Real estate in Dubai in 2023: expert forecast

Many people call Dubai the “City of Tomorrow”, and there are really a lot of reasons for this. This city is considered to be one of the most interesting places in the world. Millions of people come here every year for both recreation and permanent residence. The real estate market is actively developing, with developers giving priority to elite Dubai real estate in recent years. For area-focused insights, see Dubai Land: Who needs property in the area?. Today, many investors and guests of the resort are interested in: what awaits the Dubai real estate market in 2024? Let’s have a look at some forecasts.

2022 results

According to statistics, Dubai real estate prices increased markedly by the end of 2022, but did not reach peak values, as they did in 2014. The cost of apartments has risen by 8.5% since January, and the cost of villas – by 13%. If we take into account the average price per square foot, we can see the following values: 1149 AED ($312) and 1359 AED ($370) respectively.

The most expensive apartments are offered in the Jumeirah area, and villas – on Palm Jumeirah.
In September 2022, an important deal was concluded: a land plot on the famous paradise island was bought for 600,000,000 AED (more than $163 million).
A couple of weeks before that, the most expensive villa in Dubai was purchased here. Its cost was 302,000,000 AED.

Such deals show that rising prices do not stop potential buyers. This is due to exclusivity – there are not so many such offers, so the demand for them is only increasing. In addition, the influx of wealthy investors was also attracted by the golden visa – after all, most often foreign citizens purchase luxury real estate. Some of them need it for permanent residence, others for renting out.

ROI income can be substantial. A recently purchased villa on Palm Jumeirah was rented out during six months for AED 4,000,000 (just over a million US dollars). If we calculate the annual cost, we get a new record in the amount of income from renting Dubai property. The previous record set in 2021 was AED 7,500,000 per year. This revenue was brought by a villa located in the Emirates Hills.

More affordable type of housing – apartments – were also in great demand. And in 2022, their sales reached record levels. A significant increase in rent stimulated the purchase of real estate. Peak values were recorded in August: the average price increased by 24.9% compared to the beginning of the year.

In the same period, its maximum values also extended to elite housing. The cost of renting villas out increased by 24.2%. In the remaining months until the end of the year, there were no significant price hikes in the real estate rental sector.

These dynamics have continued into 2023 and beyond, reinforcing Dubai’s appeal to high-net-worth buyers and investors looking for stable, long-term returns.

What analysts say about the real estate market in 2024

2022 and 2023 were significant periods for the Dubai real estate market: almost every month saw new records in transaction value and volume. 2024 has begun with strong momentum, including notable luxury property sales that signal sustained investor interest.

Analysts expect continued growth in Dubai’s real estate market in 2024. The combination of the golden visa program, improving tourism, and ongoing infrastructure development supports demand for both residence and investment properties. For a broader long-term outlook, see The Future of Dubai Real Estate: What to Expect in the Next Decade.

Specifically, luxury segments are anticipated to stay strong as international buyers seek premium assets. For insights on master-planned communities like Akoya Oxygen, see Predicting the future: 3 expert opinions on real estate in Akoya Oxygen.

Property prices in Dubai are projected to continue rising in 2024, driven by foreign investment and a favorable visa environment. The velocity of growth will depend on global economic stability and local policy support. According to the forecasts of the Central Bank, the UAE’s economy is expected to sustain growth through 2024, supported by tourism, trade, and real estate activity.

Summing up

The Dubai real estate market continues to attract millions of buyers. 2022 saw a peak in sales of properties, but even despite a significant price increase, the number of transactions increased significantly compared to 2021. This was facilitated by various factors: a simplified visa system, an increase in rent, and an uneasy global situation.

According to the forecasts of leading analysts, in 2024 housing prices in the emirate are expected to continue growing. So, according to experts, on average they can rise, with the best buying opportunities often appearing in the early part of the year, and prices higher by year-end as demand remains robust.