Indians emerged as the top buyers of Dubai real estate in 2023, while Pakistanis were placed seventh and also surpassed purchases from last year, according to a report released recently by the emirate-based property consultancy Better Homes.
As Dubai’s population added another 100,000 residents in 2023, the property market also saw record purchases and prices. Prices rose by approximately 18% in 2023, an acceleration of the 11% increase seen in 2022, added the report.
Buyers from India and the United Kingdom accounted for the most transactions, with Russians – who topped the list last year – ranked as the third-largest buyers.
Notably, there was a significant increase in buyers from Pakistan – ranked as 7th largest – Egypt, Lebanon and Turkey, indicating Dubai’s continued role as a global safe haven for geopolitical and economic stability, added the report.
‘Dubai remains popular segment’: Emirates expects strong growth out of Pakistan
The total value of Dubai property sold in 2023 was AED322 billion, up 52% year-on-year. Consumer demand also remained on the uptick throughout 2023, with a 91% increase in leads year-on-year.
Dubai’s GDP grew 3.3% between January and September 2023, according to data released by state news agency WAM on Sunday.
Over those nine months, accommodation and food services grew 11.1%, while transportation and storage services rose by 10.9%, and the information and communications sector grew by 4.4%.
Dubai’s property market also reached new highs in November 2023, crossing a previous record set in September 2014, according to data released by Property Monitor earlier.
In 2023, Dubai’s key communities experienced a widespread increase in the average sales price of villas, ranging from 15% to 30%. A shortage of available inventory led to substantial increases in popular expat communities such as Arabian Ranches (up 25%) and Dubai Hills Estate (up 29%).
Sale of $25mn-plus homes doubles in Dubai, cements its ‘ultra-luxury’ status
Recently, Business Recorder reported that interest of Pakistanis in Dubai’s real estate has pivoted a tad from buying properties for investment purposes to looking to relocate in the city. Quoting an official at renowned developer DAMAC Properties, the report added that most Pakistani buyers are usually in their 40s or above, although there are some in their mid to late 30s who are also interested.
In the report by Better Homes, data also suggested an overall tilt towards end-users being buyers of real estate as opposed to investors in 2023.
Luxury market
Meanwhile, after a record-breaking 2022, Dubai’s luxury real estate market maintained its momentum in 2023, witnessing an impressive 89% growth in transactions over AED15 million.
The appeal of long-term visas, a favourable tax regime, lifestyle, and the relative affordability of luxury homes in Dubai attracted wealthy investors globally with 4,500 millionaires expected to have moved to the UAE in 2023, added Better Homes.
In their cosmopolitan push, Dubai has also enacted social reforms such as decriminalising alcohol and the cohabitation of unmarried couples.
Last week, Khaleej Times reported that the sale of top-tier luxury homes – $25 million (DHS92 million) and above – doubled to 56 the past year in Dubai, due to scarce availability as compared to 2022.
In the Palm Jumeirah, the average price of villas surged by 74%, added Better Homes.
Pakistanis among top 10 buyers in Dubai as real estate sales surge in H1 2022
