In 2023, Indians emerged as the top buyers of real estate in Dubai, surpassing Russians who held the leading position the previous year, according to a report by Better Homes, a property consultancy based in the emirate.
The real estate market in Dubai experienced substantial growth, with a record increase in property transactions and prices, rising by approximately 18%, a notable acceleration from the 11% observed in 2022.
The report highlighted that the total value of Dubai properties sold in 2023 reached AED 322 billion, reflecting a significant 52% year-on-year increase. The population of Dubai increased by 100,000 residents during the year, contributing to the robust performance of the real estate market.
Indian and UK buyers dominated property transactions, with Russians now ranking as the third-largest buyers. Noteworthy was the substantial increase in property purchases by Pakistanis, who moved up to the seventh-largest buyer group. Buyers from Egypt, Lebanon, and Turkey also showed a notable rise in real estate transactions.
Dubai’s GDP experienced a growth of 3.3% between January and September 2023, as reported by the state news agency WAM. The accommodation and food services sector saw significant growth of 11.1%, while transportation and storage services and the information and communications sector also experienced positive growth of 10.9% and 4.4%, respectively.
In November 2023, Dubai’s property market reached new heights, surpassing a previous record set in September 2014, according to Property Monitor. Various communities in Dubai witnessed a widespread increase in the average sales prices of villas, ranging from 15% to 30%. Shortages in available inventory contributed to substantial increases in popular expat communities, such as Arabian Ranches (up 25%) and Dubai Hills Estate (up 29%).
The luxury real estate market in Dubai, following a record-breaking 2022, sustained its momentum in 2023, witnessing an impressive 89% growth in transactions involving properties valued over AED 15 million.
Factors contributing to the attractiveness of Dubai’s real estate market included the appeal of long-term visas, a favorable tax regime, the overall lifestyle, and the relative affordability of luxury homes. It was estimated that around 4,500 millionaires had moved to the UAE in 2023, according to Better Homes.
