June - 2023 | Dubai Real Estate Market Report

 

Dubai's record-breaking property market shows no sign of slowing down through the summer of 2023. 

We have never witnessed a performance for the month of June like this, in terms of both sales transactions and value.

We saw nearly 10,500 property transactions, an increase of more than 18% compared to June 2022.

We also witnessed a total sales value of over AED 30B, an increase of nearly 35% compared to June 2022.

The announcement of Emaar’s $20B villa/mansion project, Emaar Oasis has gained the attention of investors worldwide.

 

Sales Volume - June Over The Years

All property types | off-plan and ready-made

Sales Value - June - Over The Years

All property types - off-plan and ready-made

 

Transactions Breakdown

June sales volume and value by property type

(Off-Plan & Ready Property Combined)

 

Mortgage Transactions and Value

We’ve seen an increase in mortgage transactions, with an 18% increase in the number of transactions compared to June 2022. The value of these transactions amounted to over AED 11B.

 

Price Changes

Compared to June 2022, property prices are on the rise for off-plan and ready apartments and villas. 

Most notably, 0ff-plan villa prices have risen by over 30%, up to AED 2.4M. This is in part due to more luxury villa communities being released, along with easy payment plans. 

For example, The Stellas by Murano in Al Furjan is a hot-selling villa community featuring private pools and elevators, starting at AED 7.2M, with an easy post-handover payment plan. 

 

Price Changes by Property Type

The median price per square foot is just over AED 1.4K, which is the highest on record for June.

Price-per-square-foot - June, Over the Years (AED) - Off-plan and ready - All property types

 

Off-Plan vs. Ready Property

There is continued interest in off-plan properties over ready property. 

Investors have shown a willingness to spend slightly more on off-plan properties, as the sales value for off-plan makes up for 60% of the overall sales value for June.

 

Top Performing Areas

Dubai Marina 

Dubai Marina is the top-selling area for both off-plan and ready properties. For ready properties, the Marina had a sales volume of 381 and a value of over AED 1B. For off-plan, the Marina had 635 transactions, at a value of nearly AED 3B

In total, the Dubai Marina had over 1,000 transactions, with a value of nearly AED 4B in the month of June.

Apartments

  • Off-Plan: Dubai Marina 635 transactions, worth AED 2.9B
  • Ready: Dubai Marina - 379 transactions, worth AED 1B

Villas

  • Off-Plan: Damac Lagoons - 168 transactions worth AED 451M
  • Ready: Damac Hills 2 - 81 transactions, worth AED 99M

Commercial

  • Off-Plan: MBR City - 33 transactions, worth AED 53M
  • Ready: Jumeirah Lake Towers - 92 transactions, worth AED 151M

 

Rent on the Rise

New rental contracts Downtown are currently AED 25K more than renewed contracts. 

Average Downtown yearly rental price

 

Property Sales Volume by Price Range

 

Properties that sold for up to AED 2M made for 60% of the total sales.

 

More than 10% of property transactions were for AED 5M+, indicating continued growth in Dubai’s booming luxury property market.

June  2023 Property Sales Volume by Price Range (off-plan/ready-made combined, all property types)

 

 

 

For the Love of Luxury

The increase in luxury transactions continues, with the highest property transaction value taking place at Bulgari Lighthouse for AED 112M

Bulgari Lighthouse - Island 2

 

Top five projects with the most expensive sold apartments:

  1. 📍Bulgari Lighthouse, Island 2 - AED 112M
  2. 📍Six Senses Residences - Palm Jumeiarah - AED 100.
  3. 📍Bluewaters Residences, Dubai Marina - AED 80M
  4. 📍Jumeirah Living, Marsa Al Arab - AED 77M
  5. 📍Como Residences, Palm Jumeirah - AED 66M

 

Top five areas with the most expensive sold villas:

    1. 📍Dubai Hills, Hills View Community - AED 82M

    2. Emirates Living - AED 80M

    3.📍Palm Jumeirah - AED 70M

    4.📍MBR City, District 1 - AED 55M

    5.📍Elysian Mansions, Tilal Al Ghaf - AED 37M

 

Key Takeaways

We witnessed Dubai’s strongest Month of June on record, in terms of both sales volume and value. The total sales value reached over 30B, an increase of nearly 35% compared to June - 2022.

 

  • Emaar’s new $20B launch, Emaar Oasis is gaining the attention of many investors around the world.
  • The Dubai Marina was the top-performing area for both off-plan and ready sales, with over 1,000 transactions, with a value of nearly AED 4B.
  • New rental contracts Downtown are AED 25K more than renewals.
  • Off-plan villa prices are up by 32% vs June 2022.
  • Over 10% of overall sales were valued at AED 5M+, indicating continued growth in Dubai’s booming luxury property market.

 

Overall the Dubai real estate market is expected to continue its record-breaking success throughout the summer.

For more information on the record-breaking state of Dubai’s property market, 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 nearest tenth for clarity.


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