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Dubai had a population of 3.55 million in 2022, and it continues to grow rapidly as the city has become a second home for many expats.
As the growing demand for housing exceeds the supply in the real estate market in Dubai, leading developers have launched several new residential developments, including Dubai Ritz-Carlton Residences, Mama Residences Dubai, Safa One and Safa Two Towers, Cavalli Couture and a community from Azizi Developments for $5.4 billion.
Content:
- Emigrants stimulate real estate market growth
- Dubai property industry growth
- Dubai’s largest sales in 2023
Emigrants stimulate real estate market growth
Off-plan development projects have motivated foreign investors to enter Dubai’s ever-growing real estate market. In addition to accelerating housing construction, the emirate is also developing urban infrastructure to provide residents with everything they need to maintain their living activities.
From year to year, the population of Dubai is growing and affects the growth of the real estate market. The emirate’s strong emigration flow is driven by high-class living conditions, stability and ample opportunities for business or employment.
The recent visa reforms have also had a positive impact on the Dubai real estate market, as they have enabled foreign investors to enjoy additional benefits when purchasing housing.
Dubai property industry growth
Dubai’s real estate market growth is directly linked to population growth. In 2022, annual transactions exceeded half a trillion dirhams. Total transaction costs in 2022 reached AED 528 billion ($144 billion).
The rental market is also experiencing an increase in demand. Average rents for rental properties increased by almost 27% last year, while villas and apartments increased by 27.1% and 24.9% respectively. As demand increases due to population growth, these figures are expected to rise further in 2023.
Dubai’s largest sales in 2023
In total, in early 2023, Dubai recorded 2,157 transactions with a total value of over AED 9 billion ($2 billion).
The list of the most significant land transactions includes two land plots in Al Wasl for AED 148 million ($40 million) each, followed by another land plot on Island 2 for AED 112 million ($30 million).
The largest real estate transactions are:
- A flat on Island 2, sold for AED 410 million ($112 million).
- An apartment in Business Bay for AED 220 million ($60 million).
- A residence in the Palm Jumeirah for AED 125 million ($34 million).
Dubai is ready to attract investors, entrepreneurs, specialists in search of work and lovers of luxurious living conditions. This resulted in a showcase of a high level of real estate, developed infrastructure and the growth of various sectors.
