The maximum demand and income for housing in Dubai is in the middle price segment

Buyers in that category are looking for combinations of luxury, convenience and affordability.

Strong demand for affordable, high quality apartments and a significant rise in luxury real estate prices have helped push up apartment prices in all available areas of Dubai.

According to the ValuStrat report, in September 2023, the affordable apartment segment saw a 1.6% increase and an overall year-over-year increase of 11%, the highest increase in apartment values in 10 years.

Analyst firm ValuStrat also emphasized in its latest report that. villa prices hit a record high, breaking price records previously set in June 2014, up an average of 15.8% from last June. By districts, villas in Jumeirah Islands showed the highest annual increase in value at 20.8%, followed by Emirates Hills with 19.6% and Palm Jumeirah with 17.9%. These locations are home to some of the most expensive homes in Dubai, and clearly indicate a growing demand from ultra-wealthy buyers who are making Dubai their new home.

According to Savills, average sales volume over 5 years increased by 209%.

There were more than 57,000 real estate transactions in Dubai in the first half of 2023, up 44% from a year earlier, with sales of completed homes accounting for 47% of the total, the highest demand we have ever seen for completed homes. This is explained by the fact that. That buyers are looking for options where they can move in immediately after purchase.

Dubai also witnessed record sales in the under-construction real estate sector totaling $9.3 billion in the second quarter of this year, representing 58.7% per sector compared to the secondary real estate sector. That's quite a dramatic shift from previous years when completed homes dominated sales. At the same time, while off-plan sales declined in September 2023, likely due to people returning from vacations and getting back to the normal rhythm of work and school, demand increased in the secondary market, with sales of completed homes rising significantly.

Overall, record sales of land plots, villas and apartments reached US$ 2.23 billion in one week through October 20, which clearly shows - demand remains strong.

Buyers in the mid-price market are looking for a combination of luxury, amenities and affordability, both in the ready-to-build and off-plan housing sectors, compared to more expensive villas and townhouses. The mid-price market is by far the largest demand segment in Dubai, with under-construction and completed properties at competitive prices accounting for the largest share of sales volumes.

Population growth also supports a positive outlook for future demand across all real estate sectors. In June 2023, the Dubai Statistics Center reported that Dubai's population had grown by 100,000 residents since last June. Major real estate investors, are moving to Dubai mainly from the UK, Russia, India, Italy, France, France, China and other Middle Eastern countries. This trend is expected to continue throughout 2024 and possibly 2025, which means the price trend is unlikely to change soon, with many analysts predicting a 14-15 percent increase in property values in 2024.

By the end of 2023, the performance of Dubai's real estate sector demonstrates the success of the emirate in maintaining its growth and momentum. Record land sales this year also underline the confidence of existing and new developers in the real estate sector, with many new projects being prepared for 2024. The sector's growth over the past two years is a strong indicator of what we can expect next year. That said, a large part of the real estate community remains extremely positive about the year ahead. Despite the number of unfinished projects across the emirate, it is easy to appreciate that the real estate boom here is in full swing.