Why Dubai is the Hottest Real Estate Market for Investors in 2024

If you are looking for a lucrative investment opportunity in the real estate sector, you might want to consider Dubai. The city has been witnessing a remarkable recovery and growth in its property market, reaching new heights in terms of prices, sales, and launches. Here are some of the reasons why Dubai is the hottest real estate market for investors in 2023.


Dubai Property Prices are Surging

According to the Property Monitor Dynamic Price Index (DPI), the average Dubai property price in November 2023 was AED 1,271 per square foot, which is 3% higher than the previous peak of September 2014. This means that Dubai properties have regained their value and are now offering attractive returns for investors.

Since hitting the bottom in October 2020, Dubai property prices have increased by a whopping 44.9% on average, with different types of residential properties experiencing different growth rates. Ready single-family homes, such as villas and townhouses, have seen the highest demand and the steepest price increase, with some properties selling for 5-10% more than the previous sale. Apartments, on the other hand, have lagged behind in their recovery until Q3 2022, but have since picked up the pace and achieved stronger gains.


Dubai Property Sales are Breaking Records

The volume of sales transactions in Dubai has also been impressive, reaching a total of 12,223 sales in November 2023, which is the highest ever for that month. Out of these, 89.1% were residential transactions, comprising of apartments, townhouses, and villas. The remaining 10.9% were commercial transactions, including land sales, hotel apartments, and office spaces.

Year-to-date, there have been 122,657 sales transactions recorded in Dubai, which is a 40.3% increase over the same period last year. This shows that the demand for Dubai properties is high and that buyers are confident in the market. By the end of the year, it is expected that the number of sales will surpass 130,000, exceeding the initial projections of 120,000 to 125,000.


Dubai Off-Plan Projects are Booming

Another indicator of the health and vitality of the Dubai property market is the number and value of off-plan projects launched in the city. Off-plan projects are properties that are sold before they are completed, offering buyers the opportunity to secure their units at lower prices and benefit from the potential appreciation in value.

In November 2023, there were 8,500 off-plan units added to the market for sale, with an estimated gross sales value of AED 19.5 billion. Apartments accounted for 90.9% of these units, while townhouses and villas made up 6.1% and 3.0% respectively. Year-to-date, there have been over 86,000 off-plan units launched in Dubai, with a total sales value of AED 252 billion. This is significantly higher than the 2022 year-end figures, which were around 53,000 units and AED 157 billion in value.

Moreover, off-plan transactions have dominated the market share since Q4 2021, currently standing at 60.3%. This means that more buyers are opting for off-plan properties over completed ones, indicating a strong preference for new and upcoming developments. However, this does not mean that completed properties are losing their appeal, as they still account for 51.9% of all sales transactions in November 2023.


Dubai Property Market is Diversifying

One of the most interesting aspects of the Dubai property market is its diversity and variety. Dubai offers a wide range of properties to suit different tastes, budgets, and lifestyles. Whether you are looking for a luxury penthouse, a cozy studio, a spacious villa, or a trendy townhouse, you will find it in Dubai.

Furthermore, the Dubai property market is constantly evolving and adapting to the changing needs and preferences of buyers and investors. With over 130 new projects in the planning stages, it is expected that the supply of new properties will remain high well into 2024. However, it is also anticipate a shift in the type of product offerings, especially a reduction in the luxury and ultra-luxury segments, as the market becomes more balanced and affordable.


Conclusion

Dubai is the hottest real estate market for investors in 2023, and for good reasons. The city has been showing remarkable signs of recovery and growth in its property sector, with prices, sales, and launches reaching new heights.

There’s a diverse and dynamic range of properties to suit different needs and preferences, making it an attractive destination for buyers and investors alike. If you are interested in investing in Dubai properties, use Viewit to search for video listings!

With video, you can see exactly what you’re getting before even stepping into the property! This is ideal for investors that are based outside of the UAE. Check out Viewit here!

Written By: Ashar Iqbal Published On: 19 December 2023

Share this article on:

Subscribe to stay in the loop