Property prices in the UAE: Property prices rise for 11th consecutive quarter
The Dubai real estate market has continued its upward trend for the 11th consecutive quarter as of Q3 2023. Analysts predict substantial price growth in the next five years, emphasizing that prices in Dubai remain significantly more affordable compared to other major global cities. According to them, a global real estate consultancy, $1 million can purchase 105 square meters of prime property in Dubai, while the same amount only fetches 17 square meters in Monaco, 33 square meters in New York, and 34 square meters in both Singapore and London. This price comparison highlights that prime real estate in Dubai is more than 50% cheaper than in many other major cities, making it an attractive destination for high-net-worth individuals, investors, and end-users.
“Currently, Dubai’s real estate remains very affordable compared to other global cities, and I anticipate significant price growth at the top end of the market over the next five years and beyond”
The data reveals that there are 77,864 homes (excluding branded residences) under construction in Dubai, scheduled for delivery by the end of 2028. The annual average is approximately 13,000 homes over the next six years, a figure notably below historical completion rates. They highlighted that the city remains undersupplied, especially in light of population growth projections and the scarcity of new homes in prime neighborhoods and the higher price brackets.
As Dubai approaches the fourth year of sustained price increases in this third market cycle, its prime real estate markets continue to be highly sought-after. Between the first and third quarters of 2023, around 87,000 homes valued at $10 million or more were resold, totaling a transaction value of Dh224.6 billion. In comparison, 2022 saw 92,000 transactions with a cumulative value of Dh222.7 billion. However, monthly activity dipped to 7,500 transactions in September, down from the consistent pace of over 10,000 homes sold per month between January and August.
11th Consecutive Quarterly Rise:
They reported that residential property values in Dubai continued their upward trend in the third quarter of 2023, marking the 11th consecutive quarter of price increases.
During Q3 2023, average residential property prices increased by 5%, bringing the cumulative rise to 30% since Q1 2020. However, prices are still 7% below the peak observed in 2014. On an annual basis, there was a notable increase of 19%.
“These latest price growth highlights the unwavering confidence in Dubai’s luxury real estate market. The city’s remarkable trajectory, world-class lifestyle, and strategic position as a global city have solidified Dubai’s status as a magnet for the world’s elite.”
Apartment prices in Dubai saw a 5.1% increase to over Dh1,300 per square foot, indicating a robust 26% surge since Q1 2020. Despite a significant 19% increase in the past year, apartment prices remain 10% below the peak recorded in 2014.
