The average property price in Dubai has reached a nine-year high, shattering the previous all-time price per square foot record set in 2014, according to a report.
The latest data from Data Hub for November 2023 indicates that the Property Monitor’s Dynamic Price Index (DPI) now stands at an average sales price of AED1,257 per square foot.
This marks a substantial increase and surpasses the previous record set in 2014, signifying a robust performance in the emirate’s property market.
Dubai’s current 36-month property market cycle has yet to reach its peak. What we are witnessing is a continuation of a strong and stable upward phase, making 2023 the most active and high-performing year in Dubai real estate since records began.
Reflecting on the differences between the current market cycle and the 2014 peak, the report highlighted the shift in market dynamics as the city’s property market is driven by far higher numbers of end users, ensuring a more sustainable level of growth compared to the speculative investor-driven surge in 2014.
The CEO also highlight the positive indicators supporting the emirate’s growth trajectory, citing data from various sectors.
The Roads & Traffic Authority reported an 8 percent year-on-year increase in Salik registrations for new cars, private schools in Dubai noted a 12 percent year-on-year growth in enrollment, and telecoms users in Dubai increased by 9.4 percent year-on-year.
Looking ahead, Allsopp expressed confidence in the emirate’s continued growth, particularly with the 2040 Urban Master Plan.
Dubai’s population has surpassed 3.6 million, growing at 3 percent per year. The city aims to achieve a population of 5.8 million by 2040, indicating sustained demand for property.
However, challenges persist in the form of undersupply. The report highlighted that despite efforts by developers, the market will remain under-supplied for the foreseeable future.
By the end of 2023, less than 50,000 new properties will be handed over, significantly less than the net population growth for the same year.
While we cannot see into the future, if 2024 passes without any natural disasters/events the Dubai property market will continue to thrive. Contrary to declining, it will likely set new records well into 2024, following its recent all-time high.