BrazilAnother boom years for Dubai's resident property market
The residential property market in Dubai experienced yet another year of remarkable growth in 2023, with sales prices increasing by 18% and rental rates soaring by 26% over the previous year.
A new report by Deloitte shows that Dubai’s residential market is hot, and is not expected to run out of steam in the coming period. In sync with higher selling and rental prices, the number of residential real estate transaction increased by 29% in 2023, with Business Bay, Downtown and Jumeirah Village Circle recording the highest number of transactions.
From a property perspective, villa price growth outpaced prices for apartments while rent growth has moved in tandem, said the report’s authors.
Notably, properties in Palm Jumeirah, Dubai South and MBR City recorded the highest growth in sale prices, while rent increases were highest in DIFC, Jumeirah and Dubailand Residence.
Stefan Burch, Partner and Head of Real Estate at Deloitte, said that Dubai continues to serve as a safe haven for investors, amidst geopolitical and economic headwinds in other global investment markets.
“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.”
An international comparison from Savills previously found that in the prime residential segment, Dubai is now among the hottest worldwide, ahead of major centres such as Sydney, Singapore, San Francisco, and London.
Deloitte’s report meanwhile warns that the stock of affordable property is under pressure in Dubai, with both sales and rental prices now at their peak.
According to data sourced from the Dubai 2040 Urban Master Plan, Dubai currently has around 750,000 residential units. To meet population growth and inbound migration, that number is planned to rise to 1 million before the end of this decade. Deals in the market are facilitated by around 8,000 active real estate brokers.
