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
55-storey residential tower in Downtown Dubai
2 min
Fairmont Hotels & Resorts, a world-renowned luxury hotel brand within the Accor group, has partnered with UAE-based developer Sol Properties to unveil a prestigious residential development in Downtown Dubai, setting new standards in luxury real estate.
The 55-storey Fairmont Residences Solara Tower, the latest addition to Downtown Dubai’s skyline, offers breathtaking views of both the Burj Khalifa and the Dubai Fountain. Construction is currently in progress, with the project slated for completion by the third quarter of 2027.
This development seamlessly integrates Fairmont’s esteemed brand standards in luxury hospitality with Sol Properties‘ extensive expertise in high-end real estate, establishing new benchmarks in urban living. The residences feature meticulously designed spaces, blending elegance with timeless opulence.
Offering a range of spacious layouts and state-of-the-art amenities, these residences epitomize modern luxury living. Expansive terraces provide residents with stunning views of the Burj Khalifa and the iconic Dubai Fountain.
“We at Sol Properties and Fairmont Hotels & Resorts are elated to provide a completely new standard of luxury living in Downtown Dubai,” said its Founder and CEO Ajay Bhatia.
“Our goal is to provide residents with exclusive amenities and personalized services, thereby setting a new precedent for comfort and convenience for end users,” he stated.
“By combining Fairmont’s exceptional hospitality services with our integrated residential environment and attention to quality, this project is certain to offer residents unmatched lifestyle experiences,” he added.
Combining Fairmont’s exceptional hospitality services with Sol Properties’ commitment to quality, this project promises unparalleled lifestyle experiences. The residential development caters to the evolving needs of urban homeowners with a suite of premium amenities and services. Fairmont Solara Tower uniquely stands out by offering private swimming pools in selected apartments.
Residents will have exclusive access to a range of integrated amenities, including gourmet restaurants, fitness centers, and wellness facilities, providing a resort-like experience within their own homes.
Fairmont’s Global Chief Operating Officer Sami Nasser expressed excitement about adding this new branded residence to the Fairmont portfolio. “We are confident that our expertise in the field of luxury hospitality combined with our pioneer approach to residential projects will allow us to redefine the landscape of luxury residences in Dubai and the broader region,” he noted.
The project exemplifies the ongoing expansion and appeal of luxury living in Dubai, especially with the luxury residential real estate market projected to grow by more than 8% by 2029.
“Additonally, the project will redefine the concept of luxury residences with Dubai’s strategic location and investor-friendly regulations, which attract high-net-worth individuals and investors seeking to diversify their portfolios,” said Nasser.
Fairmont Residences Solara Tower Dubai joins a prestigious portfolio of 16 Fairmont-branded residences, with 22 more projects in the pipeline.
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
