Cranes dot the Dubai skyline, and ultra-luxury homes are changing hands at record prices, signs that the city-state’s property is booming. 

In 2023, Dubai was one of the hottest real estate markets, recording 166,400 real estate transactions valued at $172.61 billion, according to official Dubai Land Department (DLD) data. 

Real estate investments grew 55% year on year to $112 billion, propelled by 113,655 investors, marking a 20% rise year on year, the UAE state-run Wam news agency reported.

The real estate industry remains a key barometer of its success, accounting for 8.9% of the economy. Massive infrastructure spending, generous income tax policies, and an “open-door” approach to immigration have attracted thousands of foreigners.

The data shows 7,449 GCC investors accounted for 10,441 investments valued at $8.3 billion. At the same time, non-resident investors rose to 42% of the total new investors.

The total volume of transactions reached a new high of $1.6 million, rising 16.9% annually across various real estate activities, ranging from real estate transactions to rental agreements in 2023.  

Marwan bin Ghalita, acting director general of DLD, says that the growth underscores the strength of Dubai’s economic performance.

While Arab investors made up more than $7.9 billion through 17,047 investments, foreign investors injected $75 billion through 122,937 investments.