Price Jump in November 2023 for Residential Real Estate in Dubai

November 2023 was a month of significant changes in the residential real estate market in Dubai. According to the latest data from ValuStrat and their VPI price index, Dubai residential real estate prices have not only increased, but have surpassed the record highs of 2014. Let's take a closer look at these trends that make buying real estate in Dubai particularly attractive.

Significant Price Growth

In November 2023, VPI in the Dubai villa market exceeded 2014 price peaks by more than 50%. Compared to October 2023, VPI increased by 2.2%, where villas rose by 2.5% and apartments by 1.9%. Year-on-year, comparing to November 2022, VPI is up 18.4%, with villas up 23.3% and apartments up 14.1%. These figures show a steady increase in interest in buying a home in Dubai.

Areas with High Price Increases

The highest annual price increases are observed in the following areas:

• Villas: Jumeirah Islands (30.4%), Palm Jumeirah (29.4%), Dubai Hills Estate (29.2%).
• Apartments: Discovery Gardens (24.3%), Palm Jumeirah (23.9%), The Greens (22.2%).

These data clearly show exactly where buyers and investors can expect the greatest return on their investment.

Stable Rent Growth

Rental prices also continued their upward trend in November 2023. CBRE reports that average annual rents increased by 19.2% from November 2022, where apartments increased by 19.6% and villas by 16.6%. Average annual rental prices were US$30,000 for apartments and US$88,000 for villas. The highest rental rates were recorded in Palm Jumeirah for apartments (USD 70,000) and in Al Barari for villas (USD 313,000).

Buy vs Rent

Dubai Land Department and Property Finder's November 2023 report shows a narrowing gap between buying and renting real estate. The total value of transactions has increased by 36% compared to November last year. This reflects the growing interest in both buying and renting property in Dubai.

Purchasers' and Lessees' preferences

• More than a third of potential tenants were looking for one-bedroom properties, about a third were looking for two-bedroom properties, and a quarter were interested in studios.
• Two-thirds of renters preferred furnished apartments, while a third preferred unfurnished apartments.
• Popular areas for rent: Dubai Marina, Jumeirah Village Circle, Downtown Dubai, Business Bay, Jumeirah Lake Towers.
• For buying real estate preferences are similar, with the addition of Palm Jumeirah.

Key Factors for Investors

Based on these trends, investors can more accurately gauge buyer and renter demand. Given the high demand for furnished apartments and villas, investors should pay attention to these categories when planning their investments.

Dubai - A Place of Opportunity

November 2023 clearly demonstrates that Dubai's real estate market remains one of the most dynamic and attractive to buyers and investors from around the world. Steady price growth in both purchase and rental prices makes this market attractive for long-term investment.