Dubai Property Boom: Business Bay, Downtown Dubai, JVC Lead with 29% Deal Surge

Dubai, UAE – the Dubai real estate segment shows significant growth this year, as reflected by the new report released by Deloitte on Wednesday. Last year witnessed high transaction volumes, skyrocketing sales prices, and renting rates, as given in the concluded report.

The best real estate areas are – Business Bay, Downtown Dubai, and Jumeirah VillageCircle. The increase in housing prices for residential properties was even higher than the last year, with 18% vs 2022, and rents soared 26%. The villas were revealed to have a bigger trend of sudden price hikes and rent boosts than the apartments in general.

The report showed cash buyers dominated real estate activity in Dubai last year. Demand for affordable houses and townhouses fueled rental market growth. Total transaction volumes rose 29% year-on-year, with secondary/pre-owned properties comprising 41% of total sales. This highlights the strong interest in non-developer homes.

While apartments in Palm Jumeirah saw the highest price increases, neighborhoods like Dubai South and MBR City recorded major gains for villas. Areas like Palm Jumeirah, Dubai Sports City, and Dubailand saw villa prices decline.

Rental rates across Dubai also soared, with areas like DIFC, Jumeirah, and Dubailand Residential seeing 36-39% jumps over 2022. International City had the smallest rental increase at 8%. Office rents rose 17% over 2022 in other real estate sectors, exceeding pre-pandemic rates by 20%. Dubai’s hospitality industry surpassed pre-COVID visitor numbers and occupancy averages of 77%, peaking at 88% in February. Total retail spending is forecast to grow 4.5% annually through 2027, driven by the expanding population and tourist numbers expected by 2030.