Up to 200% income: Dubai real estate is becoming a seller's market, with investors capitalizing on rising prices.

Real estate prices in Dubai have increased several times, surpassing the peak of 2014 last year due to unprecedented demand observed in the post-pandemic period. The residential market in Dubai is increasingly turning into a seller's market, allowing sellers to profit from the rise in property prices over the past three years. The industry is indicating that the rally in real estate prices is showing signs of slowing down, and the growth achieved in the near future is prompting some investors to sell and invest in new promising areas that may offer higher returns.

Advantages of sellers

In the spring of last year, property prices in Dubai increased several times, surpassing the peak of 2014 due to the unprecedented demand observed in the post-pandemic period. Interestingly, buyers who purchased property during the pandemic saw their asset prices rise by up to 200 percent, and many of them are now becoming sellers to take advantage of the profits gained over the past few years.

Sale hotels in Jumeirah Lake Towers with city view 190 600 $

UAE,Jumeirah Lake Towers

1 Bedroom

2 Bathrooms

80 м²

Sale shop in Mohammed Bin Rashid City with city view 231 500 $

UAE,Mohammed Bin Rashid City

2 Bathrooms

36 м²

Rent office in Jumeirah Lake Towers with city view 3 070 $

UAE,Jumeirah Lake Towers

140 м²

Sale office in Dubai's Silicon Oasis with city view 63 000 $

UAE,Dubai's Silicon Oasis

20 м²

Sale office in Business Bay with city view 319 000 $

UAE,Business Bay

1 Bathroom

91 м²

Sale flat in Palma Jumeirah with sea view 599 000 $

UAE,Palma Jumeirah

1 Bedroom

2 Bathrooms

95 м²

According to a Betterhomes study, sellers are in a favorable position, capitalizing on the increase in real estate transactions and rising prices driven by growing demand from buyers.

"One of the key advantages for sellers in this rapidly growing market is the potential for high returns on investment, as property owners are currently enjoying favorable rates. Additionally, selling real estate in Dubai offers the benefit of no capital gains tax or property tax."

“The rapid population growth in Dubai further intensifies the demand and prices for real estate, creating a favorable landscape for sellers, especially in areas with limited supply,” said Luis Harding, CEO of Betterhomes.

Market trends

Tony Abu Jaoude, a sales manager at Betterhomes, noted that properties purchased during the pandemic have seen a significant increase in value, ranging from a conservative estimate of 50 percent to 200 percent in some areas.
The best areas in terms of profitability include downtown, District 1 MBR, Jumeirah, Bulgari, La Mer, Nikki Beach, MJL, private villas in Jumeirah, Dubai Hills, Palm Jumeirah, and DIFC.

Forecasts for 2024

Maed Al-Rashidi, a research analyst at Emirates NBD, predicts that the Dubai real estate market may face certain challenges in 2024, including high interest rates, decreased affordability for average homeowners, and an increase in the supply of new properties. He noted that the anticipated growth in supply should help stabilize housing prices this year.