses and townhouses driving rental activity.
According to the latest data in the Deloitte report, transaction volumes in Dubai’s property market increased a substantial 29 percent in 2023 compared to the previous year.
Secondary or pre-owned properties made up 41 percent of total sales, showing strong demand for homes not developed by major companies.
The top locations for transactions were Business Bay, Downtown Dubai, and Jumeirah Village Circle. However, when analysing price growth, apartments in Palm Jumeirah recorded the strongest year-over-year increase.
Meanwhile, Dubai South and MBR City witnessed noteworthy price gains. In contrast, villas in Palm Jumeirah and the communities of Dubai Sports City and Dubailand led the way in terms of price declines.
Rents also soared across various emirate neighbourhoods. The highest jumps between 36-39 percent were found in DIFC, Jumeirah, and Dubailand residential, easily surpassing pre-pandemic levels. International City stood out with the most modest rental increase of 8 percent.
Office rents, hospitality sector and retail spending in Dubai
Meanwhile, office rents jumped 17 percent when compared to 2022, crossing pre-pandemic levels by 20 percent.
The hospitality industry also saw a boost, as it exceeded pre-covid visitor numbers and occupancy rates averaging 77 percent, peaking 88 percent in February.
In addition, total retail spending is projected to expand 4.5 percent annually till 2027, the report said, adding that this would be driven by the high number of residents and tourists in the emirate by 2030.
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