Dubai's Real Estate Boom: Pakistanis Among Top Buyers in 2023

In a notable transformation, Pakistanis have now emerged as one of the top 10 purchasers of real estate in Dubai in 2023, as per a report from Better Homes, a prominent property consultancy in the emirate. Dubai’s real estate sector has experienced unprecedented growth, witnessing a substantial surge in property transactions and prices, with an increase of approximately 18%—a significant acceleration from the 11% observed in 2022.

The report by Better Homes highlighted that Indians secured the leading position as the primary buyers of real estate in Dubai for 2023, surpassing Russians who held this position in the preceding year. The total value of properties sold in Dubai in 2023 reached an impressive AED 322 billion, indicating a substantial 52% year-on-year increase. The population of Dubai expanded by 100,000 residents during the year, contributing to the robust performance of the real estate market.

Indian and UK buyers dominated property transactions in Dubai, while Russians now hold the third-largest position. Significantly, Pakistanis climbed to the seventh-largest buyer group, indicating a considerable uptick in property acquisitions. Buyers from Egypt, Lebanon, and Turkey also displayed a noteworthy rise in real estate transactions.

According to the state news agency WAM, Dubai’s GDP saw a growth of 3.3% between January and September 2023. The accommodation and food services sector experienced a notable growth of 11.1%, while transportation and storage services, along with the information and communications sector, recorded positive growth of 10.9% and 4.4%, respectively.

By November 2023, Dubai’s property market achieved new milestones, surpassing a previous record set in September 2014, as reported by Property Monitor. Several communities in Dubai witnessed a widespread increase in the average sales prices of villas, ranging from 15% to 30%. Shortages in available inventory contributed to significant increases in popular expat communities, such as Arabian Ranches (up 25%) and Dubai Hills Estate (up 29%).

The luxury real estate market in Dubai, continuing its momentum from a record-breaking 2022, sustained an impressive 89% growth in transactions involving properties valued over AED 15 million.

Key factors contributing to the appeal of Dubai’s real estate market include the allure of long-term visas, a favorable tax regime, an appealing overall lifestyle, and the relative affordability of luxury homes. Better Homes estimated that around 4,500 millionaires had relocated to the UAE in 2023, underscoring the enduring attractiveness of Dubai’s real estate market.