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- Dubai Real Estate Market Results for 2023 | AX Capital
The year 2022 was extremely successful for the Dubai real estate market. Several new programs were adopted and implemented, which stimulated the influx of new investors. The number of purchase and sale transactions has increased, and rental has also gained great popularity. The year 2023 has significantly improved the result of last year, which we will discuss in more detail below.
Content:
- Volume of Real Estate Sales Dubai
- The Most Popular Areas of Dubai in 2023
- Real Estate Rental Indicators in Dubai
- Dubai Real Estate Market Forecast for 2024
- Investing in Dubai Real Estate
Volume of Real Estate Sales in Dubai
After the end of the pandemic and the lifting of restrictions, the Dubai real estate market has returned to its usual growth rate. Real estate is still in demand among foreign investors, which has increased the number of sales. The total number of concluded purchase and sale transactions amounted to 133,000. The increase compared to 2022 was 38%. The total value of all transactions reached $112 billion, which is 50% more than last year. Of these, $64 billion were for ready-made real estate and $68 billion for real estate objects under construction.
The most interest was shown and the largest investments in the city's real estate were made by citizens of the following countries:
- India
- China
- Great Britain
- The CIS countries
Also, investors and citizens began to be interested in more expensive real estate. Purchases of residential real estate with a price of up to two million AED accounted for approximately 53% of all sales. Sales from two to five million accounted for 33%, and purchases over five million accounted for 14%. In 2022, sales of properties worth more than five million AED accounted for only 5% of the total number of transactions.
The Most Popular Areas of Dubai in 2023
Most of the purchase and sale transactions belong to investors who choose real estate in popular areas of the city, business centers, or tourist areas.
In addition, family areas were very popular: Dubai South, MBR City, and Jebel Ali.
Each of the above areas has a convenient location near the main city attractions, shopping areas and access to the public transport system. These factors are of high priority for expats and tourists.
Real Estate Rental Indicators in Dubai
In total, more than 600 thousand lease agreements were concluded in 2023. 90% of which were concluded for a year, under the terms of a short-term lease. The highest average rental price was set in the five most popular areas of Dubai:
Dubai plans to continue its economic growth, while further improving the living conditions for the local population. For the next 20 years, the Government of the Emirate will continue to improve the region, including in the field of rights and opportunities for foreigners. This approach contributes to an increase in prices for the purchase and rental of real estate. It also stimulates the influx of new residents who want to live and work in one of the most technologically advanced countries in the world. Thus, the demand for short-term and long-term rentals for over a year will only grow.
Dubai Real Estate Market Forecast for 2024
Real estate in Dubai continues to be very popular. Experts agree that depositors will keep on investing in local real estate. Foreign investors are attracted by stability, regular moderate price increases, and the environmental orientation of new projects. It is also worth noting the stable level of the local market, which will last for at least another five years.
The number of residents from other countries in Dubai will continue to grow as well as the need for housing. According to the Dubai's Development plan, it is scheduled to further increase the number of residents by 2040. The number of expats will double from three million to six million. Based on the research by the ValueStat consulting group, real estate prices are expected to increase by about 5% in 2024.
Investing in Dubai Real Estate
Every year, new projects are announced in Dubai, which are of interest to residents and investors. Most of the existing projects are also being successfully commissioned. Dubai real estate continues to attract foreign specialists and investors who want to invest in a reliable asset. If you are interested in investing in Dubai real estate, contact AX CAPITAL specialists. Our agents will help you choose the most suitable property as well as assist in the acquisition and maintenance of the purchased property.