October 2023 - Dubai Real Estate Market Report
Updated: Nov 23
Year-to-date residential transactions through to October 2023 reached an impressive total of 93,590, surpassing the previous full-year record of 92,178 transactions established in 2022. This new milestone underscores the enduring strength and resilience of Dubai's residential market.
SALES VALUE AND TRANSACTIONS
The shift in transaction dynamics was primarily influenced by a substantial decrease in off-plan transactions, while the secondary market witnessed remarkable growth of 29.5 percent during the same period. This positive trend in secondary market activity showcases the resilience and attractiveness of established properties in Dubai.
MONTHLY PERFORMANCE AND SALES VOLUME
In October 2023, Dubai's real estate market experienced an extraordinary year-on-year surge in transaction value, marking a substantial 15.7% increase that amounted to a total of AED 29.4 billion.
TOP PERFORMING DUBAI AREAS
In October, Dubai's real estate market received substantial support from the existing property segment, which recorded an impressive 36.8% year-on-year increase, totaling 5,602 transactions compared to 4,095 in the corresponding month of the previous year. This surge in activity translated into the value of existing properties, witnessing a remarkable 81% growth to reach approximately AED 25.7 billion, a significant leap from the AED 14.2 billion recorded in October 2022. This achievement marks the highest transaction value in the existing property segment for the month of October in over a decade, highlighting the sector's sustained strength and vitality.
Amidst this robust real estate landscape, several Dubai areas emerged as top performers. Leading the way, Jumeirah Village Circle recorded 581 transactions and a sales value of AED 547 million, closely followed by Business Bay with 508 transactions totaling AED 797 million in sales value. Dubai Marina also displayed strong performance, recording 508 transactions with a sales value of AED 797 million. MBR City contributed to the city's thriving real estate market with 403 transactions amounting to AED 473 million in sales value. Additionally, Downtown Dubai showcased remarkable sales volume with 345 transactions, contributing significantly to a total sales value of AED 1,366 million.
SALES VOLUME BY PRICE RANGE & CATEGORY
In response to the evolving real estate landscape, more and more residents are choosing to transition from renting to homeownership. This shift has invigorated the mid-market real estate segment, with a substantial 60% of sales centered around properties priced below 2 million AED. What's noteworthy is the increasing interest from international investors who are keen on seizing this opportunity, particularly drawn to the affordability and modern cosmopolitan lifestyle offered by apartments. The robust demand for mid-market properties in Dubai is further underscored by an impressive 74% demand within the sub-3 million AED range.
Moreover, in October 2023, Dubai's real estate market experienced a remarkable surge in plot sales, witnessing a total of 617 plots changing hands with a combined value of AED 9.8 billion. This outstanding performance represents a staggering 99.7% increase in sales value compared to the same month in the previous year, signifying heightened investor confidence and a growing appetite for properties in the city's dynamic real estate sector.
PROPERTY PRICE AVERAGES
In the year leading up to October 2023, Dubai's average residential prices displayed significant growth, registering a notable 19.1% increase. Within this period, average apartment prices rose by 18.7%, while average villa prices recorded even more substantial growth, surging by 21.4%.
PRICE PER SQUARE FOOT CHANGES BY YEAR
In October 2023, the average price per square foot for apartments was AED1,364, representing a substantial increase compared to the previous year. Villa prices per square foot also experienced significant growth, reaching AED1,649. These notable price increases are indicative of the thriving real estate market in Dubai, attracting both local and international investors seeking opportunities for growth and value appreciation. As the city continues to evolve and expand, these figures reflect the attractiveness and stability of the Dubai property sector for potential investors and homeowners alike.
SALES VALUE FOR OCTOBER - BY YEAR
Real estate investments saw steady growth in 2023, with 81,669 investors registering 109,186 investments totaling AED 278.7 billion. This marked a 50.3 per cent increase in value, a 33.3 per cent rise in the number of investments, and a 37.4 percent increase in the number of investors, driven by the Dubai Land Department's strategic efforts to enhance the city's status as a global real estate investment destination.
DUBAI MEDIAN PRICES
In October 2023, Dubai's real estate market exhibited a range of median prices and price per square foot values across popular neighborhoods, reflecting diverse trends in the city's property landscape. Business Bay saw a median price of AED 1,265,000 and a competitive price per square foot at AED 1,630, with 509 transactions, indicating sustained interest in this dynamic area. Meanwhile, Emirates Living showcased a median price of AED 3,500,000, emphasizing its status as a high-end residential destination. In contrast, DSO offered more affordable options with a median price of AED 430,000 and a price per square foot of AED 664, making it an attractive choice for budget-conscious buyers. Additionally, Tilal Al Ghaf stood out with a median price of AED 4,200,000 and a price per square foot of AED 1,643, reflecting growing demand in this promising neighborhood. These figures demonstrate the diversity of Dubai's real estate market, catering to a wide range of preferences and budgets.
The rental market in Dubai experienced a moderation in growth rates since the beginning of the year. Average rents increased by 19.7 percent leading up to October 2023, slightly lower than the 20.6 percent growth recorded in September 2023.
MORTGAGE VALUES & TRANSACTIONS
In terms of mortgages, Dubai Marina had the highest number of transactions, while Jebel Ali First led in mortgage value.
MOST EXPENSIVE APARTMENTS SOLD
Palm Jumeirah tops the list with top first, third and fourth most expensive apartments sold.
MOST EXPENSIVE VILLAS SOLD
Tilal Al Ghaf takes the place of most expensive villa sold, and we had a premier entry in the new Palm Jabal Ali.
In conclusion, Dubai's real estate market in October 2023 demonstrated resilience and continued growth. The city's property sector experienced a surge in transaction values, marking a remarkable 15.7% increase compared to the same month the previous year, with a total of AED 29.4 billion in transactions. Notably, the existing property segment played a pivotal role in this success, with a significant 36.8% year-on-year increase in transactions, surpassing AED 25.7 billion in value. This reflects the sustained strength and vitality of the sector, with October 2023 recording the highest transaction value in the existing property segment for over a decade.
Moreover, mid-market properties continued to thrive, with a substantial portion of sales focused on properties below AED 2 million, attracting both residents and international investors seeking affordability and modern living options. Additionally, plot sales witnessed a remarkable surge, indicating investor confidence and growing demand in Dubai's property sector.
With trends such as stabilizing prices, a surge in demand for mid-market properties, and impressive transaction volumes; Dubai's real estate market remains dynamic and offers diverse opportunities for buyers and investors alike. The city's ability to adapt and flourish in changing market conditions underscores its position as a global real estate hub.
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*Data for Dubai areas median prices complied from DXBinteract.com.