Dubai real estate prices and rents: Where they rose and fell in April

Dubai’s real estate market is experiencing unprecedented growth with a staggering 80% increase in transactions to Dh157 billion in the first quarter of 2023, up from Dh87 billion in the same period last year. The number of transactions also rose by 49% to 38,715, while the sales value increased by 62% to Dh89 billion. This growth is attributed to the ease of doing business, the successful management of the pandemic and growing confidence in the local economy. Both local and foreign investors are taking advantage of higher capital and rental yields with lower interest rates compared to other major cities. Real estate developers and analysts are optimistic about the growth forecast for this year, as the emirate is expected to be one of the markets with the best capital appreciation due to consistent and business-friendly policies. Knight Frank, a global real estate consultancy, expects property prices to rise 14% this year, the highest in the world for the second consecutive year, as Dubai’s wealth rapidly increases and attracts more millionaires. Real estate prices in Dubai are still cheaper than in other countries such as Monaco, Hong Kong, New York, Singapore, London, Geneva, Los Angeles, Paris and Tokyo, making the local real estate market more attractive to investors. Knight Frank noted that the emirate has taken a pragmatic approach to attracting wealthy residents and has worked hard to correct perceived weaknesses, particularly length of stay. With the Golden Visa, a longer-term stay is possible. Imran Farooq, CEO of Samana Developers, said Dubai’s booming economy and the positive impact of Expo 2020 are the driving factors behind the growth of the real estate market. The Golden Visa and tax-free income tax are also very attractive points for investors. Farooq is optimistic about the rest of the year and expects this momentum to continue, with Samana launching 12 projects this year alone. Foreign investors are also flocking to Dubai’s real estate market, with an increase of 12% in the first quarter of 2023. The proportion of non-residential investors was 45% in the first quarter of this year, 25% higher than in the first quarter of the previous year. The Henley Global Citizens 2022 report predicts that 4,000 millionaires will move to the UAE, particularly Dubai, in 2022, driving demand for prime residential real estate in the emirate. Samana Developers confirmed the official figures and explained that the number of foreign investors in their projects had risen from 50% to over 75%, mainly from European countries.