Hot housing

Dubai now a ‘seller’s market’ after surge in property transactions

Wealthy Russian buyers and a post-pandemic bump are among the factors that are spurring house sales in the UAE.

Property prices in Dubai crossed their 2014 peak last year (Photo: Getty Images)

Property prices in Dubai crossed their 2014 peak last year (Photo: Getty Images)

A three-year price rally for Dubai property has some declaring that an affordability crisis is taking shape in the UAE’s most populous emirate. It has also made for a seller’s market, as analysts predict a slowdown is coming in 2024 and investors are cashing out now.

Property prices crossed the 2014 peak last year amid unprecedented demand, fueled by surging rental prices and a rising population. Russian buyers and a post-pandemic bump have also spurred house sales in the famously safe UAE. 

Sellers are positioned well, according to a study by Betterhomes, one of the city’s biggest real estate firms, and are now capitalizing on a surge in property transactions and escalating prices driven by heightened buyer demand. 

A seller’s market in Dubai signifies robust demand, limited inventory and a consistent trend of delivering elevated returns to both investors and end-users, according to Toni Abou Jaoude, a Betterhomes sales manager. Betterhomes calculated a significant increase in value from 2020 when the price increases began, ranging from a conservative estimate of 50% to as high as 200% in certain areas of Dubai.

A cooling-off period is expected. Mayed Alrashdi, a research analyst at Emirates NBD, told Khaleej Times headwinds are expected in 2024 as high-interest rates prevail and new units come onto the market. “The anticipated increase in supply, comprising 41,500 apartments and 18,500 villas in 2024, should help to stabilize residential real estate prices this year,” he said.

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