Dubai Real Estate Market Sees Record Transactions in 2023

The real estate market in Dubai shows growth in transactions during 2023, according to CBRE. As per the report, the total residential sales transactions in Dubai for 2023 stood at 118,993 units. This marked a sizable % YOY increase of 29.6%. It sets a new record for deal volumes in the Emirates’ property market.

The off-plan and ready properties segments performed exceptionally well, highlighting the vibrant demand for homes despite moderate price increases. The affordable new supply delivered primarily drove the off-plan sales, whereas end-users and investors alike purchased ready units.

While rental rates grew by 18.9% in 2023 over the previous year, the hike was comparatively lower than in 2022. Prime areas continue to see higher rental demand, ensuring steady appreciation in the long run.

As per projections, rents are expected to increase further in 2024, especially in downtown Dubai, Business Bay, and other prestigious locations. The pace may, however, be more gradual than in previous years owing to rising interest rates and overall economic uncertainties.

On the inventory front, about 39,190 residential properties were completed and handed over to owners in Dubai last year. Supply is slated to rise significantly in 2024, with around 68,880 units scheduled for completion across the emirate.

Meanwhile, Dubai’s industrial and logistics real estate continued gaining traction in 2023. Companies accelerated their warehouse expansion plans within the emirate driven by the thriving non-oil sector growth. Built-to-suit facilities witnessed a spike in demand from various industries.

With the proper supply-demand, transaction volumes and prices in Dubai’s real estate will likely retain bullish momentum through 2024. It affirms its reputation as a top global real estate investment destination. The sector’s impressive performance underscores Dubai’s economic recovery and strong fundamentals.