The rise in purchase and rental prices reflects Dubai’s real estate appeal

This past year has seen a growth in the price of real estate in Dubai. Several neighbourhoods have experienced a purchase price jump of about 34%, with rental prices skyrocketing as much as 46%. This trend is attributed to strong buyer demand in Dubai’s real estate market.

The cost of a villa in Dubai Hills has reached AED 2,406 (USD 656) per square foot, 34% more than the price reported the previous year. The cost of an apartment in the same neighbourhood grew by 25% to AED 1,882 (USD 512) per square foot.

On Palm Jumeirah, the cost of an apartment rose by 17% and currently stands at AED 2,632 (USD 717) per square foot. Other neighbourhoods such as Downtown Dubai and Dubai Marina have witnessed property prices nearly double.

Rental costs in Dubai’s more prestigious neighbourhoods are also experiencing a growth of about 46%. For example, the average annual rent for a three-bedroom villa in Dubai Hills is now AED 279,000 (USD 75,959), almost double what the price was in 2022. Two-bedroom apartments in neighbourhoods such as Palm Jumeirah and Downtown Dubai are being rented out at prices approximately 27% higher than the year before.

The growth in demand and the cost of renting or buying property are clear indicators of Dubai’s attractiveness on the real estate market. The market will continue to thrive as more and more international companies and foreign employees move to the emirate.