With its glittering skyscrapers, ultra-secure villas and luxury man-made islands, the Gulf emirate recorded record transactions of more than 132 billion euros in 2022, up more than 76% year on year , according to the authorities.
In the city's swankiest areas, where properties fetch more than ten million dollars, the number of sales last year exceeded that of the whole of the 2010-2020 period, according to the British firm specialist Knight Frank.
Prices there jumped 44%, posting "the strongest growth in the luxury market in the world", while still remaining one of the most affordable, the firm's research director for the Middle East told AFP. East, Faisal Durrani, based in Dubai.
Less rich in oil than the capital Abu Dhabi, Dubai, the second city of the United Arab Emirates, seduces with its advantageous taxation, its luxurious way of life and the abundance of services, provided by thousands of small hands coming mainly from Asia.
Skyscrapers in Dubai, February 18, 2023 in the United Arab Emirates © Karim SAHIB / AFP
The neutrality displayed by the United Arab Emirates vis-à-vis the war in Ukraine has enabled Dubai to attract, since last year, many wealthy Russians fleeing Western sanctions in their country.
The Russians in the lead
While authorities won't disclose investors' nationalities, Betterhomes, one of Dubai's leading real estate agencies, believes Russians were the top international buyers last year.
The British, Indians, Italians and French are also among the main investors.
Construction sites in Dubai, February 18, 2023 in the United Arab Emirates © Karim SAHIB / AFP
Entrepreneurs, business leaders, bankers or celebrities: all are rushing to obtain accommodation in this city which was one of the first in the world to open up after the Covid-19 pandemic.
"We have a lot of customers from Europe who want to move here (...) to start a business or find work," Farhad Azizi, CEO of Azizi group, a promoter who is about to launch, told AFP. the construction of the second tallest tower in Dubai, after the famous Burj Khalifa.
But for the many expatriates, who make up around 90% of Dubai's 3.5 million inhabitants, this real estate frenzy is not necessarily good news.
"It's very good for landlords, much less for tenants," concedes Jacob Fletcher, rental market specialist at Betterhomes, according to which rents have increased by 20% on average in 2022.
With the same budget, newcomers have to make do with smaller, more outlying accommodation.
But it is long-term residents who are bearing the brunt of the impact of rising prices the hardest, he told AFP.
Most of them are used to seeing rents go up and down with the economy, the market having experienced many upheavals in the past, especially after the 2009 financial crisis or during the Covid-19 pandemic.
"crazy" market
The rapid rise in rents in recent months, in a global context of soaring prices, has taken many families by surprise.
"Our owner gave us notice to leave a year ago on the grounds that he wants to sell," a Western expatriate, who has lived in Dubai with her husband and son for five years, told AFP.
Skyscrapers in Dubai, February 18, 2023 in the United Arab Emirates © Karim SAHIB / AFP
"But today the market is so crazy, everything is so expensive, that we have to pay more for smaller and more remote accommodation", laments the young woman who requested anonymity, in a country where her dissatisfaction is publicly expressed. is not to the liking of the authorities.
Social networks are full of testimonials from families in conflict with their owners, seeking to take advantage of current prices before a possible reversal of the situation.
Dubai "is not immune" to the current uncertainties, observes expert Faisal Durrani, who mentions in particular the global economic slowdown and the rise in interest rates.
"But the United Arab Emirates, like Saudi Arabia, are among the fastest growing economies...and inflation levels there are lower than in the rest of the world," he notes.
"So the outlook is more positive than negative."
© 2023 AFP