Dubai real estate achieves unprecedented milestones in 2023
New records set for volume and value of sales transactions.
2 min
In a groundbreaking year for the Dubai real estate market, 2023 witnessed historic highs in both transaction volume and value, solidifying the city’s position as a global real estate powerhouse. The records set in 2023 underscore the resilience and attractiveness of Dubai’s property market, even amid global economic challenges.
Soliman Hossameldin, Director of Digital Marketing at D&B Properties, expresses his perspective on the achievements, stating: “The remarkable successes in Dubai’s real estate market in 2023 underline the dynamic nature of the landscape, continuing to capture the attention of investors and residents worldwide. These milestones truly emphasize the strength and maturity of Dubai’s real estate sector.”
The key highlights of Dubai’s real estate achievements in 2023 include:
1. Record-breaking Transactions: The volume and value of sales transactions reached unprecedented levels in 2023, surpassing all previous records. Notably, average prices in September 2023 exceeded the peak set in September 2014, maintaining an upward trajectory throughout the final quarter despite a dip in off-plan transactions.
2. Tenant to Buyer Transition: A combination of rising rents and a desire for long-term stability has driven tenants to transition into buyers, defying higher interest rates. D&B Properties observed a significant shift toward domestic demand, with the percentage of buyers identifying as end users increasing from 38% to 44%. This shift signals the maturation of the market and instills confidence in greater price stability.
3. Population Surge: Predictions for an increase in new Dubai residents proved accurate, with the population surpassing 100,000 in 2023. The rapid growth cements Dubai as a preferred destination for global citizens, drawn by the promise of a safe haven, unparalleled lifestyle, and a favorable business and tax environment.
4. Supply-Demand Dynamics: The number of new properties handed over in 2023 remained relatively unchanged from the previous year, failing to keep up with the speed of Dubai’s population expansion. This supply-demand imbalance put pressure on rents, resulting in a 24% increase in the average rental price. More tenants are opting for lease renewals, leading to a surge in tenant retention rates and record-breaking occupancy levels.
5. Luxury Real Estate Boom: Dubai’s luxury real estate market experienced an unprecedented year, driven by an influx of millionaires globally. The UAE surpassed the United States and ranked second only to Australia in wealth migration. Palm Jebel Ali and Palm Jumeirah continued to attract high-net-worth individuals, showcasing the ongoing popularity of waterfront residences, with branded residences also in high demand.
6. Anticipated Growth in 2024: The anticipated increases in new property handovers in 2024 align with the continuous influx of expats to Dubai. While a slowdown in the rapid price increases observed since 2019 is expected, continued growth at more sustainable levels reflects the evolution and maturity of Dubai’s real estate market.
These milestones solidify Dubai’s position as a global real estate leader, attracting investors and residents alike. The city remains a beacon of stability and growth in an ever-changing global landscape.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
This collaboration will extend into the fourth phase of Azizi’s Riviera project in MBR City, with Cummins supplying top-tier power generators.
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Azizi Developments, a prominent private developer in the UAE, and Cummins Inc., a global leader in power solutions design, manufacturing, distribution, and supply, are extending their partnership into the fourth phase of the large-scale Riviera project. Cummins, known for its diverse range of products including diesel, natural gas, electric, and hybrid powertrains, as well as powertrain-related components, like filtration, after-treatment, turbochargers, fuel systems, control systems, air handling systems, automated transmissions, electric power generation systems, batteries, hydrogen generation, and fuel cell products. The manufacturer is globally renowned for its excellence in both innovation and sustainability.
Mr. Farhad Azizi, CEO of Azizi Developments, said: “As we continue our collaboration with Cummins Inc. for the fourth phase of our flagship project, Riviera, we reaffirm our commitment to procuring and utilizing only the highest quality materials. This partnership highlights our dedication to providing exceptional lifestyles for our investors and end-users through the careful selection of premium components. We are confident that our now-broadened alliance with Cummins Inc. will help in maintaining the high standards established for Riviera and further elevate the benchmarks of quality and excellence.”
Riviera is part of Azizi Developments’ award-winning portfolio. It is a stylish waterfront lifestyle destination that comprises 75 mid- and high-rise buildings with approximately 16,000 residences.
Designed to introduce the French-Mediterranean lifestyle to Dubai, which is not merely about architectural art, but also about a certain ‘joie de vivre’ — a celebration of life, an exultation of spirit, Riviera represents a new landmark destination that is both residential and commercial, with an abundance of retail space. Riviera features three districts: an extensive retail boulevard, a lagoon walk on the shores of its 2.7 km-long swimmable crystal lagoon with artisan eateries and boutiques, and Les Jardins — a vast, lush-green social space.
With its strategic location near the upcoming Meydan One Mall and the Meydan Racecourse — home of the Dubai World Cup — as well as Dubai’s most noteworthy points of interest, Riviera represents one of Azizi Developments’ most coveted projects.
Azizi Developments’ Sales Gallery can be visited on the 13th floor of the Conrad Hotel on Sheikh Zayed Road.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
