Real estate prices in Dubai are expected to rise in 2024

In 2024, further price increases are expected in the fast-growing property market of Dubai, after last year's high figures. In 2023, property prices in Dubai Production City (IMPZ) increased by more than 49%.

The cost of budget-friendly apartments in sought-after areas of the emirate has increased by a huge 5–50%. In the affordable real estate segment, the most popular neighbourhoods among potential investors and buyers are International City, Dubai Residence Complex, DAMAC Hills 2 and Dubailand.

In the mid-range real estate segment, the sales transaction costs of apartments rose by 3%, whilst the average transaction price in highly coveted areas with villas increased by 15–21% in the middle segment. Property buyers with a mid-range budget choose Dubai Silicon Oasis, Al Furjan, Jumeirah Village Circle and The Springs to buy their properties.

According to experts, a noticeable increase in the prices of apartments and villas is expected in prestigious areas of Dubai in 2024. In the luxury real estate sector, there has been a steady increase in transaction prices in the range of 3% to 17% in most districts. During 2023, luxury property investors preferred the communities of Business Bay, Dubai Marina, Arabian Ranches and Dubai Hills Estate.

Examining the return on investment (ROI), based on a predictive basis of profitability, the areas of DIP, Liwan and Discovery Gardens offered investors returns of up to 11%.

The impressive total volume of property transactions in 2023, amounting to about AED 410B (USD 112B), confirms the stability of the market, whilst the total number of deals in 2023 constituted 132,628. The notable increase in real estate prices reflects the attractiveness of the Dubai market for investors.