Knight Frank – Dubai Residential Market Review Winter, 2023-24

Residential property prices in Dubai increased by 3% in Q4 2023, marking the 12th consecutive quarter of price growth and a total growth of 19.4% in the past year. Villas saw a 6% increase in value, while apartments saw a 3% increase in Q4. Despite these increases, average prices remain 4.3% below the 2014 peak. The forecasted supply of housing units is below the long-term average completion rate, with 110,695 units currently launched or under construction. Prime residential areas such as the Palm Jumeirah saw a 16.3% increase in values, with the average price per square foot at AED 3,647. The number of homes for sale in prime markets decreased by 38.5% in 2023, indicating a shift towards a 'buy-to-stay' and 'buy-to-hold' mentality among buyers. The forecast for house price growth in the mainstream market is 3.5%, while prime areas are expected to see growth closer to 5%. Branded residences trade at a premium of 88.6% compared to the rest of the market, with an average price of AED 3,019 per square foot.