Dubai real estate market smashes transaction records

The Dubai real estate market experienced a record-breaking year in 2023, with residential transactions reaching 118,993 units, a 29.6% year-on-year increase. The off-plan market and secondary deals were the driving forces behind this robust growth, showcasing the resilience and attractiveness of the sector. Despite sustained high demand, rental rates in Dubai moderated, with average residential rents increasing by 18.9% year-on-year. In Abu Dhabi, apartment rents saw a modest 2% increase, while villa rents rose by 0.8% in the fourth quarter of 2023. Looking ahead, CBRE projects continued rental growth in both cities, particularly in prime areas, in 2024. Dubai witnessed the delivery of 39,190 residential units in 2023, with an additional 68,880 units expected in 2024. Abu Dhabi saw the completion of 2,961 units in 2023, with further deliveries anticipated in 2024. Dubai's industrial and logistics sector also stood out as one of the most resilient asset classes, driven by the expansion of the non-oil sector and increased demand for built-to-suit warehousing facilities.