Dubai Tops the List of World’s Best Cities in 2024: Real Estate Prices

9:52 pm  |  25.01.2024

Dubai has secured its position as one of the world’s top ten cities in the 2024 World’s Best Cities Report. Notably, it is ranked as the best place to live, visit, and invest.

According to the same report, London maintains its status as the capital of Great Britain, securing the ninth position for the ninth consecutive time.

Dubai ranks sixth globally in the list of the most attractive cities, following only London, Paris, New York, Tokyo, and Singapore.

Interest in living in Dubai remains remarkably high, with people willing to invest in real estate despite challenges such as the hot sun, sandstorms, and concerns about a potential market collapse.

Record-Breaking Real Estate Market in Dubai

The real estate market in the Emirates is experiencing unprecedented growth, setting new records. On average, 10,000 apartments and properties are sold in Dubai every month. In the past year, more than 120,000 transactions were completed, marking a 40% increase compared to the previous year and establishing an absolute record.

READ: Real Estate Financing in the UAE: About Credit Opportunities

Dubai’s Resilient Property Market Post-COVID

Dubai’s property market has successfully rebounded from the impact of the COVID-19 pandemic. Government measures, including the expansion of the 10-year golden visa program and the provision of residence permits for retirees and remote workers, have played a pivotal role in this recovery.

Over the last 12 months, the total value of all real estate transactions has surged by 56%.

Demand and Growth in Specific Dubai Areas

In the third quarter of 2023, the highest demand was observed in three key areas of Dubai: the prestigious Jumeirah Village Circle, tranquil Al Merkadh, and fashionable Business Bay. Each of these areas witnessed the purchase of over 2,000 properties in the past three months.

According to data from the Dubai Land Department, villa prices have surged by 39% compared to the end of 2022.

By the end of 2023, the Dubai Land Department recorded more than 31,000 real estate transactions. In comparison, during the same period in 2020, fewer than 9,000 properties were purchased in Dubai, and in 2018, only 7,000 properties changed hands.

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The cost per square foot increased by 15%, reaching AED 1,598 ($435).

Rental Market Reaches New Heights in 2023

In September 2023, rental prices in Dubai reached unprecedented levels. Villas saw all-time high rents, and the average cost of renting an apartment reached the highest point since January 2017, according to the 2023 Real Estate Rental Report from property consultancy CBRE.

The average rent for apartments in September was Dh95.5 per sq ft, and for villas, it was Dh91 per sq ft—an all-time high.

Over the year, average rents in Dubai increased by 22%, and villa rental prices surged by 30% compared to the previous year. Demand for rental housing witnessed a significant uptick, with 326,000 rental agreements in July 2023—44% more than in the same period in 2019.

Dubai’s Housing Market Dynamics

Interest in housing in Dubai is so robust that landlords find it easier to retain existing tenants. Discounts, such as a month of free rent after a year, have become rare. Many residents opt to renew their contracts to avoid relocation costs and benefit from the right to cap annual rent increases at 20%, particularly in prime and central areas of Dubai. The number of contract renewals has increased by 30%.

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Dubai’s Bright Future as a Real Estate Hub

When considering real estate investment in Dubai, individuals carefully evaluate rental prospects and the cost per square meter. The housing demand in Dubai has set new records among both renters and buyers. The 2024 ranking of the world’s best cities to live and invest in confirms that this demand will persist into the future. Dubai outpaces cities like San Francisco, Amsterdam, Barcelona, Los Angeles, Washington, Istanbul, Vienna, Toronto, Boston, Zurich, and many others.

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