According to CBRE's report, in December 2023, the average residential prices in Dubai surged by 20.1%, with apartments and villas witnessing average price hikes of 19.8% and 21.8% respectively. This growth underscores the ongoing vibrancy of Dubai's real estate market, attracting the attention of investors and buyers alike.
However, compared to property prices, the rate of rental growth has slightly decelerated. In 2023, the average rental prices in Dubai increased by 18.9%, slightly lower than the previous month's increase of 19.2%. This could be attributed to increased supply and restrictions imposed by property developers and landlords on rental increases.
Internet
Nevertheless, the total volume of real estate transactions in Dubai reached a new high. In 2023, a total of 118,993 real estate transactions were completed, marking a 29.6% increase from the previous year. Among these, off-plan transactions increased by 31.9%, while secondary market transactions rose by 26.3%. This data indicates the strong appeal of Dubai's real estate market to homebuyers and investors.
CBRE forecasts that Dubai will deliver 68,880 real estate units in 2024. This projection suggests that despite more supply entering the market, demand for real estate remains robust.
In the high-end real estate market, transactions for properties exceeding AED 5 million saw a slight decline, decreasing by 15.5% year-on-year. Transactions for homes priced over AED 10 million dropped by 3.1%, with a total of 1,003 transactions. Despite this slight decrease, Dubai's luxury real estate market remains highly active, attracting investments from affluent buyers.
Looking ahead, the momentum of price growth for apartments and villas in Dubai will remain relatively strong. While the rate of rental growth may slow down, the leasing market is expected to continue its upward trend. Dubai's real estate market will continue to be a popular choice for global investors, with its sustainable development and market vibrancy further enhancing its attractiveness.
