The UAE’s residential property market has concluded 2023 with remarkable growth, driven by high demand, leading to price hikes, according to property consultancy firm CBRE, Invest-Gate reports.

CBRE anticipated the strong momentum to continue into the new year.

In its report for the last quarter of the previous year, CBRE stated that the average prices of residential units in Dubai soared by 20.1% until December. Apartment and villa prices increased by 19.8% and 21.8%, respectively. Despite decreased rental growth throughout the year, the market witnessed more stability. Average residential rents in Dubai rose by 18.9% annually until December 2023, slightly lower than November’s 19.2%.

In terms of supply, an estimated 39,190 residential units were delivered in 2023, with 34.4% located in projects like Meydan One, Downtown Dubai, and the Dubai International Financial Centre. An additional 68,880 units are expected to be delivered in 2024.

In December 2023, market activity slowed, with a 30.3% decrease in transactions compared to the previous year. This decline was attributed to a 69.7% drop in off-plan sales, while secondary market sales increased by 35.3%.

Nevertheless, total transactions reached 118,993 deals in 2023, the highest ever recorded, surpassing the 2022 record by 29.6%. Looking ahead, CBRE expects prices to remain relatively strong in both the apartment and villa sectors, albeit at a slower growth rate.