Q1 - 2023 | Dubai Real Estate Market Report

 

As Q1 comes to an end, Dubai continues its record-breaking growth in property transactions. 

Q1 was the best-performing quarter in the history of the Dubai property market.

There were nearly 31K total property transactions, an increase of over 50% compared to Q1 2022. 

We saw a total sales value of nearly AED 89B, an increase of over 60% compared to Q1 2022. 

Q1 Sales Volume - Q1 Over The Years

 

Q1 Sales Value - Q1 Over The Years


(Off-Plan & Ready Property Combined) 

Transactions Breakdown

 

Q1 Sales volume and value by property type
 

Apartments continue to be the main interest of investors. The number of apartment sales compared to Q1 of 2022 is up by over 72%, with nearly 23k transactions.  

45B was spent on Dubai apartments during Q1, which is more than double any other kind of property.
 

Mortgage Transactions and Value

We’ve seen a surge in mortgage transactions, with a 63% increase in the number of transactions compared to Q1 2022. The value of these transactions is up by over 31% compared to Q1 - 2022, indicating a growing number of live-in buyers.
 

Price Changes

Price Changes by Property Type

Type

Avg. AED Price 

vs. Q1 2014 %

vs. Q1 2022 %

Off-plan apartment

1.29M

21%

10.5%

Off-plan villa

2.2M

-27%

-32%

Ready apartment

1.04M

-0%

-5%

Ready villa

2.8M

-16%

3.7%

 

The average price per square foot is now up to AED 1.285K, which is the highest on record.

Price Per Square Foot - Q1 Over the Years (AED)

Rental Price Changes

  • Apartments: Median rent is now AED 50K, which is up by 16% vs. Q1, 2022.
  • Villas: Median rent is now AED 140K, which is up by 22% vs. Q1, 2022.

 

Off-Plan vs. Ready Properties
 

Off-plan transactions are beginning to heavily outweigh ready property transactions, with 60% of the overall transactions being off-plan. 

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

Top Performing Areas in Q1 - 2023 

Jumeirah Village Circle has overtaken Business Bay in off- plan sales, with a total sales volume of 2,396, at a value of AED 1.8B 

Business Bay and Dubai Marina are neck and neck for ready property transactions.

Business Bay is the close winner in terms of sales volume, but The Dubai Marina overtook Business Bay’s total sales value by over AED 1B. 

Business Bay: 1,229 transactions, worth AED 2.1B

Dubai Marina: 1,224 transactions, worth AED 3.1B
 

Top Performers - Off-plan and ready, all property types

Off-plan and ready properties - all types.

Apartments

  • Off-Plan: Jumeirah Village Circle - 2,361 transactions, worth AED 1.8B
  • Ready: Dubai Marina - 1,212 transactions, worth AED 3B

Villas

Commercial

  • Off-Plan: Al Merkadh - 42 transactions, worth AED 107M
  • Ready: Business Bay - 357 transactions, worth AED 610M 

 

Average Downtown rental price
 

Completed Projects Vs. Launched Projects | Q1 2023

  • 33 Projects were launched in Q1, with 9,666 units.
  • 30 projects were completed in Q1, with over 9,600 units handed over.

 

Property Sales Volume by Price Range

Properties that sold for up to AED 2M made for over 60% of the total sales, with nearly 20K transactions taking place in Q1. 

More than 2,700 transactions took place for AED 5M+, indicating continued growth in Dubai’s luxury property market. 
 

 

Q1 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 transaction value taking place at Bulgari Lighthouse, Island 2 for AED 410M.

Bulgari Lighthouse

Top five projects with the most expensive sold apartments:

  1. 📍Bulgari Lighthouse, Island 2 - AED 410M
  2. 📍Aire Dubai, Al Wasl - AED 119M
  3. 📍One Canal, Dubai Water Canal - AED 73M
  4. 📍ORLA by Omniyat - AED 65M
  5. 📍BV Residences 4 - Jumeirah Bay - AED 65M

 

Top five areas with the most expensive sold villas:

  1. 📍Club Villas - Palm Jumeirah - ​​AED 183M
  2. 📍Emirates Living - AED 70M
  3. 📍Dubai Hills - AED 47M
  4. 📍Tilal Al Ghaf - AED 45M
  5. 📍MBR District 1 - AED 31M

 

Key Takeaways

We witnessed Dubai’s best-performing quarter on record, in terms of both sales volume and value. The total sales value reached nearly 89B. Investors continue to show an undeniable trust in the Dubai property market.

  • Apartments continue to be the main interest of investors. Off-plan and ready transactions combined made for more than 2/3 of the overall property transactions.
  • New rental contracts Downtown are AED 25K higher than contract renewals. Rent across Dubai continues to rise, causing many renters to become first-time home buyers.
  • Bulgari Lighthouse has held the highest-priced property sales for 3 months in a row, with one apartment selling for AED 410M.
  • Damac Lagoons continues to spearhead off-plan villa sales.
  • The Dubai Marina and Business Bay are tied in sales volume, but Dubai Marina's sales value was AED 1B higher than Business Bay.

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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