Dubai reports record quarter as real estate sales continue to surge

According to a report released on Tuesday by ValuStrat Dubai, Dubai's housing market continued to grow in the third quarter, with prices and sales rising as more people move to the city.

According to a survey by a business and real estate firm, prices of villas in Dubai increased by 7.6% in comparison to the second quarter and by approximately 20% yearly between July and September. Furthermore, the report states that values "surpassed peaks seen in 2014 by 2.6%." The locations with the best performance were Dubai Hills Estate, Palm Jumeirah, and Jumeirah Islands.

Referring to the company's proprietary index, the report stated that "the VPI [ValuStrat Price Index] grew a record 6.1% quarter over quarter to reach 96.6 points, 15.1% higher than last year."
The data showed that premier homes saw a 6.6% increase from quarter to quarter and a 16.5% annual increase. The value per asset (VPI) for prime villas increased by 8.5% quarter over quarter and by 20.2% year over year to a new 10-year high of 135.7 points.

According to the data, more consumers are purchasing homes off-plan. Deals increased 2% on a quarterly basis and 19.1% when compared to the third quarter of 2022. Such a residence now costs, on average, AED 2.5 million (US$680,641), an annual 13% increase.

For a total of AED 26.4 billion, existing home sales were up 17.7% year over year but down 5% from the prior quarter.

It should come as no surprise that Dubai is experiencing a population surge given the amount of activity in the housing market. The report states that since 2014, the city has welcomed almost a million new residents. And migration is happening at an even faster rate.

The research states that "net migration in the first nine months of 2023 exceeded net migration in the full year 2022, indicating a 2.2% annual net population increase as of end of September 2023, as opposed to 2.1% annual growth in 2022.