Property sales in Dubai surge despite price hikes

The Dubai real estate market shows no signs of slowing down as property sales transactions continue to outpace previous years. Over 60,000 transactions were made in the first half of 2023, a more than 40% increase from that time last year. Last week alone witnessed approximately 3,200 transactions worth a combined total of AED 24.7B (USD 6.7B), as reported by the Dubai Land Department.

Although the real estate market is booming, sales and rental prices have increased dramatically this year. The price of apartments has jumped over 20% and the price for villas has skyrocketed by nearly 50% since January 2023. Rental rates have gone up as much as 50% in some areas, prompting residents to downsize or even consider purchasing their own property instead.

Despite the significant rise in sales and rental prices, demand remains high. This can be attributed to the UAE government’s progressive initiatives that attract foreign investors and expats to the emirate, as well as the relative stability of the economy and high standard of living. The Dubai real estate market is expected to see at least 15% growth in 2024, with no indications of slowing down any time soon.