The Prices of Properties In Dubai Is Still Increasing
Dubai's real estate market has demonstrated unwavering growth, with property values increasing for the eleventh consecutive quarter as of Q3 2023
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Dubai's real estate market has demonstrated unwavering growth, with property values increasing for the eleventh consecutive quarter as of Q3 2023, and the trend is expected to persist with analysts forecasting a sustained rise over the next half-decade. This growth trajectory is attributed to Dubai's real estate prices being significantly lower than those in leading global cities, alongside a forecasted scarcity of supply in the years ahead.
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Dubai property markets other cities in the world
When placed in comparison with international property hotspots, Dubai's market offers far more value for money. Data from a real estate company reveals a stark contrast in what $1 million can secure across the world: a mere 17 square meters of prime property in Monaco versus an expansive 105 square meters in Dubai. This stark difference positions Dubai as an appealing destination for wealthy individuals and investors seeking valuable real estate investments.
The professionals of Dubai Housing expressed confidence in the continued attractiveness of Dubai's property market, especially in the luxury properties like DAMAC Park Greens and Emaar Club Drive, where he anticipates significant price appreciation over the next five years and beyond.
More New Housing Properties are to be built
A property company finding indicate that the construction pipeline for residential properties in Dubai, not including branded residences, stands at 77,864 units to be completed by the end of 2028. With an expected annual average of 13,000 homes, this falls short of the historical completion rates, suggesting an undersupply relative to the anticipated population increase and the high demand for luxury and prime neighborhood dwellings.
A professional who is a partner and head of research for a company, highlighted the continuous demand for prime properties in Dubai as the city enters its fourth year of sustained price escalation in this current market cycle.
How are the sales going on in the last quarter of 2023
As per the sales number, there was a little decrease in the number of transactions in September, with 7,500 homes sold compared to over 10,000 per month from January to August. Despite this, the third quarter of 2023 saw a 5 percent increase in residential property values, resulting in a 30 percent cumulative rise since Q1 2020. However, the market still remains 7 percent below the highs of 2014.
The luxury real estate market of Dubai has garnered immense confidence from investors worldwide, underpinned by the city's opulent lifestyle, strategic global position, and dynamic growth narrative.
How much increase in the price of Apartments and Villas in Dubai.
The real estate market in Dubai has experienced a significant increase, with apartment costs escalating by 5.1%, bringing the price per square foot up to Dh 1,300. Since the beginning of 2020, the market overall has grown by approximately 26%, including a 19% increase over the previous year. Despite these gains, current prices are still 10% lower than the highs reached in 2014.
In the domain of upscale villas, the market has demonstrated continued strength. There was a notable 4.5% price increase from June to September, which raised the average cost to Dh 1,580 per square foot. This change marks an 18% rise compared to the same timeframe last year and an impressive 57% climb since the first quarter of 2020, illustrating a rapid acceleration in the growth of Dubai's property sector.
While recent sales figures have shown a slight dip, the overall upward trajectory in property values points to a resilient market. Dubai's real estate market is promising for investors, with both luxury apartments and villas showing impressive appreciation in value. This is due to strategic development, good demand, and a robust economic framework, which ensures Dubai's position on the world stage as a prime location for real estate investment and growth.
Conclusion
Dubai's real estate market is currently experiencing a considerable and consistent growth phase, and there are no indications of it slowing down. The market's affordability in comparison to other major cities worldwide, along with an anticipated scarcity in supply, is laying the groundwork for a flourishing market that is likely to continue attracting substantial investment and attention in the coming years. As the city cements its position as a luxury and lifestyle destination, the property sector is profitable for both normal buyers and investors, maintained by a strong demand for high-end properties.
