Q4 2023 Dubai Real Estate Market
The Dubai Real Estate Market Report for the 4th Quarter of 2023 presents a comprehensive analysis of key indicators shaping the real estate landscape in Dubai. With a focus on sales volume, sales value, and price changes across various areas, this report delves into the dynamics that influenced Dubai’s real estate market during this period.
The Real Estate Market witnessed remarkable dynamics in the 4th Quarter of 2023, reflecting robust growth and unprecedented achievements in various segments. As the market continues to capture global attention, questions about sustainability, growth trajectories, and emerging trends come to the forefront. In hopes that offering this information grants value for stakeholders, investors, and enthusiasts alike:
Total Sales and Market Trends
Total real estate sales soared to an impressive 122.3B AED, marking a substantial 50.8% increase compared to Q4 2022. This includes sales in commercial properties and plots of land. Several key market trends shaped this outstanding performance, providing valuable insights for stakeholders
Residential Market Insights
Apartment sales volume experienced a notable 21.6% increase, reaching a total value of 51B AED. The market saw a divergence in pricing trends between off-plan and ready apartments. Off-plan prices exhibited a 9.8% drop to 1.4M AED, while ready apartments recorded a 2.4% increase, now standing at 1M AED. The most expensive transactions occurred at Como Residences and Ava on Palm Jumeirah.
Villa sales volume rose by 8.5%, culminating in total sales of 34.1B AED. Off-plan villas witnessed a significant 32% price increase, reaching 3.4M AED. In contrast, ready villas experienced a 15.6% price reduction, now averaging 2.3M AED. The most notable sale was a villa on Palm Jumeirah, fetching a staggering 200M AED.
Top Performing Areas
The top five areas in terms of sales volume were Jumierah Village Circle, Al Merkadh, Business Bay, Dubai Marina, and Dubai Hills Estates. In contrast, the top areas by sales value included Palm Jebel Ali, Dubai Marina, Business Bay, Downtown Dubai, and Palm Jumeirah.
The average property price in Dubai during Q4 2023 stood at 1.435 AED per square foot, reflecting the overall market valuation.
Analyzing market segmentation based on sales volume reveals a distribution as follows: 33% of all sales were below 1M AED, 28% between 1M and 2M AED, 16% between 2M and 3M AED, 12% between 3M and 5M AED, and 11% above 5M AED. The comparison between off-plan and ready properties showed that 59% of sales volume and 69% of sales value were attributed to off-plan properties.
The cumulative performance in 2023 exhibited robust growth, with total property sales volume reaching 35.4K, a substantial 23.11% YoY increase. The total property sales value surged to 122.3B AED, reflecting a remarkable 50.84% YoY growth.
Mortgage transactions in Q4 2023 witnessed notable activity, with a total of 8,209 transactions, marking a 15.8% increase compared to the same period in 2022. However, the total value of mortgage transactions decreased by 40.5% to 31.3B AED.
In conclusion, the Dubai Real Estate Market’s Q4 2023 report reflects a market characterized by resilience, growth, and evolving trends. The surge in total sales value to 122.3B AED, a 50.8% YoY increase, underscores the robust performance of the real estate sector. Notable trends, such as the rise in transparency, pricing differentials between off-plan and ready properties, and the impact of key areas on sales volume and value, offer valuable insights for both local and international stakeholders. As Dubai’s real estate market continues to shape its future, this report serves as a vital resource for those navigating the dynamic landscape of one of the world’s most prominent real estate markets.
*Data obtained from www.dxbinteract.com