by Nbsrealestate
In 2023, the United Arab Emirates (UAE) emerged as the global leader in property price increases, as reported by the International Monetary Fund (IMF). Among the top ten nations witnessing substantial real estate appreciation since the pre-pandemic era, the UAE claimed the spotlight, showcasing a remarkable surge in property prices.
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The IMF’s data, sourced from the Bank for International Settlements, reveals a notable 10.4% increase in property prices within the UAE in 2023. Impressively, this surge marked a significant 14.15% rise from the pre-pandemic levels, securing the UAE’s position as the sixth-highest in terms of property price escalation since the global health crisis.
Industry insiders attribute this surge to a confluence of factors, with the influx of foreign workers and heightened demand from affluent individuals playing pivotal roles. Over the last two years, this combination has driven prices to double-digit growth, resulting in unprecedented all-time highs.
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Adding to the complexity is a noteworthy disparity between the supply of residential real estate and the population growth. In 2023 alone, the emirate experienced a population growth of 100,000, while only approximately 50,000 residential units entered the market. This supply-demand gap, particularly in the luxury and ultra-luxury segment, has propelled prices for villas and penthouses to unparalleled levels.
According to insights from the Property Monitor, the price per square foot in Dubai reached a historic high of Dh1,271 in November 2023, surpassing the previous record set in September 2014.
For context, here is a comparative list of countries with the highest property price increases in 2023:
- UAE – 10.39%
- Mexico – 4.72%
- Israel – 3.1%
- Portugal – 2.42%
- Thailand – 1.54%
- Japan – 0.62%
- Malaysia – 0.27%
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In the pre-pandemic landscape, the UAE had already demonstrated resilience in the real estate market, securing the sixth position with a 14.15% increase. The top performers during that period were Israel, Portugal, and the US, each showcasing impressive growth percentages.
As the UAE continues to dominate the global property market, the dynamics of supply, demand, and international investments shape its real estate landscape, making it a key player in the ongoing evolution of the industry.
