Dubai announces up to a 200% increase in property prices

The extraordinary demand for real estate in the years after the epidemic has caused prices in Dubai to skyrocket, surpassing their 2014 peak.

Investors are keen to cash in on the benefits from the three-year increase in property prices, turning Dubai's residential market into a seller's market.

Industry experts note that while the property price rally is displaying signs of slowing down, the anticipated plateau in growth is prompting some investors to sell their properties. They aim to reinvest in new areas that hold the potential for better returns.

Buyers who acquired property during the pandemic have witnessed substantial appreciation in their assets, with prices soaring by up to 200 percent. Many of these buyers are now transitioning into sellers to leverage the gains accumulated over the past few years.

According to a study conducted by BetterHomes, sellers currently hold a favorable position, benefiting from a surge in property transactions and escalating prices driven by heightened buyer demand. The robust population growth in Dubai further fuels demand and prices, creating a favorable environment for sellers, particularly in areas with limited supply.

Toni Abou Jaoude, sales manager at Betterhomes, highlights the allure of selling in Dubai, where sellers can enjoy significant returns on investment and zero capital gains or property taxes. The burgeoning demand from end-users, coupled with limited inventory, underscores the seller's market conditions, enticing sellers to capitalize on their real estate investments.

Properties purchased during the pandemic year have witnessed substantial value appreciation, ranging from 50 percent to as high as 200 percent in certain areas. The top-performing areas in terms of returns include downtown, District 1 MBR, Jumeirah, Dubai Hills, Palm Jumeirah, and DIFC.

Looking ahead to 2024, Mayed Alrashdi, a research analyst at Emirates NBD, anticipates headwinds for Dubai's property market. Factors such as continued high interest rates, declining affordability, and an increase in the supply of new units could pose challenges. However, the influx of new supply is expected to help stabilize residential real estate prices in the coming year.

Read also: The UAE announces grants these residents whose earning 15,000 dirhams Green residence

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