UAE records highest property price increase globally in 2023: IMF

DUBAI,UAE - January 15: An Aerial View of the Dubai Downtown taken at Sunrise on 15.01.2022 in Dubai, United Arab Emirates. Getty Images/Images Source: Zawya.com

Industry executives say that prices have increased by double-digit rates in the past two years

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UAE records highest property price increase globally in 2023: IMF

Property prices in the UAE have recorded the highest increase among all the countries in 2023, according to the International Monetary Fund (IMF).

The Fund also noted that the UAE is among the top 10 countries where property prices have seen the largest increase since the pre-pandemic level.

Quoting Bank for International Settlements data, the IMF reported that the UAE saw a 10.4 per cent increase in prices in 2023 and 14.15 per cent since the pre-pandemic level. The UAE was ranked 6th in terms of property price increase since pre-pandemic level.

Industry executives say that prices have increased by double-digit rates in the past two years due to the influx of foreign workers into the country as well as high demand from high net-worth individuals, pushing prices to record highs.

In addition, residential property market supply has been lagging behind population growth last year with nearly 50,000 units coming online as compared to the emirate’s population growing by 100,000 in 2023 alone. This resulted in an undersupply of luxury and ultra-luxury units in prime locations, pushing prices to record highs for villas and penthouses in the country.

In November 2023, per-square-foot prices in Dubai hit a record high of Dh1,271, surpassing the previous all-time high of September 2014, according to the Property Monitor.