2023: Dubai’s Property Boom Leaves Expats Feeling the Heat!
The average price of an apartment in Dubai has increased by 20% over the past year and a half, the biggest increase in almost a decade, CBRE Group reported Monday. According to CBRE, off-plan sales, which are undeveloped properties purchased directly from a developer, increased by 58.7% in August 2023 compared to the same month last year, while sales of existing properties decreased by 10.2% in August. CBRE’s latest report, “Dubai Residential Market Snapshot,” shows the highest growth in apartment sales since November 2014.
In August 2023, there were 11,328 transactions, the second highest on record, and 79,605 units were bought and sold in the year to date. The city’s housing supply is made up of about 85% apartments, according to Bloomberg, and the real estate market has recovered from seven years of decline due to a surge in crypto millionaires, bankers moving in from Asia, and Russians seeking protection for their assets amid the country’s war on Ukraine.
Dubai’s luxury residential market ranked fourth globally in 2022, surpassing New York City’s 244, Los Angeles’ 225, and London’s 223, according to global real estate consultant Knight Frank’s 2023 Wealth Report released in March. In 2022, 219 luxury Dubai homes sold for more than $10 million.
Rents in Dubai reached new heights this year due to the Russia-Ukraine conflict and the global economic slowdown that, in addition to driving up oil and commodity prices, attracted more Russian real estate investment. From August 2022 to the same month in 2022, average prices in Dubai rose by 20%, while average villa prices increased by 17.3%, according to CBRE. The average annual rent in Dubai for apartments is around $29,000 and that for villas is around $87, 835. The UAE has been one of the main beneficiaries of Russian real estate investments, alongside Qatar and Turkey, in addition to direct capital injections.
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