The latest data shows that Dubai's property prices have reached 1,271 dirhams per square foot, surpassing the previous historic peak in September 2014. With rising property prices, many homeowners and investors are opting to redesign and renovate their properties before selling or renting them at higher prices.

Paul Kelly, Operations Director at Allsopp & Allsopp, stated, "Investors and homeowners with properties in prime and high-demand areas are choosing to undergo extensive redesign and renovation, followed by selling and renting at premium prices." This trend indicates that homeowners are looking to capitalize on the opportunity presented by rising property prices to achieve higher returns in the current market.

One of the reasons for the continuous increase in Dubai property prices is the ongoing surge in demand for real estate. Dubai's status as an international business and tourism center attracts a significant number of foreign homebuyers and investors, resulting in an imbalance between supply and demand, driving the upward trend in property prices. According to the latest data, the gap between the listing price and the actual transfer price has reached 15%.

Currently, due to the record-breaking demand for Dubai real estate, sellers often apply a premium to the listing price. However, with developers accelerating the launch of new projects, it is expected that more available properties will enter the market. This additional supply may potentially temper the upward trend in property prices observed in recent years.

Furthermore, with the delivery of more new properties, it is anticipated that by the second half of 2024, there may be some relief in the rental market pressure, providing tenants with more options.

The high property prices have also led people to start migrating to new and upcoming areas with relatively lower prices. Prices in some popular central locations have exceeded the affordability of the average buyer, prompting homeowners to focus on properties with better value and more significant space.

Emerging Dubai suburbs and primary residential communities such as Jumeirah Village Circle (JVC), Dubai South, Townsquare, Reem, and Arjan have become their new choices. Compared to central and prime locations, the property prices in these areas remain relatively reasonable, attracting an increasing number of homebuyers.