The Dubai property market smashed through numerous records in 2023, cementing its status as one of the world’s most robust and attractive residential investment destinations.
According to the recently released Dubai Real Estate Market Report for FY2023 by Betterhomes, residential sales transactions reached an all-time high of 120,742 for the year – a massive 38 percent increase from 2022. Off-plan sales accounted for over half of all transactions.
“2023 marks a new set of records for the Dubai real estate market, with both the volume and value of sales transactions hitting new highs. In September 2023, average prices surpassed the previous peak set in September 2014, and this upward trajectory persisted through the final quarter despite a dip in off-plan transactions,” Richard Wained, the chief executive officer of Betterhomes said.
Property prices reflected the surging demand, climbing by an estimated 18 percent on average across the emirate. Some areas like Dubai Creek Harbour and Palm Jumeirah saw price increases of over 30 percent, while average prices across Dubai now exceed pre-crash peaks seen in 2014.
Despite the price rises, buyer interest continued unabated. Leads handled by major brokerage Betterhomes jumped 91 percent year-on-year as both investors and end-users were drawn to Dubai’s dynamic market. Demand was fueled by the UAE attracting over 100,000 new residents in 2023 alone.
Indians and British were the most active foreign buyers, though other nationalities from Egypt, Lebanon, Pakistan and Turkey significantly boosted their investments in Dubai’s safe-haven assets. The luxury end also flourished, with transactions over AED15 million more than doubling from 2022 levels.
Rising rents accompanied the supply-demand imbalance, with average listing prices on Betterhomes up 24percent across the board. Tight market conditions pushed overall occupancy rates to an unprecedented high of 93-97 percent.
Meanwhile, real estate analysts note that much needed new supply will only start coming online in late 2025 and beyond, suggesting Dubai’s property boom has further room to run over the coming years.
The emirate’s enduring appeal as a global business and lifestyle hub continues to draw massive interest from residents and investors worldwide.
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