Despite the difficult economic and political situation in the world, the Dubai real estate market continues to develop dynamically. Moreover, this city has been a leader in the ranking of the best tourist destinations according to Tripadvisor Travelers’ Choice Awards for several years.
Next, we’ll talk about the cost of apartments located in Dubai, and also discuss the prospects for market development in 2024.
Current prices for real estate propertiesAccording to the International Monetary Fund, the United Arab Emirates ranks first in the ranking of countries with the most rapid growth in real estate prices. The greatest influence on these statistics was exerted by Dubai, an emirate that annually attracts a large number of foreign investors to its territory.
Dubai celebrated the New Year 2023 amid rising real estate prices. The increase in apartment prices began in the second quarter of 2023.
Last year, the number of lots put up for sale lagged significantly behind the number of investors wishing to become owners of luxury real estate. It was this fact that caused a sharp increase in the cost of villas and penthouses.
Over the previous year, Dubai property prices increased by an average of 19%. The following are the current prices for one-bedroom apartments located in top areas of the city:
- Dubai Marina: US$395,000
- Downtown Dubai: US$517,000;
- Jumeirah Village Circle: US$231,000.
In 2023, the number of real estate transactions increased. 133,134 transactions were completed in Dubai (this includes agreements concluded in relation to ready-made and off-plan real estate properties.
Dynamics of price growthThe cost of apartments and villas is determined not only based on the popularity and amenities of the area in which the property is located.
The price per square meter also depends on how much demand exceeds supply.
In 2023, Dubai hosted a fairly large international event - the World Expo 2023, which was visited by more than 25 million people. This event was one of the main reasons for the increase in property values.
Let's look at the dynamics of price growth for villas and apartments:
- in January 2023, a four-bedroom villa cost an average of $3.7 million; in December 2023, a comparable villa cost $4.5 million (growth rate: 21.6%);
- in January 2023, a two-bedroom apartment cost an average of $3.25 million, while a comparable apartment in December 2023 cost $3.8 million for a villa (growth rate: 16.9%).
The most intense price growth was recorded for premium and super premium real estate. In 2023, objects in these categories grew by 22.5% and 20.4%, respectively.
Immediate prospectsAccording to experts, 2024 should also show positive dynamics in the growth of real estate prices: this is confirmed by annual and quarterly analysis, which shows stable demand and high performance, especially in the apartment sector.
The price per square meter for the first half of 2024 may increase by 5-7%. This increase is primarily due to the interest of wealthy investors from Latin America, Mexico and Canada.
