In November, property prices in Dubai reached a historic peak, surging by 1.17% to Dh1,271 per square foot, surpassing the previous record set in September 2014, according to Property Monitor. The growth momentum has shifted to the apartment segment, leading the market’s upward trajectory.
Continued Upward Trend
Despite a more moderate pace last month, prices stand three percent above the 2014 high. Factors such as the influx of foreign residents and investors post-Covid-19 have created a shortage of residential units, initially in the luxury segment and now extending to the affordable segment.
Population Growth and Property Demand: Property Prices
Dubai’s population growth outpaced the supply of residential properties in 2023, with 100,000 new residents added while only 50,000 new properties were handed over last year. The emirate requires a 50% increase in new properties annually to meet the growing demand.
Variation in Growth Trajectories: Property Prices
Zhann Jochinke, Director of Market Intelligence and Research at Cavendish Maxwell, notes that since reaching a low point in October 2020, prices have risen by an average of 44.9%. Apartments, initially lagging, have seen stronger gains since the third quarter of 2022.
Global Affordability Comparison
Dubai’s property prices, despite reaching an all-time high, remain more affordable compared to global cities like Hong Kong, London, Paris, and New York.
Record Sales Transactions
Property Monitor recorded 122,657 sales transactions in the first 11 months, a 40.3% increase from the same period last year. Anticipations suggest exceeding initial expectations, with over 130,000 sales expected by year-end.
Industry executives anticipate continued property price growth in 2024 but at a steadier and slower pace due to challenges in supply meeting demand.
Lewis Allsopp, CEO of Allsopp & Allsopp Group, expresses optimism, stating that Dubai is likely to set new records in 2024, following its recent all-time high, barring unforeseen events.