Dubai saw a 6 percent growth in transactions between Q3 2023 and Q2 this year
Dubai’s real estate market remains fairly valued despite a continuous surge in demand for both rentals and purchases, according to ZāZEN Properties.
The cosmopolitan city has been witnessing substantial price growth, with annualised real price growth of 14.6 percent and annualised rental price growth of 20.3 percent from mid-2022 to mid-2023, figures that stand out globally.
The Dubai real estate sector continues its upward trajectory, with third-quarter results underlining this trend.
The Dubai Land Department (DLD) reported a total of 31,216 transactions from July to October, including 23,042 units, 3,158 buildings, and 5,016 plots.
These numbers represent an impressive 22 percent Year-over-Year (YoY) growth when compared to the same period in 2022.
Comparing the AED97.5 billion in sales transactions in the last quarter to the AED69.5 billion during the same period the previous year reveals a 40 percent increase. Moreover, the emirate saw a 6 percent growth in transactions between Q3 2023 and Q2 this year.
Dubai’s sustainable growth in real estate
Madhav Dhar, COO, and founding member of ZāZEN Properties, attributes Dubai’s continued real estate growth to various factors.
He highlighted the city’s reputation as a geopolitical safe haven, attracting overseas investments, and the increasing focus on sustainable developments in the emirate.
“With the emirate ranked as a top 10 city to live in, migration from overseas is an ongoing trend. Dubai’s projected population growth of 5.8 million by 2040, combined with streamlined visa regulations, a favorable business environment, and a secure, luxurious lifestyle, are all factors driving international interest in the region and contributing to the growth in the real estate market.
“As the UAE leads in sustainable development and establishes itself as a distinct global entity, the emirate’s real estate market is poised for further growth. This is why Dubai is a prime destination for real estate, particularly its current and anticipated fair market value, and, compared to other real estate markets, it has the second lowest bubble risk in the world,” Dhar said.