Dubai average property prices forecast to post double-digit growth in 2024

After its record-breaking performance in 2023, Dubai’s real estate sector is poised for continued growth in 2024, with average price rises of 15% forecast by property analyst Realiste.

The firm, which provides real estate forecasts based on analysis driven by artificial intelligence, says the attractiveness of Dubai's real estate market is further underscored by its relatively strong outlook compared with other global cities like London, where economic challenges such as rising inflation and tax hikes are impacting the property market .

Dubai set for long-term growth

According to Realiste’s analysis, Dubai is expected to enjoy a prolonged period of sustained growth, albeit at a somewhat slower pace compared to the rapid expansion seen in previous years. The market's resilience is expected to be buoyed by a combination of strong demand, innovative government initiatives, and a focus on sustainable, technology-driven solutions.

As noted in Property Finder’s most recent UAE Residential Real Estate Report, Dubai recorded its best-ever quarterly performance in Q3, 2023, in terms of transactional values, reaching AED97.54 billion (US$26.5 billion) compared to AED69.38 billion in Q3, 2022.

“The market value of sales transactions increased by 40.6% compared to Q3, 2022, forming a new high for the total sales value. [Dubai’s] strong economic growth and tourism industry have led to steady demand for housing, in addition to the instability of the global economy,” the report stated.

New policies help boost demand

Demand for quality residential real estate options is expected to remain robust, with demand consistently outpacing supply in popular areas. Government policies, such as the reduction of transaction fees and the introduction of long-term residency visas, are set to attract further foreign investment in the property market .