The diversity of properties, and interest from investors residing in all parts of the world has only increased in Q2, we are seeing more countries in Europe, the East and US invest in the Emirate. There was a total of 26,937 residential transactions in Q2 of 2023 with a fairly even split between off plan and secondary sales, 12,993 re sales and 13,944 off plan sales.
Being an initial purchaser (off plan direct from Developer) is still showing to be the sure way to get higher appreciation returns. Many of the recent launches have been projects in prime locations. Developers are building more innovative, niche properties to accommodate the demand of international purchasers, with more luxury finishes, facilities, thought of lifestyles, larger sized properties but are still fair priced with room for investors to see appreciation and high returns.
For example: A recent launch by The Habtoor Group in the iconic Al Habtoor City, an already high demand community with 5* hotels, numerous facilities, including a boulevard of shops, cafes and a world-renowned theatre, Al Habtoor Tower is a sustainably constructed property, built with the world’s leading construction materials and contractor and is the largest residential tower to be built in the world (by sq. ft) but architected to still give privacy.
A one bedroom apartment with sea and Burj Al Arab view on the 45th floor located on the only freehold plot on Sheikh Zayed Road is priced at AED2,372,449, the initial down payment of only 10% from booking and a further 10% 30 days thereafter, which equates too AED474,489. ($129,182)
A further 40% is linked to construction until completion, December 2026, which is estimated to equal to as little as 1% (AED23,724/$6,459) per month payable 5% each milestone. The remaining 40% will be due on completion, which with current data is likely to be close to the appreciation gained during construction.
Upon completion, one option would be to finance the unit and use the money for further investment to grow your portfolio of real estate in Dubai, which benefits from a tax-free income and an option to get residency from property ownership for you and your family.
No one can see into the future but the Government has proven time and time again that they do what they announce. The 2040 vision is to improve the already high sought after destination, by providing more public green spaces, population of over 6m and multiple streams of diverse income opportunities for the Emirate. Sustainability is high on the government agenda and this is being shown in not only construction of property but in supply of utilities, and laws for waste management and water usage, along with safety, lifestyle, central global location Dubai seems to not see any slowing down.
The market in numbers:
Total Sales Transactions, Total Value, Average Sale, Price per sq ft – Residential
Q2 – 2021 – 13,361 – AED28,878,079,491 – AED2,161,371 – AED1,396
Q2 – 2022 – 19,739 – AED47,108,432,750 – AED2,386,566 – AED1,143
Q2 – 2023 – 26,937 – AED68,810,868,453 – AED2,554,511 – AED1,644
The average sale price has increase from 2021 – 2023, in the same period by 18.2%, the number of transactions have increase in the same period by 102%.
Resale Market Q2 2023
Total Secondary Transactions (ready properties)
Apartments
12,993 transactions made up of 9,221 apartment sales with an average price of AED1,632,044, average price per sq ft AED1,343, with one bedroom apartments taking a 32.1% major share of the market. 17.7% of transactions priced between AED2,000,000-3,000,000.
Share of transactions by Area: Dubai Marina 10%, JVC 9%, Business Bay 8.2%, Downtown 7.9%, International City 4.9%.
Townhouses
2,032 transactions were townhouses with an average price of AED2,532,498, average price per sq ft AED1,047, with 3-bedroom townhouses taken a 45% share of sale. 46.9% of sales were between AED2,000,000-3,000,000.
Share of transactions by Area: Damac Hills 2 – 12.4%, Al Furjan 6.7% and Emirates Living 6.7%.
Villas
1,740 transactions were villas with an average price of AED8,573,808, the average built up area size was 5,029 sq ft, plot size 7,857 sq ft. 4 bedroom villas took a 35.6% share of sales and 5 bedrooms villas 24.9% of sales.
9.9% of sales were in Damac Hills, 8.9% Mohammed Bin Rashid City, 7% in Al Furjan, 6.9% in Tilal Al Ghaf and 5.5% in Jumeirah Golf Estates.
Off Plan Market Q2 2023
It is important to note it is hard to judge the off plan sales, as we only see visibility once the properties have been registered with Oqood which could be up to 2 months after the actual sale. This may throw off some of the figures but by reporting a quarter review we should see the data more accurate than a monthly report. For example: Creek Waters in Creek Habour launched 31st March and registrations are showing 26th June 2023.
This data includes re sale of off plan properties still registered on Oqood.
Apartments
12,313 registrations were apartments, with an average price of AED2,360,731 and an average price per sq ft of AED1,999. 46.3% of properties were 1 bedroom apartments and 25.1% of 2 bedroom apartments.
Jumeriah Village Circle (JVC) had 16.1% of the market, followed by Dubai Creek Habour 9.9%, Dubai Hills Estate 9.1% and 6.8% in Arjan.
Townhouses
1,484 townhouses were registered, with an average price of AED2,450,001, 3 bedroom townhouses taking 57.7% share and 4 bedrooms with a 37.5% share. 41.8% of sales were between AED2,000,000-3,000,000.
Arabian Ranches 3 – 25.1%, Town Square 17.1%, The Valley 11.1%, Mudon 9% and Mohammed Bin Rashid City 8.9%.
Villas
147 transactions were villas with an average price of AED6,760,854, 43.4% were 3 bedroom villas, 17.7% 4 bedroom and 32.7% 5 bedroom.
Mudon 29.9%, Dubai South 29.9%, Nad Al Sheba 22.5% and Al Barari 6.1%.
Demand/Supply
Apartments
The highest listings were in Downtown 11.3%, Business Bay 10.3%, JVC 9.4%, Dubai Marina 7.8%.
Top searched areas: Dubai Marina 12.7%, Downtown 10.8%, Business Bay 7.9%, JVC 7.7% and Palm Jumeirah 6.8%.
Keywords: Vacant, Furnished, Payment Plan, Sea View, Rented, Beach, Metro.
Townhouses/Villas
The highest listings were in Mohammed Bin Rashid City 7.7%, Tilal Al Ghaf 7%, Arabian Ranches 3 – 6.8%, Dubai Land 5.5%, Akoya 5.3%.
Top searched areas: Dubai Hills Estate 7.2%, Palm Jumeirah 5.8%, Arabian Ranches 5.4%, Damac Hills (Akoya) 4.7%, Al Furjan 4.2%.
Keywords: Vacant, Upgraded, Corner, Single Row, Pool, Payment Plan, Closed Kitchen.
If you are interest in any of the properties mentioned please do not hesitate to contact me, here are some links that may be of interest.