Dubai Real Estate Market Booms in Q4 2023: Record High Capital Gains

The Dubai real estate market had a remarkable fourth quarter of 2023, with residential capital gains hitting a new high in a decade. The ValuStrat Price Index (VPI) reported a 19.9 percent year-on-year increase, reaching an impressive 103.1 points, equivalent to a 6.7 percent quarter-on-quarter increase.

The VPI uses ValuStrat’s proprietary research and valuations to measure the latest price movements in real estate. According to the ValuStrat Dubai Q4 2023 Real Estate Report, both apartments and villas saw significant growth in capital values.

Apartment prices surged, with a 15.4 percent year-on-year increase in the VPI, driven mainly by mid-affordable communities such as Discovery Gardens, The Greens, and Motor City. Meanwhile, the villa market experienced robust growth, with capital values reaching 133.1 VPI points, a 24.9 percent year-on-year increase.

Prime properties also saw substantial valuation increases, with prime market villas hitting a 10-year peak at 147 points, reflecting a 26.6 percent year-on-year jump. Transaction activities in the fourth quarter were particularly vibrant, with a total of 12,001 ready secondary home sales recorded – the highest in history.

Looking ahead to 2024, the Dubai real estate market is expected to continue booming, driven by the UAE economy’s projected 4 percent expansion and increased demand due to Dubai’s rising population and tourism. With the city’s non-oil sector leading the way, the real estate market is poised for further growth and development.