House Prices in Dubai Rise 21% on ‘Unprecedented Boom’

House Prices in Dubai Rise 21% on ‘Unprecedented Boom’

A leading property portal in the UAE recently disclosed that property prices in Dubai are still seeing an upward trajectory.

This is due to the record influx of international and local investors who are attracted to the high returns on investment.

The search trends on Bayut showed that a favorable setting has been established by the ‘unprecedented boom’ for both landlords and sellers in 2024.

The demand

It is aligned with the increased demand caused by the influx of residents and investors, which has seen the real estate market grow unprecedentedly.

Head of Dubizzle Group MENA and CEO of Bayut, Haider Ali Khan commented that the property sector in Dubai continued with its commendable growth trajectory to end the previous year on a high note.

He said that their data had shown that property prices were able to record sustained progress due to the increase in demand from residents and investors who want to own property in Dubai’s promising market.

Different segments have recorded a rise in sale prices, which reflects the appeal of the real estate landscape in Dubai.

The data from the portal shows that sale prices for villas and apartments across prime neighborhoods in the emirate had recorded a prominent increase, as they surged between 4% and 21% in 2023.

Sale prices

The portal report revealed key factors had propelled the sale prices of property in Dubai, which pushed up the real estate market to unprecedented levels.

There had been an impressive uptrend in sales in the emirate in 2023, which highlighted the desirability and strength of the market.

A combination of factors fueled this increase in demand, which include the attractive investment opportunities, robust economic recovery and influx of both local and international investors.

Dubai’s real estate market offers promising returns on investment, which has attracted investors and it has contributed to the major upward trajectory seen in property prices.

The emirate has an optimistic economic outlook, along with its global business hub status, has helped in sustaining the demand for real estate, which has also resulted in growth in property prices.

The reasons

Realty pundits have said that the real estate market in Dubai has continued to succeed because of an increasing inflow of professionals, increased investor appetite and increase in population.

In addition, the city has also established its reputation as a haven for the rich and wealthy. Rental prices have gone up because net migration has exceeded the rate of new home handovers.

According to CBRE, since January 2020, there has been a 42% increase in rents and a 33% increase in property prices has been recorded.

A similar trend has also been seen in villa rents, as they recorded a 19.2% increase in November to average about $88,400 a year.

According to the analysis from Bayut, potential home buyers and investors in the affordable property segment have shown increased interest in Damac Hills 2, Dubailand Residence Complex and International City.

As for those who have a mid-range budget, property buyers have shown interest in Al Furjan, Jumeirah Village Circle, The Springs and Dubai Silicon Oasis.

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