The International Monetary Fund (IMF) has reported that the United Arab Emirates witnessed the fastest increase in property prices among all countries in 2023.
As per the IMF, the UAE is among the top ten nations where real estate prices have risen the most since before the pandemic, with a 10.4% increase in 2023 and a 14.15% surge from the pre-pandemic level. The United Arab Emirates ranks sixth in terms of the rise in property prices since the pre-pandemic era.
Industry executives attribute this double-digit price escalation over the past two years to a significant influx of foreign workers and high demand from affluent individuals, resulting in all-time high property prices.
Furthermore, the supply of residential real estate has lagged behind population growth over 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. The scarcity of luxurious and ultra-luxury apartments in sought-after areas has led to record-high prices for villas and penthouses in the country.
According to the Property Monitor, Dubai’s prices per square foot reached a historic high of Dh1,271 in November 2023, surpassing the previous peak recorded in September 2014.
Countries recording highest property price increase in 2023:
| Country | Change (%) |
| UAE | 10.39 |
| Mexico | 4.72 |
| Israel | 3.1 |
| Portugal | 2.42 |
| Thailand | 1.54 |
| Japan | 0.62 |
| Malaysia | 0.27 |
Countries recording highest property price increase pre-pandemic:
| Country | Change (%) |
| Israel | 23.7 |
| Portugal | 22.29 |
| US | 19.15 |
| Japan | 15.29 |
| Netherlands | 14.4 |
| UAE | 14.15 |
| Australia | 9.24 |
| Mexico | 8.44 |
| Hungary | 7.71 |
| New Zealand | 7.68 |
