Q3 – 2023

With Dubai’s unparalleled payment plans, fair valued pricing (UBS Report), attractive lifestyle, and ease of residency, the returns on equity in property purchases are still consistent, superseding most expectations.  

The end user market has grown substantially, with mid to long-term residents deciding to officially make Dubai their base purchasing, as opposed to leasing, which is excelling villa prices due to the lack of vacant units. Mortgage rate hikes are not making a real difference as rents have increased in most communities by 20% or more due to the same reason, which equals out the benefit of buying.

Change in Residential Sales Price from Q2 2023 to Q3 2023

Total Sales Transactions, Total Value, Average Sale, Price per sq ft – Residential – off plan and secondary combined.       

Q3 – 2021 – 13,977 – AED32,264,463,679 – AED2,308,397 – AED1,244

Q3 – 2022 – 22,912 – AED53,245,719,942 – AED2,323,923 – AED1,428

Q3 – 2023 – 28,025 – AED78,635,174,709 – AED2,805,894 – AED1,609

The average sale price has increased from 2021 – 2023, in the same period by 21.5%, and the number of transactions has increased in the same period by 100.5%.

Total Secondary Transactions (ready properties/resale)

Apartments

7,557 apartments were sold with an average price of AED1,506,631 and, an average price per sq ft AED1,299 on an average sq ft of 1,066, with one-bedroom apartments taking a 42.2% major share of the market. 14.7% of transactions priced between AED800,000-AED1,000,000.

Share of transactions by Area: (highest to lowest volume) JVC 9.7%, Dubai Marina 9%, Business Bay 8.1%, International City 6.8%, Downtown 6.6%.

Townhouses

1,383 transactions were townhouses with an average price of AED2,787,920, the average price per sq ft AED1,112 with 3-bedroom townhouses taking a 54% share of sales, 29.7% of sales were between AED800,000-AED1,000,000.       

Share of transactions by Area: Damac Lagoons (resale off plan) – 18.2%, Emirates Living 8.6%, Al Furjan 8.1%, Reem 6.9%, Dubai South 6.0%.

Villas

1,355 transactions were villas with an average price of AED9,097,298, the average built-up area size was 4,899 sq ft, and plot size 7,350 sq ft.  4 bedroom villas took the majority of sales, 45.3%.  Sold prices of AED3,200,000 and above were 89% of all transactions.

Mohammed Bin Rashid City 13.3%, Al Furjan 9.6%, Damac Hills 6.7%, Jumeirah Park 5.5%, Emirates Living 5.3%,  JVT 4.9% and Tilal Al Ghaf 4.1%.

Off-Plan Market (Initial Sales/Registrations by Developer)

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.

Apartments

10,224 registrations were apartments, with an average price of AED2,292,453 and an average price per sq ft of AED2,009, an average sq ft built-up area of 975 sq ft.  22.3% of apartments were studios, 42.8% of were 1-bedroom apartments, 25.4% 2-bedroom apartments.  17.1% of properties registered were in the AED1-1.5m bracket, 18.5% between AED2-3,000,000.

Jumeirah Village Triangle 12.6%, Arjan 11.2%, Business Bay 10.2%, Sobha Hartland 10.2%, Jumeirah Lake Towers 7.3%, Dubai Creek Harbour 5.6%.

Townhouses

1,394 townhouses were registered, with an average price of AED2,948,456 with an average of 2,714 sq ft built up area, 3 bedroom townhouse sales were 42.8% share and 4 bedrooms with a 41.6% share.  46.5% of sales were between AED3,000,000-5,000,000.

The Valley 35%, Mudon 25.6%, Arabian Ranches 3 – 17.1%, Bianca 7.3%, MBRC 4.2%.

Villas

212 transactions were villas with an average price of AED8,014,453, 4,263 sq ft average built-up area., 29.2% were 3 bedroom villas, 31.1% 4 bedroom and 31.6% 5 bedroom.  54.4% of villas were sold above AED3,200,000.

Dubai South 61.8%, Arabian Ranches 3 – 24.1%, Nad Al Sheba 4.3%, Palm Jumeirah 2.8%.

Supply Increase

In line with the 2040 vision of increasing population, green spaces and sustainability across the region developers have been launching some unprecedented projects this year with amazing facilities, lifestyle, and end-user mindset at the forefront.

2024 – 90,459 properties will be completed, circa 60% share of which will be apartments, mainly in Business Bay, JVC, MBRC, and Dubai Sports City.

2025 – 45,525 properties are expected to be handed over, 15,000 of which will be villas and townhouses across Al Furjan, Arabian Ranches 3, Damac Lagoons, Jebal Ali, Mudon.

2026 – 40,046 properties are expected, 36,000 apartments mainly in Arjan, Business Bay, City Walk, Dubai Creek Harbour – Damac Lagoons and Dubai Hills will have the majority share of villas handing over.

2027 – 10,049 properties are expected, 8,000 apartments across Business Bay, Creek Harbour, Sobha Hartland II.

2028 – 2,061 properties are expected, all apartments, in Dubai Harbour (Beachfront), Maritime City, and Al Sufouh,

Demand

Apartments

According to datafinder.com, Dubai Marina in 2023 has been the most searched area with a 12.4% share of searches, Downtown 10.9%, JVC 7.9%, Business Bay 7.9%, and Palm 6.5%. 

The most searched keywords for apartments, in order, are – Vacant, Payment Plan, Furnished, Rented, Sea View, Metro, High Floor, Beach, Brand New

Townhouses/Villas

Dubai Hills Estate 7.3% share of searches, Palm Jumeirah 5.8%, Arabian Ranches 5.3%, Damac Hills (Akoya by Damac) 4.6%, Al Furjan 4.3%, Mohammed Bin Rashid City 4.2%.

The most searched keywords for townhouses and villas, in order, are – Corner, Vacant, Upgraded, Pool, Beach, Single Row, Payment Plan, and Closed Kitchen.

data compiled by Laura Adams using propertymonitor and datafinder

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