Dubai Real Estate Market Hits Record High in 2023: CBRE Report Highlights Rental Trends, Supply Outlook, and Industrial Sector Resilience
The real estate market in Dubai is soaring to new heights in 2023, with residential transactions hitting a record high, according to a report from CBRE. The report revealed that a total of 118,993 residential units were sold, representing a significant 29.6 percent increase from the previous year. The off-plan market and secondary deals were the driving forces behind this impressive growth, showcasing the resilience and appeal of Dubai’s real estate sector.
Despite the continued high demand, rental rates in Dubai have shown a slight moderation in 2023. Average residential rents rose by 18.9 percent year-on-year, a slight decrease from the growth seen in the previous year. In Abu Dhabi, average apartment rents saw a modest 2 percent increase, while villa rents experienced a marginal 0.8 percent rise in the fourth quarter of 2023. CBRE predicts further rental growth in both Abu Dhabi and Dubai, particularly in prime areas, throughout 2024.
On the supply side, Dubai saw the delivery of 39,190 residential units in 2023, with a significant portion concentrated in key areas such as Meydan One, Downtown Dubai, and Business Bay. An additional 68,880 units are expected to be completed in 2024, reflecting the ongoing development activity in the emirate. In Abu Dhabi, 2,961 units were delivered in 2023, with more anticipated in 2024, particularly in Yas Island and Al Maryah Island.
Meanwhile, the industrial and logistics sector in Dubai has emerged as a standout asset class, with demand fueled by the expansion of the non-oil sector. Built-to-suit warehousing facilities have seen a surge in demand, with companies from various industries actively seeking warehouse space and driving transaction activity in the market.
As the UAE’s real estate sector continues to evolve, these trends highlight the dynamic nature of the property market and the diverse opportunities it offers for investors and occupiers. Stay tuned for more news on real estate developments.
