Dubai’s Property Prices Raised!
In November, Dubai‘s property market continued its ascent, witnessing a 1.17% increase in prices, reaching an unprecedented Dh1,271 per square foot—a new record surpassing the previous high set in September 2014.
According to the latest data from Property Monitor, while houses initially sparked the market’s rebound, apartments are now driving the growth phase due to robust demand. The report highlighted a steady increase in prices last month, marking a three percent elevation compared to the peak observed in 2014.
Since the onset of the post-COVID-19 era, Dubai’s property market has exhibited a consistent upward trajectory. This surge stems from a notable influx of foreign residents and investors.
Initially observed in the luxury property sector, the market momentum has now expanded to encompass the affordable housing segment. Consequently, this heightened demand has resulted in a shortage of available residential units.
A notable observation lies in the accelerated growth of Dubai’s population in contrast to the supply of residential properties in the current year. As per the Dubai Statistics Centre, the city welcomed 100,000 new residents in 2023, while the completion of new properties totaled only 50,000 the previous year.
This disparity underscores the necessity for Dubai to achieve a 50 percent annual increase in new property supply to adequately cater to the escalating demand.
Since reaching a low point in October 2020, Dubai’s property prices have surged by an average of 44.9 percent, showcasing varying growth trajectories among residential property types. Initially slower in their recovery, apartments gained substantial momentum in the third quarter of 2022, experiencing notable upswings.
However, townhouses and villas, which had witnessed subdued growth, appear to have reached a plateau,” explained Zhann Jochinke, Director of Market Intelligence and Research at Cavendish Maxwell.
Notwithstanding the recent record highs, Dubai’s property prices continue to remain more affordable compared to major global cities like Hong Kong, London, Paris, and New York.
Property Monitor documented 122,657 sales transactions in the initial 11 months, marking a notable 40.3 percent increase compared to the previous year. The current outlook anticipates exceeding 130,000 sales by year-end, surpassing the initial projected range of 120,000 to 125,000 transactions.
Industry experts anticipate a sustained upward movement in property prices throughout 2024. However, this growth is expected to proceed at a more moderate pace due to supply limitations that are struggling to match the soaring demand.
Lewis Allsopp, CEO of Allsopp & Allsopp Group, shared an optimistic outlook, mentioning, “In the absence of unforeseen events, 2024 is poised to witness Dubai not only maintaining its growth trajectory but potentially setting new records well into the year, building upon the recent attainment of all-time highs.