- The Dubai real estate sector continues to exhibit robust performance, with property sales transactions surpassing previous years. In the first half of 2023, there were more than 60,000 transactions, marking a remarkable increase of over 40% compared to the same period last year. In the past week alone, approximately 3,200 transactions were recorded, amounting to a total value of AED 24.7 billion (USD 6.7 billion), according to the Dubai Land Department.
- Despite the vibrant real estate market, both sales and rental prices have experienced substantial growth this year. Apartment prices have surged by more than 20%, while villa prices have witnessed an astonishing nearly 50% increase since January 2023. Rental rates have also seen hikes of up to 50% in certain areas, leading residents to consider downsizing or exploring property ownership options. However, despite these significant price increases, demand remains strong.
Why it matters
Currently, average apartment prices are still 9.6% lower than their peak in 2014, while prices for larger homes have increased by 8.7%. According to ValuStart, a real estate evaluation and research company, apartment prices have increased by 10%, on average, from the start of the year until August. The most significant annual price increases were observed on Palm Jumeirah, where prices surged by 20%. Additionally, the return on apartments in Dubai is currently at 7.34%.
