Thriving-Automotive

Real Estate Investment Trends: Istanbul vs. Dubai

AUGUST 28, 2023

In the wake of the COVID-19 pandemic, Dubai’s real estate sector experienced a robust resurgence in the previous year. This revival was attributed to the emirate’s economic recovery, driven by elevated oil prices and strategic governmental measures, including alterations in visa regulations to enhance investment appeal. However, it’s essential to examine the sustainability of this growth, considering past patterns of artificially inflated price escalation and potential investor losses (Graph 1).

Graph 1: Dubai Average Property Prices (Per Square Foot)

The upward trajectory of prices in Dubai has led to a rise in rental costs. While this may stimulate property purchases, it could result in reduced rents following price declines, potentially leading to a dual financial setback.

Dubai vs. Istanbul: A Comparative Analysis (Table 1 and 2):

Let’s now compare the real estate trends in Dubai and Istanbul, focusing on real estate transactions, cumulative sales value, and average prices spanning from 2010 to 2023.

Table 1: Total Sales in Dubai (2010-2023)

Year Total Value (Billion Dollar) Sales-Deals Average Price
2010 14,822 30,589 48,455
2015 17,847 23,796 75,125
2016 13,405 20,173 66,450
2017 17,356 24,900 69,702
2018 10,953 17,368 63,064
2019 10,163 17,046 59,621
2020 8,555 21,041 40,658
2021 16,621 16,870 98,524
2022 31,198 42,870 72,773
2023 48,855 60,997 80,094
Source: Arabian Business

Table 2: Total Sales in Istanbul (2010-2023)

Year Total Value (Billion Dollar) Sales-Deals Average Price
2010 6,528 77,721 84,779
2015 32,895 237,767 138,349
2016 28,791 232,428 124,099
2017 27,036 238,383 113,596
2018 19,145 234,055 81,794
2019 15,448 237,675 65,181
2020 17,682 265,098 66,715
2021 26,075 276,223 94,456
2022 28,717 259,654 110,849
2023 30,000 265,000 113,207
Source: TUIK

Comparing these two cities, we observe a discernible pattern in Istanbul’s total sales, characterized by relatively moderate fluctuations in prices. In contrast, Dubai experienced an upward trajectory in average real estate prices, followed by a decrease. For instance, between 2010 and 2015, Dubai saw a 50% appreciation in real estate prices (Table 1 and 2).

Graph 2: Dubai Average Residential Prices (Per Square Foot)

It’s crucial to scrutinize the 2023 price hikes in Dubai to determine whether they are rooted in genuine market dynamics or driven by artificial factors (Graph 1 and Table 1).

Dubai and Istanbul: Diverse Economic Landscapes:

Dubai primarily thrives as an oil-centric metropolis, while Istanbul emerges as a multifaceted hub encompassing production, tourism, and exports. The disparities between these two cities are considerable and manifold. To gain further insights, let’s delve into the variations in real estate prices per square meter within the two urban landscapes (Graph 2 and 3).

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