Stefan Burch, Director of Real Estate at Deloitte Middle East, stated that investors remain confident in Dubai's real estate market, thanks to its safe environment, captivating lifestyle, and the latest introduction of the golden visa regulations. With population growth, increasing tourist numbers, and sustained economic growth, Dubai will continue to offer lucrative opportunities for investors seeking stable returns.
In Dubai, the real estate market is primarily driven by cash buyers, with demand for affordable housing and townhouses driving the thriving rental market. The report indicates a staggering 29% increase in Dubai's real estate market transactions in 2023 compared to the previous year. Resale properties accounted for 41% of the total sales value, indicating strong demand for properties developed by non-major developers.
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Notably, Jumeirah Palm Island apartment prices have shown significant growth this year, while prices in the southern and MBR City areas have also seen noticeable increases. However, in the villa market, prices on Jumeirah Palm Island, Dubai Sports City, and Dubai Parks have declined. Meanwhile, rental rates across Dubai have shown a rapid upward trend, especially in areas such as Dubai International Financial Center, Jumeirah, and Dubai Parks, with increases ranging from 36-39%, far exceeding pre-pandemic levels. In comparison, rental increases in International City have been more moderate at 8%.
Furthermore, office leasing, hotel, and retail spending in Dubai have shown positive trends. Office rents have increased by 17% compared to 2022, surpassing pre-pandemic levels by 20%. The hotel industry has also experienced a rebound, with average occupancy rates reaching 77%, rising to 88% in February. By 2027, retail total spending is expected to grow by 4.5% annually, benefiting from Dubai's large resident and tourist population.
In conclusion, Dubai's real estate market attracts global investors with its unique charm and vitality. Whether residential, villas, or commercial properties, it demonstrates significant investment potential and market prospects. As Dubai continues to grow and develop, this market will continue to provide rich opportunities for investors and is worth close attention.
