As we step into 2024, Dubai's real estate market promises yet another period of growth, with property prices anticipated to rise in the coming year. This insightful projection stems from the analytics and data from DXB Interact, offering a comprehensive understanding of the evolving dynamics within the real estate sector.
The buoyancy of the UAE property market, particularly in Dubai, finds its foundation in several fundamental factors. Strong buyer demand, coupled with the region's robust economic resilience and heightened investor interest, sets the stage for a promising outlook. However, it is essential to remain mindful of potential shifts, especially in the luxury segment, as cautioned by industry analysts.
Reflecting on the remarkable year that was 2023, Dubai experienced an extraordinary surge in real estate activity, boasting 116,116 property transactions totaling a staggering AED 429.6 billion ($117 billion). This marked a notable 33.8 per cent increase in transactions and an impressive 36.7 per cent rise in values compared to the preceding year, underscoring the market's resilience and enduring allure to investors.
Property Prices per Square Foot Over the Years
The analysis of property prices per square foot over the years highlights the resilience of the Dubai real estate market. The average increase of 14% in the overall market underscores a sustained demand for properties in the emirate.One of the defining aspects shaping Dubai's real estate trajectory is the myriad development projects currently underway. As of the close of 2023, Dubai was actively advancing with 554 development projects, encompassing approximately 180 thousand units. This abundance of opportunities underscores the necessity for meticulous analysis and professional insight to capitalize on investment potential.
At fäm Properties, we recognize the paramount importance of informed decision-making. Hence, we have established a dedicated analytical division comprising top experts from major auditing firms. Leveraging our nuanced understanding of the market, we successfully identified properties in 2023 that yielded returns exceeding 30 per cent on invested capital. Looking ahead to 2024, we are committed to empowering investors with forecasts and detailed analyses, particularly geared towards long-term investment strategies.
Furthermore, with the World Bank and IMF projecting a GDP growth for the UAE of 3.7-4% in 2024, Dubai's real estate market is poised to maintain its strength and appeal. This projection is anticipated to attract global investors and enrich the investment climate with a consistent flow of high-quality project completions. fäm Properties, under the stewardship of CEO Firas Al Msaddi, stands ready to navigate the vibrant landscape of Dubai's real estate sector, providing invaluable insights tailored for success.