Foreign investors show a lot of interest in Dubai’s real estate, which is the reason why several records were set in the local real estate market last year. The trend is highly likely to continue, and we highly recommend Dubai if you are looking for a destination to invest in. However, you should carefully select the area where you buy property to get the most profit. You can read a more detailed article on a trusted portal to find out how to benefit from the highest possible return on investment in the UAE. You can buy real estate to rent it out or later resell it at a higher price. The portal experts can provide a free session and highlight the best projects currently available.
2023 Statistics
In 2023, the number of real estate transactions completed in the UAE real estate market showed a considerable growth of 38% compared to the preceding year. More than 50% of them imply buying a property whose construction is still in progress.
In September 2023, the price of real estate per square meter showed a record-breaking level (the previous peak was observed in 2014). And even though the number of transactions with facilities under construction decreased in the fourth quarter, the overall upward trend continued.
Both residential and commercial estate was in demand. What is more, the price of apartments and villas in the most prestigious districts of Dubai has shown a substantial increase from 4% to 21% depending on the area.
The cost of real property in the emirate increased by 18% on average along with the soaring demand. Some districts, like Palm Jumeirah and Dubai Creek Harbor, demonstrated a 30% rise! Average Dubai property prices now exceed those observed before the 2014 crisis.
Dubai’s elite real estate sector was in high demand as well, and the number of properties with prices exceeding 15 million dirhams doubled in 2023 compared to the preceding year.
Rented housing was sought after, too, with the supply failing to meet the demand. Average prices showed a 24% increase, and the overall occupancy rate of rented housing reached a stunning 95% due to challenging market conditions.
Most Active Non-Resident Investors
Though the price per square meter went up, the buyers did not become less interested in Dubai’s real estate, and this is especially true if we are talking about foreigners. The first place is taken by the residents of India who invested the largest amounts in Dubai’s real estate in 2023. The British scored second, while the third place was taken by the Russians. The residents of Turkey, France, Pakistan, Italy, Lebanon, and Egypt took the next places.
Local villas and apartments were frequently bought not only as an asset but also as a shelter. Foreigners opted for Dubai’s real estate to acquire a UAE Investor Resident Visa. Foreign UHNWIs were also very active in the market, which resulted in an exceptional demand for elite villas and an unprecedented price rise for premium real estate.
Dubai’s real property market remains appealing to foreign investors as the country offers immigration benefits for non-residents, an attractive return on investment, a business-friendly environment, administrative efficiency, low tax rates, high living standards, and safety for investors. The fact that investors from different countries show an ever-increasing interest in the market evidences the fact that Dubai remains a global haven in times of geopolitical and economic instability.
Higher Return On Investment: Best Districts
Facilities for Resale: Price Fluctuations
In 2023, the following areas were the most interesting for non-resident investors:
- Dubailand
- DAMAC Hills 2
- Dubai Residence Complex
- International City Dubai
Those who wished to buy average-priced facilities flocked to the following districts:
- Springs
- Al Furjan
- Dubai Silicon Oasis
- Jumeirah Village Circle
Investors in premium real estate preferred the following areas:
- Dubai Hills Estates
- Arabian Ranches
- Business Bay
- Dubai Marina
The price of inexpensive apartments in the most popular districts listed above rose by a minimum of 5% and a maximum of 50%. The price of villas located here rose by 10% to 26%, with DAMAC Hills being the only exception as the cost of real estate remained almost unchanged.
Apartments in the average-priced category went up by 3%, with Jumeirah Lake Tower being the only district where the prices decreased by 0.77%. As for villas, the price rose by 15-21%.
If we are talking about the premium segment, a stable price increase of 3-17% was observed in most districts.
Real Estate for Rent
If we take a look at the profits you can generate from rental, here are the Dubai districts that turned out to offer the best return on investments (11%):
- Discovery Gardens
- Liwan
- Dubai Investments Park
If you buy average-priced real property, here are the most attractive districts where you can get profits of up to 9% from renting out your real estate:
- Motor City
- Dubai Sports City
- Dubai Silicon Oasis
As for elite apartments, you can receive profits up to 10%. Here are the leading districts:
- Jumeirah Golf Estates
- Green Community
- Al Sufouh
Suppose you’re keen on exploring Jumeirah Golf Estates as a golf enthusiast. In that case, it’s advisable to pack your golf towels and necessary equipment for the game, as the irresistible urge to play may strike.
Jebel Ali and International City are two more popular districts that offer a profit of about 8%. Average-priced villas in Reem and Jumeirah Village Circle demonstrated a return on investments ranging between 6% and 8%.
Al Barari is a special district where you can purchase elite villas and expect an 8% return on investment.
Is Dubai Property Worth Investing in 2024?
The answer is positive. Experts say that the upward Dubai real estate price trend will continue for at least several years as the supply still fails to meet the demand (it is expected to be on par in 2025). Dubai’s real estate market is expected to set new records in 2024, with the number of transactions rising by 20%.
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