Hafez told the Global Times reporter: “After going through ups and downs, the Dubai real estate market is entering a new round of growth. Due to the continuous influx of Asian buyers, Dubai’s real estate has seen a huge increase, and it can be said that it has entered a prosperous period again.”
In 2023 to date, the total transaction value of Dubai real estate reached 414.5 billion dirhams, an increase of 58% compared to 261.8 billion dirhams in 2022, showing the strong recovery and vibrancy of the Dubai real estate market.
Of this, cash transactions were 305.2 billion dirhams and loan transactions were 109.3 billion dirhams, up 42% and 4% year-on-year respectively. Cash transactions accounted for 74% of the total transaction value, indicating high cash liquidity in the Dubai real estate market, strong investor confidence in the market, and reflecting the high value and high returns of Dubai real estate. The growth rate of cash transactions was significantly faster than loan transactions, because the increased demand for Dubai real estate and insufficient supply led to rising prices, raising the threshold for loan transactions and making the advantages of cash transactions more prominent.
This shows the strong growth and recovery of the Dubai real estate market, excellent investment returns and appreciation potential. Because of government support and regulation, balanced supply and demand in real estate, the market has vitality and stability, and the investment risk in the Dubai real estate market is relatively low. Dubai’s real estate investment strategy should consider long-term value growth and rental income, and choose suitable property types and locations to obtain maximum investment returns.
According to a Knight Frank report, the average rental yield in the Dubai real estate market in October 2023 was 8.4%, higher than the global average. This means that investors in Dubai can obtain stable rental income. Additionally, Dubai property prices are expected to continue rising in 2024, with an estimated increase of 13.5%, higher than the global average. This means investors can achieve good capital appreciation. And Dubai’s average property prices have already exceeded pre-2014 peak levels. Despite rising prices, buyer interest remains undiminished. In 2023 alone, the UAE attracted over 100,000 new residents, greatly stimulating demand for real estate. Indians and Britons are the most active foreign buyers, while investors from Egypt, Lebanon, Pakistan and Turkey are also significantly increasing their holdings of safe-haven assets in Dubai. Rental increases accompanied the supply-demand imbalance, with Betterhomes’ average listing prices rising comprehensively by 24%. Real estate analysts point out that new housing supply will not increase substantially until 2025 or later, indicating that the Dubai real estate market will continue to prosper in the coming years.
