Dubai Real Estate Market Boasts Strong Recovery, Outperforming Global Markets

The Assistant Director for Corporate Affairs in the Gulf Cooperation Council countries at the global credit rating agency “Standard & Poor’s” affirmed that the residential real estate sector in Dubai has witnessed a very strong recovery over the past three years since 2020, with annual price increases surpassing most other global markets, particularly in prime locations.

Liskova, in an interview with the Emirati newspaper “Al Khaleej,” added, “The agency believes that the real estate sector in Dubai is approaching its highest level reached.

Reports have mentioned that villa prices have exceeded previous peak levels, while average apartment prices remain 10% to 20% lower than previous peak prices due to historical oversupply.

Developers in Dubai have seen a growth in property sales over the past three years, reaching a record number in 2023. This growth has been supported by a strong demand from international buyers, as well as regional interest driven by improved oil prices.

Additionally, developers have achieved significant increases in revenues, providing them with a positive outlook on their future earnings in the next two to three years.

It is expected that prices in Dubai will grow by an average rate of 5% – 7% in 2024, reflecting a gradual stability of prices and the possibility of a slight correction, which we believe will not exceed 5%-10%.

Some of the main risks that threaten demand dynamics include long-term interest rate hikes as well as the uncertain implications of geopolitical conflicts. Demand for real estate in Dubai is also influenced by sentiment and may be affected by unfavorable changes in oil prices, given its importance to regional economies.