Dubai Real Estate Market Surges: Property Prices Reach Unprecedented Heights
In a remarkable turn of events, Dubai’s property market has witnessed an unprecedented surge, with prices hitting an all-time high in November, soaring by 1.17 per cent to a record Dh1,271 per square foot. This surpasses the previous peak observed in September 2014, marking a significant milestone in the city’s real estate landscape, as reported by the latest figures from Property Monitor.
Diverse Growth Trends: Apartments Take the Lead
After an initial recovery primarily led by villas and townhouses, industry executives are noting a shift in dynamics. The apartment segment is now at the forefront of the growth phase, driven by substantial demand. Property Monitor highlights that prices rose at a more measured pace last month, standing three per cent above the 2014 high.
Consistent Upward Trajectory: Factors Behind the Rise
Dubai’s property prices have been consistently on the rise post-Covid-19, owing to a substantial influx of foreign residents and investors. This surge has resulted in a shortage of residential units, initially evident in the luxury segment and now extending to the affordable housing sector.
Population Growth Outpaces Property Supply
Dubai’s population growth has outpaced the supply of residential properties this year, according to data from the Dubai Statistics Centre. With 100,000 new residents added in 2023 and only 50,000 new properties handed over last year, the emirate faces a critical need for a 50 per cent increase in new property entries annually to meet the burgeoning demand.
Impressive Market Statistics: Sales Transactions Soar
Property Monitor reveals an impressive 40.3 per cent increase in sales transactions, recording 122,657 transactions in the first 11 months of the year compared to the same period last year. The market now anticipates exceeding initial expectations, with over 130,000 sales projected by the year’s end.
Future Projections: Steady Growth Amidst Supply Challenges
Despite reaching an all-time high, Dubai’s property prices remain more affordable than those in global cities such as Hong Kong, London, Paris, and New York. Industry executives predict continued growth in 2024, albeit at a more measured pace, as supply struggles to keep pace with escalating demand.
Optimistic Outlook: Dubai’s Thriving Real Estate Landscape
Looking ahead, industry experts express optimism about Dubai’s real estate market. Lewis Allsopp, CEO of Allsopp & Allsopp Group, asserts that if 2024 unfolds without any unforeseen events, Dubai will not only continue to thrive but is likely to set new records well into the year, building on its recent all-time high.