Dubai’s property market is witnessing a strong recovery as prices and sales continue to rise amid increased demand from foreign buyers. The emirate’s real estate sector has benefited from its successful handling of the Covid-19 pandemic, its liberal visa policies, and its attractive lifestyle offerings.
According to the latest data from Property Monitor, Dubai’s residential property prices increased by 9.8% year-on-year in February 2023, the highest annual growth rate since June 20141. The average price per square foot reached AED 1,000, up from AED 911 in February 20221.
The volume and value of transactions also increased significantly in February 2023, compared to the same month last year. Property Monitor recorded 4,356 sales transactions worth AED 10.9 billion, up by 39.5% and 55.7%, respectively1. The majority of these transactions were for off-plan properties, which accounted for 56.6% of the total volume and 45.8% of the total value1.
The demand for off-plan properties was driven by attractive payment plans, discounts, and incentives offered by developers to lure buyers. The number of these type of properties surged 78.1% in February, while secondary market sales rose 18.8%2. Some of the most popular areas for off-plan sales were Jumeirah Village Circle, Mohammed Bin Rashid City, and Dubai Hills Estate1.
The demand for Dubai property is also boosted by the influx of foreign buyers, who are attracted by the emirate’s reputation as a safe haven amid the pandemic, its world-class infrastructure and amenities, and its liberal visa policies that allow foreigners to obtain long-term residency or citizenship3. According to Property Finder, foreign buyers accounted for 69% of the total sales transactions in Dubai in 2022, up from 59% in 20193. The top nationalities of foreign buyers were Indians, British, Pakistanis, Chinese, and Saudis3.
The outlook for Dubai’s property market remains positive, as the emirate prepares to host the Expo 2020 later this year, which is expected to attract millions of visitors and boost economic activity. The government has also announced several initiatives to support the real estate sector, such as reducing fees, easing regulations, and launching new projects. Analysts expect that Dubai’s property market will continue to grow in 2023 and beyond, as it consolidates its position as a global hub for business and tourism.