UAE Leads Global Property Market with Highest Price Increase in 2023, IMF Reports

The International Monetary Fund (IMF) reports that among all the countries, property prices in the United Arab Emirates have increased at the fastest rate in 2023.

The UAE is one of the top ten nations where real estate prices have increased the most since before the pandemic, according to the Fund.

According to data from the Bank for International Settlements, as reported by the IMF, prices in the UAE increased by 10.4% in 2023 and by 14.15% from the pre-pandemic level. Regarding the rise in property prices since the pre-pandemic level, the United Arab Emirates came in sixth place.

According to industry executives, the surge in foreign workers into the nation and the high demand from wealthy people has caused prices to rise at double-digit rates over the last two years, reaching all-time highs.

Moreover, the supply of residential real estate has been falling behind population growth in the past year, with only about 50,000 units entering the market compared to the emirate’s population growth of 100,000 in 2023 alone. Due to a shortage of luxurious and ultra-luxury apartments in desirable areas, the nation’s prices for villas and penthouses reached all-time highs.

According to the Property Monitor, prices per square foot in Dubai reached a record high of Dh1,271 in November 2023, exceeding the previous all-time high of September 2014.