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December 2022 - Dubai Property Market Update

 
  • December 2022 - Dubai Property Market Update

 

As 2022 has come to an end, the Dubai property market continued to show incredible growth, with yet another record-breaking month.

There were over 9.5K total property transactions, with a total sales volume of over over AED 26B, at an increase of nearly 70% compared to December of 2021, making this the best-performing month of December on record. 
 

Dubai Property Sales Volume in December over the years

Apartments continue to be the main interest of investors. There was an increase of nearly 80% in apartment sales compared to Dec-2021, with over 7,000 transactions being made. 
 

Mortgage Transactions and Value

There is a growing number of mortgage transactions, indicating a higher number of live-in buyers. A recent rise in the cost of rent is turning many renters into first-time home buyers. 

Transactions Breakdown

  • Over 7k apartments were sold, up 80% vs. Dec - 2021, amounting to over AED 14B. ​​
  • Over 1.8k villa transactions occurred, which is up by over 35% vs. Dec-2021, amounting to nearly AED 7B.
  • 400 plots were sold, at a 100% jump compared to Dec-2021, amounting to nearly AED 5B in sales value.
  • Over 260 commercial property transactions took place, which is a nearly 40% increase compared to Dec-2021, amounting to AED 440M.

 

Price Changes by Property Type

Type

Avg. AED Price 

vs. Dec 2014 %

vs. Dec 2021 %

Off-plan apartment

1,918

43%

18.4

Off-plan villa

1,176

76%

41%

Ready apartment

1,063

5%

-2%

Ready villa

874

-0%

14%

 

 

 

Off-plan vs Ready:

Off-plan transactions are far-outweighing ready property transactions, with over 60% of the overall transactions being off-plan. 

Off-plan vs. Ready Property (Plot transactions not considered)


 Top Performing Areas

MBR City took the lead for top-performing areas in December. Followed closely by the Dubai Marina and Business bay. 

Ready properties were mainly purchased in the Marina, while off-plan transactions were focused heavily in MBR City. 
 

Top performing areas - Off-plan and ready properties - all types.

 

Apartments

  • Off-Plan: MBR City - 885 transactions
  • Ready: Dubai Marina - 396 transactions

Villas

  • Off-Plan: Damac Lagoons - 452 transactions
  • Ready: Damac Hills 2 - 100 transactions

Commercial

  • Off-Plan: MBR City - 26 transactions
  • Ready: Business Bay - 75 transactions

Rent on the Rise

Average Downtown rental price
 

New Downtown rentals are on average AED 32K higher than renewed rentals. This trend in rising rent continues across Dubai.

Property Sales Volume by Price Range

Properties that sold for up to AED 3M made for over 60% of the total sales volume with nearly 6000 transactions.

Over 7% of the overall transactions were sold for AED 5M+, showing continued growth in Dubai’s luxury property market. 
 

 

Dec 2022 Property Sales Volume by Price Range (off-plan/ready-made combined, all property types)

 

For the Love of Luxury

The highest transaction value took place at Bulgari Lighthouse - Island 2, for AED 133M.

Bulgari Lighthouse - Island 2

Top five projects with the most expensive sold apartments:

  1. 📍Bulgari Lighthouse, Island 2 - AED 133M
  2. 📍Palm Beach Towers- 3, Palm Jumeirah - AED 61M
  3. 📍Orla By Omniyat, Palm Jumeirah - AED 61M
  4. 📍Private Residences Dubai, Dubai Water Canal - AED 58M
  5. 📍Mr. C Residences Jumeirah - Block B3, Jumeirah Second - AED 54M

Top five areas with the most expensive sold villas:

  1. 📍Palm Jumeirah - ​​AED 95M
  2. 📍Elysian Mansions, Tilal Al Ghaf - AED 45M
  3. 📍Jumeirah Golf Estates - Hillside, Jumeirah Golf - AED 44M
  4. 📍Emirate Living - AED 35M
  5. 📍Address Hillcrest, Dubai Hills - AED 25M

Key Takeaways

  • 2022 hosted the strongest month of December on record, in terms of both sales volume and value. The total sales value reached over AED 26B. Investors continue to show an undeniable trust in the Dubai property market. 
  • Apartments continue to be the main interest of investors. There was an increase of nearly 80% in apartment sales compared to Dec-2021, with over 7,000 transactions being made. 
  • New rental contracts Downtown are on average AED 32K higher than contract renewals. Rent across Dubai continues to rise, causing many renters to become first-time home buyers.
  • There is a continued surge in luxury transactions, with sales values on the rise. The most expensive sale was at Bulgari Lighthouse, Island 2 for AED 133M.
  • For more information on the record-breaking state of Dubai’s property market and trends, have a quick look at our Interactive Reporting Tool. 

*Notes and Disclaimers:

  • Prepared by Fateh Al-Msaddi&Steven Worlow.
  • In this report, “transaction” refers to the actual property sales, which do not include mortgage or gift transactions.
  • Off-plan property could be sold by a developer or individual. 
  • Some villa transactions were registered as plots in The Dubai Land Department, so we modified what we notice to be villas with a high level of accuracy.
  • Plot transactions are excluded when it comes to comparing off-plan vs. ready property sales.
  • We are not responsible for any investment decision made based on the information in this report.
  • Figures have been rounded to the neared tenth for clarity.


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