Real estate in Dubai is breaking records: prices have reached unprecedented heights
In November 2023, the Dubai real estate market reached a new historical high. Property Monitor research shows that prices jumped by 1.17%, reaching 1,271 dirhams per square foot (approximately $3,460 per square meter), surpassing the previous record in 2014.
This price increase is especially noticeable in the apartment segment, which is now ahead of villas and townhouses, due to high demand for housing. After the initial recovery, focused on more expensive facilities, now the price increase is noticeable in more affordable segments. This is due to the increase in Dubai's population, which grew by 100,000 people in 2023, while only 50,000 new properties were commissioned. As a result, demand far exceeds supply.
Real estate prices in Dubai, despite record levels, are still more affordable compared to major global cities such as Hong Kong, London, Paris and New York.
Property owners and investors in Dubai are responding to these changes by remodeling their properties and putting them on the market at increased prices. According to Paul Kelly, chief operating officer of Allsopp & Allsopp, this phenomenon is especially noticeable in prestigious and popular areas.
In the first 11 months of 2023, 122,657 real estate purchase and sale transactions were registered in Dubai, which is 40.3% more than in the same period of the previous year. The total number of transactions is expected to exceed 130,000 by the end of the year, surpassing initial forecasts.
Thus, the Dubai real estate market continues to show significant growth, supported by a constant influx of investment and population, despite global economic changes.
Source: Zawya
