Property Monitor released the latest figures showing that in November, Dubai’s property prices had continued their upward trend.
In fact, they recorded an increase of 1.17%, which saw them surpass the previous all-time high recorded back in September 2014 to reach AED 1,271 per square foot.
According to industry executives, townhouses and villas had led the initial recovery, but now the growth phase was being led by the apartment segment because of high demand.
According to Property Monitor, the last month saw property prices increase at a more moderate pace and was about 3% higher than the peak recorded in 2014.
After the COVID-19 pandemic, the property prices in Dubai had been rising consistently because of the huge inflow of investors and foreign residents.
This has led to a shortage in residential units, which was first seen in the luxury segment, but has also expanded to the affordable segment now.
Earlier this week, it was reported that the population in Dubai had grown at a faster rate than the supply in the residential property market this year.
Data from Dubai Statistics Center showed that in 2023, a total of 100,000 new residents were added in Dubai, but the last year only saw 50,000 properties handed over.
This shows that almost 50% more new properties are needed in the emirate each year for keeping up with the pace of demand.
In October 2020, the property prices in Dubai had bottomed out, but they have now risen by 44.9% on average.
Different growth trajectories were recorded for each of the three residential property types. While apartments also appreciated, but they had been lagging as compared to townhouses and villas.
This was until the third quarter last year and since then, they have recorded stronger gains, while there has been muted growth in villas and townhouses, as it seems to have tapped out.
But, even though property prices in Dubai have reached an all-time high, they still remain more affordable as compared to global cities, such as London, Paris, Hong Kong, New York and others.
Property Monitor revealed that the first 11 months saw a total of 122,657 sales transactions take place, which is an increase of 40.3% as compared to the same duration in the previous year.
It anticipates that the total number of sales that will be registered by the year end would stand at 130,000. This would be higher than the initial expectations of 120,000 to 125,000 sales.
According to industry executives, property prices are expected to continue increasing in 2024, but since the supply would not be able to keep up with the demand, this rise would be at a slower and steadier pace.
They expect the Dubai market to continue thriving in 2024, as long as the year passes without any events or natural disasters.
As a matter of fact, rather than declining, they believe that the emirate would establish new records in the coming year , after recording its recent all-time high.