Dubai’s reputation as one of the world’s most promising and resilient real estate markets continues to hold strong among investors globally. The city’s residential sales market is currently experiencing significant growth.
In addition to the fact that Dubai has always been attractive due to a combination of strategic initiatives, infrastructure development, and investor-friendly policies, since 2020 following the confinement, interest in Dubai real estate has increased fivefold. Indeed, Dubai was one of the few cities in the world to reopen relatively quickly after a wave of new COVID. In addition, Dubai launched long-term residency visas for investors in 2019, which has encouraged the inflow of foreign capital. In fact, many international investors looking for stable, tax-efficient markets saw Dubai real estate as a promised land after the pandemic
A quick summary of 2023
According to CBRE (UAE Real Estate Market Review Q4 2023 Report), 2023 closed with a remarkable average price increase of 20.1%. In particular, prices for apartments rose by 18,9%, while the prices for villas rose by 21.8%. Always considering 2023, the price per square foot for an apartment was AED 1,399 (EUR 349), while for villas it reached AED 1,686 (EUR 421).
Strong start to 2024 maintained over the year
To focus on 2024, JLL (The UAE Real Estate Market Overview Q1 2024 Report) reports that Dubai’s residential market has maintained its robust momentum, registering a 21% annual increase in both sales prices and rentals thus confirming the city’s strong upward trajectory.
It is also worth mentioning that just in Q1 2024, around 10,000 new residential units have been delivered, and another 25,000 are expected to be finished by the year’s end. The majority of these properties are located in prime and popular areas like Business Bay, able to offer a luxurious lifestyle attracting, among others, many high-net-worth individuals.
Yet, an interesting trend for the future, of which investors should be aware of, is the scheduled shifting in locations by developers. As a result of the increase in both land and construction costs, many developers are now focusing their projects in secondary locations. This current phenomenon offers a unique opportunity for investors to enter the market at a significantly lower cost, in districts that will likely poise to experience remarkable growth while the city continues its unrestful expansion.
In particular, apartments saw an 18.9% price increase, while villas rose by an impressive 21.8%. As of December 2023, the average price per square foot for an apartment stood at AED 1,399, while villas reached AED 1,686. This surge in property prices reflects a booming demand that investors are keen to capitalize on.
Cash buyers and resilience
One of the most interesting peculiarities of the Dubai market is its dominance of cash buyers, shielding the city and its economics from potential harmful fluctuations even during the most uncertain times.
To sum up, why is investing in Dubai worth it?
Dubai is very well-known for having a good leadership strongly committed to long-term economic growth while focusing on innovation and luxury. In this aspect, the city’s real estate market has become a beacon of development and quality, thanks to experienced developers dedicated in maintaining the highest standards of quality in delivering their exceptional projects.
As Dubai continues to evolve, so do the opportunities to invest. From luxurious apartments in world-famous locations to new neighbourhoods, passing through gated communities offering privacy and exclusivity, Dubai’s real estate market offers solutions for all kinds of investors; whether focused on short-to-mid-term gains or long-term capital appreciation.
In conclusion, investors considering entering new markets should have Dubai at the top of their lists, as thanks to its proven track records of growth and development, Dubai is effectively not only dreaming about the future, but working to make the future a present reality. At Azraq Group, we provide bespoke guidance and expert advice at every stage of your real estate journey in the Middle East real estate market.