What is the Future of Property Prices in Dubai?
The supply of land is constant, but the demand for properties fluctuates. Across the world, the real estate sector holds eminence as the majority of the population dreams of owning a home, and when the property is in the Dubai real estate market, the investors put in extra effort.
The Russia-Ukraine war surged demand for the Dubai real estate market, and the Russians were among the top 5 buyers of Dubai real estate property. Since then, the real estate market in
Dubai has appreciated and is still going strong, with an affirmation of price increase in 2024 and beyond.
Top Searched Areas in Dubai
The areas in Dubai that rank top in the search are Palm Jumeirah, Business Bay, Dubai Marina, Dubai Hills Estate, Dubai Hills Estate, Downtown Dubai, Mohammed Bin Rashid City, and Jumeirah Village Circle. These Dubai property prices are high in these areas.
Dubai Property Market Insight
The Dubai property prices for Q-3, 2023 account for 27138 apartments sold at AED 53.5B, a 51.2% increase compared to the previous year.
Around 5873 villas were sold, recording a 1.3% sales increase amounting to AED 29.1B, and 1000 commercial properties at AED 1.7B, marking a 17.5% increase compared to the prior year’s sales.
The sale of plots marks the maximum increase of 196.4% at AED 24.9B, with around 2697 plots sold.
The total sales value of the properties, off-plan and ready-to-move, in the Dubai Real Estate Market stands at AED 109.2B for Q3 2023, registering a 57.2% increase compared to the third quarter of 2022.
The total property sale transactions stand at 36708, off-plan counts at 22006, and ready-to-move properties at 14702. (Source)
Dubai Real Estate Market – Residential Sales Price Index
Dubai real estate’s price index in October 2023 was AED 1,438,846 for apartments at 1.686 and villas and townhouses at 1.559, with an index price of AED 2,615,245.
The total Dubai real estate market’s sales price index for October 2023 recorded an index of 1.544 at AED 1,438,846.
In November 2023, apartments were indexed at 1.482 with an index price of AED 1,268,623, and townhouses and villas at 1.343 with an index price of AED 2,189,579.
The aggregate sales price index of Dubai Properties for November 2023 was 1.387 at AED 1,334,010.
Dubai Market Sales Price Index 2022
The sales price index of apartments in Dubai market for December indexed 1.495 at AED 1,276,388 for apartments, villas, and townhouses at 1.340 with an index price of AED 2,204,459. The total Dubai sales price index was 1.396 at AED 1,339,112.
The Dubai property market’s Sales Price Index for November 2022 of apartments indexed at 1.482 with a price of AED 1,268,623, and villas and townhouses priced at AED 2,189,579, indexing 1.343. The overall Dubai Sales Price Index was 1.387 at AED 1,334,010.
The Dubai property market’s price index for apartments in October 2022 was 1.459 at AED 1,256,067, and villas and townhouses at 1.355 with an index price of AED 2,190,569.
The overall Dubai sales price index in October 2022 was 1.371 at AED 1,327,832.
Dubai Market Sales Price Index 2021
The sales price index of apartments in Dubai market for October 2021 was at 1.16 with an index price of AED 974,621, and villas and townhouses at 1.13 with an index price of AED 1,962,448. The overall Dubai Sales Price Index of October 2021 recorded an index of 1.132 at AED 1,086,969.
The Dubai property market in November 2021 for apartments was indexed at 1.182 at AED 1,000,253, and villas and townhouses at 1.167 with an index price of AED 1,990,496.
The total Dubai real estate market’s sales price in November 2021 indexed at 1.153 recording AED 1,115,937.
The sales price index of apartments in Dubai market for December 2021 was AED 1,026,759 at 1.207, and villas and townhouses at 1.193 with an index price of AED 2,003,452. The aggregate Dubai Sales Price Index of December 2021 recorded an index of 1.179 at AED 1,141,666.
Future of Property Prices in Dubai
According to the real estate news for Dubai, volume-wise, a 15-20% growth is expected, denying the possibility of a massive upsurge in property prices. The average property price in Dubai is forecast to be stable, confirms the founder of Property Finder, Michael Lahyani.
The transaction volumes remain stable over the next 3-4 months, but volatility in Dubai property prices shall persist location-wise, affirms Ari Kesisoglu, the president of Property Finder.
Investing in the real estate market in Dubai in 2024 would be the wisest decision for aspiring property buyers.
Leasing and rental costs influencing the Dubai property prices
With the increase in the delivery of ready to move properties by the developers in Dubai in January 2024, the Dubai leasing deals recorded a four-fold jump, pushing up the demand for the Dubai real estate market.
The transaction volumes will remain stable over the next 3–4 months, but volatility in Dubai property prices will persist location-wise, affirms Ari Kesisoglu, the president of Property Finder.
Investing in the real estate market in Dubai in 2024 would be the wisest decision for aspiring property buyers.
Leasing and rental costs influence Dubai property prices.
With the increase in the delivery of ready-to-move properties by the developers in Dubai in January 2024, the Dubai leasing deals recorded a four-fold jump, pushing up the demand for properties in the real estate market in Dubai. As per the experts, the 400% increase in Dubai leasing deals isn’t surprising, as it is due to the jump in property demand relating to mid-2022 to 2023. The property prices also whooped up by 14–15% on average during that period.
Investors can now rent out their off-plan property investment which they booked during 2020–2022, and can expect a 7-8% annual increase in rental rates. A 1-BR property in the Palm Jumeirah area has been rented out at 23.5% which is higher than the previous year’s rental of $6000 per month, affirming direct influence of leasing on rental costs, which ultimately accelerates the property price, confirms the CEO of Colife, Ilnara Muzafyarova.
The Dubai Economic Agenda (D33)
Dubai is on a mission to achieve an increase of up to AED 650 billion in foreign direct investment, AED 25.6 trillion in foreign trade, AED 1 trillion in private sector investments, and generate AED 100 billion in annual contributions from digital transformation projects to boost the economy of Dubai.
This ten-year Dubai Economic Agenda was announced on January 4, 2023, by His Highness Sheikh Mohammed bin Rashid Al Maktoum, the Vice President and Prime Minister of UAE, and Ruler of Dubai. The D33 objectives also include connecting 400 cities with Dubai’s trade, thereby doubling Dubai’s foreign trade relations, which will boost economic links with Latin America, Africa, and Southeast Asia.
The D33 agenda aims for Dubai to list its name among the top four financial centers and five logistics hubs globally.
With Dubai’s sustainable economic growth mission and progress, the future of property prices in the real estate market in Dubai is bound to leap, promising a boom in the real estate market in 2024 and beyond.
Conclusion
It is clear that the Dubai property prices are expected to surge, though not massively, but there will be a considerable increase. The transformational projects under the Dubai Economic Agenda D33 include launching green and sustainable manufacturing, aspiring to make Dubai a major innovation hub with the launch of Sandbox and other development initiatives, and scoping property prices to rise in Dubai.
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