The Dubai property market reached new highs in November, crossing a previous record set in September 2014, according to latest data released by Property Monitor – a UAE-based real estate technology and market intelligence platform.
According to the report, Dubai property prices maintained their upward trajectory – recovering from the October 2020 slump – standing at AED1,271 per square foot, just over 3% above the previous all-time high and market peak of September 2014, added the report.
The date was calculated via the Property Monitor Dynamic Price Index (DPI) that tracks trends of residential property prices throughout 42 key communities in Dubai.
The total volume of sales transactions increased 0.75% month-on-month culminating in the highest volume ever for the month of November. These trends are likely to continue, added the report.
Dubai property prices surge at fastest pace since 2014
Mortgage transaction values even reached new highs, increasing 7.8% in November.
Sales transactions also increased with top developers Emaar Properties and Nakheel taking top market share. The AED3-5 million bracket grew at the fastest pace.
Earlier this week, Khaleej Times reported that Dubai’s property supply far outstrips demand, as the population also remains on a growth trajectory.
According to Dubai Statistics Center data, the emirate’s population grew by over 100,000 in 2023 to more than 3.65 million by mid-December, resulting in very high demand for residential properties. This is further leading to rising prices and a glut in the luxury sector, according to Khaleej Times.
This development has been further facilitated by the government relaxing visa policies, which has led to an influx of foreign nationals.
The emirate city has been focused on attracting people and capital to drive long-term growth as part of an economic model focused on property investment, tourism and inflows of foreign capital.
Dubai a ‘natural’ fit for Pakistanis looking to buy property abroad
As a result, Dubai saw a 52% increase in the number of Golden Visas issued in the first half of this year, as compared to the same period of the previous year, according to General Directorate of Residency and Foreigners Affairs (GDRFA).
Real estate industry executives added that supply will not be able to keep pace with the demand even in 2024 due to the high influx of foreigners and residents increasingly turning buyers amidst rising rentals, added Khaleej Times.
Pakistanis also remain among the top 10 buyers of real estate in Dubai.
Russia, India and the United Kingdom are among the top buyers.
A the beginning of the year, the property boom was driven by an influx of Russians who purchased properties in some of Dubai’s most popular areas, following Western sanctions.
Current geopolitcal sensitivities are likely to continue dictating property trends in the gulf.
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