According to a recent study, the Dubai real estate market is experiencing significant growth, driven by strong buyer demand. This surge in demand has led to a notable increase in house prices, with some locations witnessing a rise of up to 34 percent, while rental rates have also surged by 46 percent in certain areas over the past year.
Chestertons MENA’s data for Q3 2023 reveals that properties in well-known neighborhoods such as Dubai Hills and Palm Jumeirah are commanding premium prices.
In Dubai Hills, the most significant price increase was observed in villas, which now average AED 2,409 per square foot, marking a 34 percent increase compared to the same period last year. Apartment rents in the neighborhood also saw a 25% increase, reaching AED 1,882 per square foot.
Palm Jumeirah recorded a 17 percent price increase for apartments, with an average of AED 2,632 per square foot, while Downtown Dubai and Dubai Marina also experienced double-digit price growth.
Rental properties have also seen substantial price growth, with several top neighborhoods in Dubai witnessing annual increases in residential lease rates of up to 46%, according to Chestertons MENA’s analysis.
For instance, the average annual rent for a three-bedroom house in Dubai Hills is currently AED 279,000, approximately half of what it was in 2022. Meanwhile, two-bedroom apartments in upscale neighborhoods like Downtown Dubai and Palm Jumeirah are renting for up to 27% more per year.
The increasing appeal of Dubai as a residential market is evident in the surging demand and rising prices. Nicky Witty, CEO of Chestertons MENA, commented, “Dubai’s real estate sector continues to flourish, with residential and commercial property in significant demand. Dubai Hills has seen the strongest growth in both apartment and villa prices, with impressive year-on-year increases also seen in Mohamed bin Rashid City apartments – a reflection of the popularity and evolution of these communities as they mature.”
With international businesses and expatriate workforces continuing to relocate to the emirate, the Dubai real estate market appears poised for robust growth.
