Dubai real estate and tourism sectors drive remarkable economic growth in 2023
In a year marked by global economic uncertainties, Dubai's real estate and tourism sectors have shown extraordinary resilience and growth, significantly contributing to the emirate's economic expansion in 2023.
According to the Central Bank of the UAE (CBUAE) and based on Dubai Land Department (DLD) data, Dubai saw a 37% year-on-year increase in real estate transactions in the third quarter of 2023, surpassing AED500 billion (US$136 billion) in value. The first three quarters of 2023 recorded more than 116,000 transactions, marking a 36% rise from the previous year.
Additionally, the number of new investors in Dubai's real estate market rose by 15%, with the average residential property sale price and rent increasing by 0.3% and 12%, respectively, the CBUAE said.
Investors flock to Dubai property market
Meanwhile, UAE property portal Bayut attributed the citywide surge in property prices to a “significant influx of local and international investors” in 2023. Bayut sales data shows that average prices for apartments and villas in prime neighbourhoods across Dubai rose anywhere between 4% and 21% last year.
The firm said the price increases also reflected Dubai's robust economic growth in 2023, attractive investment opportunities available in the city, and its growing status as a global business hub.
Bayut estimated that Dubai recorded 132,628 property sale transactions in 2023, with a total value of AED409.8 billion, highlighting the strength of the market leading into 2024 and its reputation for delivering impressive returns to investors.
Tourism and hospitality industries post strong gains
Complementing the city’s real estate boom, Dubai's tourism and hospitality sectors have been thriving. In the January to November period of 2023 (the latest for which official data is available), Dubai's average hotel occupancy rate reached 77%, clearly surpassing both 2022 and pre-pandemic levels.
Despite a slight decrease in the average length of stay per guest, total occupied room nights soared by 12% year-on-year and 31% from 2019, totalling 38.01 million nights.
Meanwhile, following impressive and consistent growth in passenger numbers in the January to November period, Dubai International Airport upped its 2023 passenger forecast to 86.8 million, up from 85 million, indicating a return to pre-pandemic levels.
The first three quarters of 2023 alone accounted for 64.5 million passengers, with a remarkable 22.9 million travelling through the airport during the peak summer travel period.