A Deep Look at the Rise in Dubai's Housing Deals in 2023
Dubai's housing market saw a notable rise in the first nine months of 2023. The figures say that there is a %36.7 in transaction value and a %33.8 increase in transaction volume over the same time in 2022.
During this period, the Dubai Land Department reported 116,116 real estate transactions valued at Dh429.67 billion. Dubai's strong infrastructure, international reputation, and committed leadership focused on development are all responsible for its success.
A Closer Look at the Types of Deals Driving Dubai Boom
In the first half of the year, the real estate in Dubai rise became noticeable. 10,080 residential sales took place in Dubai as of July 2023. It creates a 53.4% increase over the same month the previous year.
The off-plan investments have increased by 78.4%. The resale market sales have increased by 33.8%. The overall number of transactions in the year up to July 2023 was 67,818. This is the largest amount that has ever been recorded.
Even with just a month's change, from June 2023 to July 2023, average prices grew at an average annual rate of 18.1%, up from 16.9%.
The average price of a villa climbed by 16.2% to reach Dh1,552 per square foot. Average villa prices were 7.4% above the comparable peak in 2014. The average price of an apartment increased by 18.5% to Dh1,320 per square foot.
According to Global Commercial Real Estate Services (CBRE), the price rise in Dubai's residential market has begun to slow down slightly by November 2023. A month ago, the average price growth was 19.1%. In November, it was 18.9%. During this time, average apartment prices climbed by 18.3% to Dh1,374 per square foot; average villa prices increased by 22.2% to Dh1,679 per square foot.
On the other hand, many submarkets have already surpassed their previous comparable figures. Dubai keeps its market worth even in the face of slowdowns.
International Investors' Favorite: Short-Term Rentals for Investment
The average residential rent in Dubai increased by 19.2% in November 2023. The average rent for an apartment climbed by 19.6% during that time, while the average rent for a villa increased by 16.6%. The average yearly rent for an apartment was Dh111,622 and for a villa was Dh24,835.
The highest average annual prices for apartments and villas were Dh1,150,552 in Al Barari and Dh258,335 in Palm Jumeirah.
Upon witnessing this increase, investors took action to buy property in the UAE, Dubai intending to use the short-term rental strategy in 2023.
Key Factors Fueling the Surge in Residential Deals
Dubai has grown to become a global hub for investment and trade thanks to its favorable location, business-friendly laws, geopolitical stability, and strong economic diversification. The city offers a wide range of investment opportunities, from real estate to tourism, infrastructure to technology, to meet the needs of all kinds of investors.
Real estate investing in Dubai has thus proven to be a lucrative venture. It offers an abundance of opportunities for those looking for a unique blend of high returns and minimal risk, along with solid financial advantages and tax-free surroundings.
Investors are even more thrilled as it offers not only a good investment but also an exciting and wealthy lifestyle. This increases along with the ongoing technological and innovative development of living places. Therefore, investors wish to commit over a long time rather than a short term.
Energy-efficient green buildings, smart city infrastructure, and ultra-luxury branded residences like Versace, Bulgari, and Cavalli are some examples. Especially branded residences became the symbol of the Dubai market.
According to market analysts, high-net-worth people have a significant demand for branded residential stock in Dubai. When compared to traditional non-branded prime beachfront residential stock, these are being sold at considerable prices.
Dubai is an International Hotspot for Remote Workers
In addition to being an attraction for tourists and investors, Dubai is also the destination of choice for digital nomads. The level of satisfaction is so great that according to Savills' extensive study, Dubai is among the top locations for digital nomads when considering global connectivity, climate, internet speed, housing alternatives, and standard of living.
Detailed analysis of digital nomads in Dubai published on the page Dubai and Málaga as Premium Destinations for Digital Nomads.
Dubai Golden Visa is on the Rise
The golden visa in Dubai is the first option for investors who wish to remain for an extended time. It is a real estate investment program that allows you to get a long-term visa in Dubai.
Buyers take advantage of many extra benefits of the Dubai Golden Visa, such as an affordable investment amount, no restrictions on the duration of stay, and easy mortgage application. For additional information, please get in touch with TEKCE professionals.