Dubai Property Prices Reached a Record High that Surpassed September 2014
Recent reports highlight a landmark achievement in Dubai’s real estate market, with property prices soaring to their highest ever, exceeding the peak seen in September 2014. The latest statistics reveal a significant rise in property prices in Dubai, with a notable 1.71% increase recorded in November, pushing the price to an all-time high of Dh 1,271 per square foot. The apartment sector is leading the growth phase due to high demand, following the initial recovery led by villas and townhouses.
According to the insights of industry experts, the apartment sector is currently leading the growth of the initial improvement of villas and townhouses. In recent months, prices have been gradual, but they were 3% higher than the 2014 record.
Since the COVID-19 pandemic, Dubai has experienced a steady increase in property prices, primarily due to the significant influx of international residents and investors. This shortage, initially observed in the luxury market, has now extended to more affordable housing as well.
The growth rate of Dubai’s population is faster than the supply of residential properties. Data from the Dubai Statistics Centre (DSC) shows that in 2023, the city welcomed 100,000 new residents, against a backdrop of just 50,000 new properties delivered in 2022. To match this demand, Dubai needs to introduce a 50% increase in new properties annually.
According to recent reports, in the initial 11 months of the year, there have been 122,657 property sales transactions, marking a significant 40.3% rise from the corresponding period the previous year. It’s now predicted that the total sales by the end of the year will exceed 130,000, surpassing the initial expectation of 120,000 to 125,000.
Read More: Dubai Property Price Trends In 2024
Industry leaders predict that in 2024, Dubai will see a continued upward trend in property prices, even though at a more gradual and consistent rate, owing to the ongoing mismatch between supply and demand. But compared to major international cities such as London, Paris, New York, and Hong Kong, Dubai’s property prices are still reasonable. The outlook for Dubai’s real estate market remains positive, with expectations of continued price growth in 2024.
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