RIYADH: Dubai’s real estate market witnessed strong growth in 2023, with rental prices for villas surging 16.2 percent year-on-year in the fourth quarter, official data showed.
According to the latest report released by the Central Bank of the UAE, median rental prices for apartments soared by 10.2 percent in the final three months of last year compared to the same period in 2022.
CBUAE added that the rental yield in Dubai also increased to 4.4 percent at the end of 2023 from 3.4 percent at the end of the preceding year.
Rental yield is the percentage of the property value received over a year through client earnings.
The report noted that residential real estate sales transactions in Dubai increased by 20.7 percent year-on-year during the last quarter of 2023.
The data revealed that lease rates in Abu Dhabi posted mild growth rates in the fourth quarter.
According to the central bank, the median rental price for villas and apartments in Abu Dhabi marginally rose by 2.3 percent and 1.8 percent respectively in the fourth quarter of 2023 compared to the same period of the previous year.
Residential real estate sale transactions in Abu Dhabi also increased by 33.9 percent in the fourth quarter, driven by a 175.5 percent surge in apartment sales.
Strong growth in the tourism sector
The report added that the total count of hotel guests in Abu Dhabi surged to 4.1 million in the first 10 months of 2023, representing a rise of 28 percent compared to the same period in 2022.
The average revenue per available room in Abu Dhabi also witnessed a 24 percent year-on-year increase, reaching 293 dirhams ($78.12).
Data from the 12 months of 2023 indicated that Dubai maintained its status as a leading global tourism destination.
Hotel occupancy rates in Dubai rose to 77 percent, a 4 percentage points increase from the corresponding period in 2022 and 2 percentage units higher than the pre-COVID-19 figures of 2019.
CBUAE added that the influx of international visitors to Dubai reached over 17 million in 2023, representing a 19.4 percent rise compared to 2022.
Transportation rebounds
According to the report, Abu Dhabi Airports experienced a substantial increase in passenger traffic, reaching almost 23 million commuters in 2023, up 44.5 percent year-on-year.
Similarly, Dubai’s airports welcomed 87 million visitors last year, a 31.7 percent growth compared to 2022.
