The Dubai real estate market is a vibrant mosaic of opportunities and offerings where each segment has its own unique ambience, price points and benefits.
In this city, which seems to have grown out of the desert through ambition and visionaryism, real estate becomes a reflection of the dream of luxury and success.
Dubai Real Estate Market. Demand and prices on the rise
The forecast for housing prices and demand for 2024 is based on last year's results. One thing that can be said is that the 2023 tourist peak of 17.2 million tourists can be overcome this year. Investments in this market attract investors from all over the world, let's consider it in detail.
Read also: How to make money from real estate in Dubai?
Luxury segment of Dubai
This is not just housing, but a symbol of status, exclusivity and sophistication. Villas overlooking the Persian Gulf or apartments in the highest buildings in the world will be an expression of individuality. It is important to realize that living here is, without exaggeration, the standard of safety in the world. This makes the country a place where you can truly relax and enjoy spending money. The UAE has strict laws, well-established work of all services and an extremely low crime rate. The feeling of security is literally in the air here! You can not fear for valuable things in the apartments, the state of the car in the parking lot, for the personal safety of yourself and your loved ones on the street.
At the same time, every detail of the interior in the buildings emphasizes the peculiarity and uniqueness of the space. Luxury segment always has an ideal location, excellent quality of construction, as well as convenient additional services - from concierge service to private beaches and SPA centers. It is unobtrusive service, making life easier, allows you to concentrate on the things that are really important to you.
In the areas of Business Bay, Dubai Marina, Dubai Hills Estate and Arabian Ranches according to the Dubai Statistics Center price growth in 2023 reached 3-17%. Among the areas with premium villas, Al Barari stands out with a yield of more than 8%. And Pearl Jumeirah and DAMAC Hills demonstrate ROI from 7%.
Business segment
The orientation of customers here is on comfort and functionality. First of all, convenient location near the business centers of the city, quality housing at a more affordable price compared to the Luxury segment are important. The cost per square meter may vary depending on the district and proximity to key infrastructure facilities. Neighborhoods like Business Bay or Dubai Marina saw a 10% growth last year. In The Springs, Jumeirah Village Circle, Al Furjan, Dubai Silicon Oasis deals showed a 3% growth.
"Until about 2028, the number of properties coming on stream will be less than the growth in population and arrivals. In fact, during this period there will be a shortage of real estate," reminds Peter Raspopov, CEO of INTRUST.
What is happening to the rental market
The rental prices of affordable apartments increased by 4-17%, and in the middle segment by 23%. For example, Al Nahda and Deira enjoyed the highest demand from budget apartment renters.
Premium property rentals grew strongest in Dubai Marina, Business Bay, Dubai Hills Estate and Al Barsha neighborhoods.
Dubai Hills Estate became the leader among the premium segment with 26%. Purchasing housing here for these purposes you can be sure of a steady demand for it at the already established high cost of delivery.
The price of a square meter
To talk about the price of a square meter in the UAE - a thankless job. The cost of real estate in Dubai should always be analyzed with the help of a professional broker, but some benchmarks can be named. The average cost of a square meter in the luxury segment ranges from 10 to 30 thousand dollars and above. Here you need to take into account too many variables - from the proximity of the business center or vice versa, its remoteness and closed territory for outsiders.
For example, in the budget segment last year there was a high demand for residences in International City, Dubai Residence Complex, DAMAC Hills 2 and Dubailand. Prices here increased from 5% to 50% for apartments, but decreased by 10-26% for villas.
The purpose of purchase is also important - rental and rare personal residence require the same level of repair, personal use of the object makes quite different requirements for finishing and furnishing. In addition, INTRUST reminds that when choosing an object should be guided by the number of transactions in the area. If sales have started to decline in recent months, it means that the interest in it is fading. It becomes more difficult to resell such an object and choosing an apartment here for pure resale after the completion of construction may be a shortsighted decision.
Official partner of leading developers INTRUST guarantees an individual approach in the selection of real estate, clarity and high speed of execution of the application, which can be left through a simple form on the company's website.
