Wondering how apartment prices in Dubai are changing and whether you should buy real estate now or wait? This article will help you understand the current trends in the Dubai real estate market and make an informed decision.
The Dubai real estate market has been showing steady growth since 2020. For example, while in 2020 the average cost per square foot was AED 549, by 2024 it has risen to AED 1,134 - an increase of 207% in four years.
Rising demand for residential real estate in Dubai
Demand for real estate is indeed outstripping supply. In 2023, 89,000 apartments were delivered, while the number of visas issued in Dubai totaled 153,000. This shows that the demand is almost double the supply from real estate developers.
Sales of secondary apartments in Dubai are only slightly inferior to those of new developments in Dubai. You can rent out your apartment, earning an income at an eighth or tenth of the rate of return. Mortgage rates in Dubai are 4-5% per annum, which makes investing in real estate profitable.
Why is the demand for real estate in Dubai increasing?
Dubai attracts investors due to several key factors:
- Tourism. Dubai is visited by about 17 million tourists a year, generating an estimated $21 billion dollars.
- Economic center. Dubai is the financial center of the Middle East, home to branches of major corporations such as Microsoft and Google. Many employees of these companies live and work in Dubai.
- Expat growth. In 2023, the number of expats in Dubai has almost doubled compared to 2021. Example: 39,500 apartments were sold in 2021, 67,200 in 2022 and 99,300 in 2023.
