A Bloomberg report has confirmed that Dubai’s real estate market outperformed global markets in 2023 due to high demand, particularly from wealthy individuals seeking to relocate to Dubai, Invest-Gate reports.

This demand has been supported by the Dubai government’s facilities and unique features that attract foreign buyers, as well as the recovery from the COVID-19 pandemic and the simplified procedures for obtaining a golden visa. It is expected that the strong performance of the real estate sector in Dubai will continue throughout 2024.

Standard & Poor’s (S&P) predicts that approximately 40,000 properties will be delivered in Dubai in both 2024 and 2025, which is a significant increase compared to previous years when the number ranged from 15,000 to 30,000 properties.

Morgan Stanley also anticipates a shift in real estate developers’ focus towards increasing profits and implementing construction projects for future properties.

In November 2023, S&P projected a 5% to 7% increase in house prices during 2024. Tatiana Leskova, Associate Director of Corporate Ratings at S&P, stated that there is no evidence of a slowdown in Dubai’s real estate prices in the coming year.

According to real estate consulting company CBRE, rents in Dubai have risen by approximately 42% since January 2020, while house prices have increased by around 33%. Villa rents have also experienced a similar trend, reaching an average of USD 88,400 per year, with a 19.2% increase in average rent recorded in November.