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Q3 2023 - DUBAI MARKET REPORT

Investor appetite in Dubai’s real estate remains strong, showcasing persistent strength in the third quarter of 2023: with 31,399 property transactions, totaling AED 97.5 billion in sales. Despite the holiday months, sales transactions were 11,129 in July; 12,035 in August; and 8,235 in September. Compared to Q3 of the previous year, total transactions rose by 23.1%, and sales value increased by 40.4%


SALES VALUE AND TRANSACTIONS

Demand for property is surging, reaching unprecedented levels with sustained vigor.

MONTHLY PERFORMANCE AND SALES VOLUME

As 2023 unfolds, these numbers are expected to climb, fueled by interest from both local and global purchasers.


TOP PERFORMING DUBAI AREAS

Jumeirah Village Circle continues to be a top performer with a sales volume of 2,485 transactions in Q3 2023, closely followed by Business Bay with 2,386. Following top performers are MBR City with 2,186 transactions and Dubai Marina with 1,851 and Arjan with 1,536.


Q3 PRICE PER SQFT YEARLY COMPARISON The property market has continued to boom throughout 2023, seeing 'record levels' of demand in residential spaces. Currently at AED1,347 price per square foot.


AVERAGE APARTMENT PRICES

Average prices and price per square foot for the top areas in Dubai.

SOBHA HARTLAND AED 1,900,000 AED 1,850/SQFT

DOWNTOWN DUBAI AED 2,500,000 AED 2,549/SQFT

JUMEIRAH VILLAGE CIRCLE AED 769,860 AED 1,149/SQFT

JUMEIRAH LAKE TOWERS AED 1,510,000 AED 2,035/SQFT

BUSINESS BAY AED 1,500,000 AED 2,292/SQFT

ARJAN AED 761,650 AED 1,348/SQFT

DUBAI MARINA AED 2,800,000 AED 2,913/SQFT

DUBAI CREEK HARBOUR AED 2,349,888 AED 2,177/SQFT

MEYDAN ONE AED 616,320 AED 1,527/SQFT


AVERAGE VILLA PRICES Average prices and price per square foot for the top areas in Dubai.

DAMAC LAGOONS AED 2,845,000 AED 1,598/SQFT

DAMAC HILLS 2 AED 1,454,000 AED 1,074/SQFT

WADI AL SAFA 3 AED 7,606,800 AED 1,177/SQFT

MBR DISTRICT 1 AED 13,820,000 AED 1,615/SQFT

JABAL ALI FIRST AED 3,450,000 AED 923/SQFT

AL HEBIAH SIXTH AED 2,828,000 AED 1,244/SQFT

DUBAI SOUTH AED 2,895,000 AED 806/SQFT

ARABIAN RANCHES III AED 2,563,388 AED 1,532/SQFT

MUDON AED 2,856,500 AED 1,194/SQFT


SALES VOLUME BY PRICE RANGE

Driven by soaring rents in Dubai, the mid- market real estate segment is thriving as more residents prefer buying over renting. This trend is evident with 63% of Q3 2023 sales focused on properties below 3M. International investors too are seizing this opportunity, especially attracted to apartments for their affordability and the modern, cosmopolitan lifestyle they offer. The impressive 82% demand in the sub 5M range highlights the continued appeal of Dubai's mid-market properties.



QUARTER THREE SALES VOLUME ANNUALLY

Third quarter sales volume in Dubai's real estate market has generally showcased an upward trajectory. 2023 stands as a testament to this sustained growth, registering a remarkable year-on-year increase of 23.12%. With a total of 31.4k transactions, the city's property sector not only exemplifies resilience but also projects a positive and promising outlook for the future.


QUARTER THREE SALES VOLUME ANNUALLY

The landscape of Dubai's real estate in Q3 2023 experienced an exceptional surge in value. With a growth rate of 40.42% YoY, the market reached an unprecedented AED 97.5 billion, marking it as the highest valuation in the city's history. While the journey hasn't always been linear, with fluctuating growth patterns over the years, this particular year stands out, reflecting unparalleled strength and potential in Dubai's property sector.


WHERE WERE THE MOST EXPENSIVE APARTMENTS SOLD?

In Quarter 3 of 2023, the most expensive apartments were sold in various prestigious locations across Dubai. Topping the list was Jumeirah Marsa Al Arab with a remarkable sale at AED 420,000,000. Following closely were Six Senses Residences in Palm Jumeirah at AED 116,000,000 and Como Residences, also in Palm Jumeirah, with a sale at AED 112,000,000. Not far behind, Jumeirah Living in Marsa Al Arab saw apartments sold at AED 65,000,000, while One Za’abeel Tower in Zaabeel First achieved sales of AED 60,000,000.


WHERE WERE THE MOST EXPENSIVE APARTMENTS SOLD?

In Quarter 3 of 2023, the most expensive villas in Dubai found their new owners in some prestigious locations. Emirate Living led the list with a villa selling at a remarkable AED 209,000,000, followed closely by Palm Jumeirah with a villa sale at AED 202,000,000. Tilal Al Ghaf secured a significant spot with a villa sold at AED 100,000,000, and The World followed closely behind at AED 79,000,000. Additionally, MBR District 1 saw villas changing hands at AED 68,000,000, rounding out the list of top villa sales in the city.


MORTGAGE VALUES AND TRANSACTIONS

With the increasingly expensive rental landscape, tenants with the financial capacity are opting to invest in property, recognizing the financial advantages of ownership compared to renting a similar asset. This decision is driven by the desire to seize potential long-term value growth in a residential market that still maintains affordability on a global scale. In Quarter 3 of 2023, there were 8,611 mortgage transactions, marking a significant increase of 52.9% compared to Q3 2022. The total mortgage value reached 29.3 billion AED, showing a slight decrease of 6.5% compared to the same period in 2022.


FINAL THOUGHTS

In summary, Dubai's real estate market in the third quarter of 2023 demonstrated remarkable strength and resilience, with 31,399 property transactions totaling AED 97.5 billion in sales. This robust performance, despite the holiday season, reflects a significant increase of 23.1% in total transactions and a substantial 40.4% growth in sales value compared to the previous year.


The market continues to attract both local and global investors, driven by the potential for long-term value growth in a real estate landscape that remains competitive on a global scale. Notably, mid-market properties below AED 3 million garnered 63% of Q3 2023 sales, showcasing the sustained appeal of Dubai's real estate.


Looking ahead, the market's resilience, along with a surge in mortgage transactions, indicates a promising future for Dubai's property sector. With a year-on-year increase of 23.12% in sales volume and an unprecedented AED 97.5 billion in sales value, Dubai remains a thriving hub for real estate investment and homeownership.


*Data from DXBinteract.com, Q3 2023 Report.

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