Q3 - 2022 | Dubai Real Estate Market Report

 
  • Q3 - 2022 | Dubai Real Estate Market Report


    The uptrend of the Dubai property market has persisted with remarkable demand for luxury homes. Q3 2022 became the best performing quarter in the history of the Dubai real estate market, with over 25,500 transactions rising by 14% QoQ and 60% compared to Q3 2021. The property sales value reached AED 70B, an increase of 18% QoQ and 64.5% vs. Q3 2021.​

    Year to date, the property ​sales jumped by 60% to 68,500 transactions valued at around AED 184B, which is a spike of 77 % compared to last year. Also, the rental increased by 22% on average across the city.

    The sales increased for all property categories except for ready villas which tumbled by -7% compared to last year.

    This year, transactions valued above AED 100M increased by almost 49% vs. the record in 2014 and surged by 56% for properties worth more than AED 20M compared to the previous best performance in 2015.
     

    Property sales volume in the 3rd Quarter over years

     

    Monthly performance (year to date) 2022 vs. 2021.
     

    Mortgage

    The mortgage transactions tumbled by -5 to 5,650 transactions; however, the value surged by 12.4% to AED 31.5B vs. Q3-2021. Year to date, the mortgage slowed down by -12% in volume and -15% value.

    Ready vs. Off-plan

    The off-plan transactions composed​ 57% ​of the sales volume vs. 43% for ready properties. 

    All property types (Not including plots)

    Year to date, there is a clear shift from ready property sales to off-plan. 43% of the transactions in the first 9 months were off-plan whereas this percentage increased to 55% in 2022. 

    off-plan vs. ready Sales volume in first 9 months of 2022 vs. 2021

    Dubai Property Price Change

    Property prices per sq. ft in Dubai rose by 16% in Q3 compared to last year

     

    Property price change

    Price change per sq. ft

    ** Prices change across Dubai could be attributed to selling properties in different areas than the areas last year. You can visit our interactive reporting tools to get more precise information. 

    Transactions Breakdown

    Apartment sales were responsible for a vast majority of the transactions. 

    • Around 18,000  apartments were sold, up over 74% vs. Q3 2021, amounting to AED 33.3B. ​​
    • Around 5,600 villa transactions took place, down by 6% vs. Q3 2021, amounting to AED 19B.
    • Over 1,000 plots were sold, which is up 4% compared to Q3 2021, amounting to over AED 11B.
    • Over 851 commercial property transactions took place, up by 4% compared to Q3 2021, amounting to AED 16B.

    Top Performing Areas

    Damac properties spearheaded the villa sales across Dubai for the off-plan and ready villas; whereas, Business Bay is the hottest area and witnessed the highest demand for off-plan and ready apartments.
     

    Off-plan apartments

    • 📍 Business Bay: 1,873, worth AED 3B.
    • 📍 Al Merkadh: 1,012, worth AED 1.5B.
    • 📍 Arjan: 959, worth AED 589.7M.
    • 📍 Downtown Dubai: 828, worth AED 2.7B.
    • 📍  Dubai Marina: 789, worth AED 2.9B.
       

    Off-plan villas

    • 📍 Damac Lagoons: 1,442, worth AED 3.8B.
    • 📍 Dubai South: 471, worth AED 940M.
    • 📍 Jabal Ali First: 466, worth AED 1.7B.
    • 📍 The Valley: 268, worth AED 457.5M.
    • 📍 Tilal Al Ghaf: 145, worth AED 1.6B.

     

    Ready apartments

    • 📍 Business Bay: 997, worth AED 1.4B.
    • 📍 Dubai Marina: 945, worth AED 2.2B.
    • 📍 Jumeirah Village Circle: 665, worth AED 437M.
    • 📍 Burj Khalifa: 507, worth AED 1.4B.
    • 📍 International City Ph 1: 467, worth AED 147M.

    Ready villas

    • 📍 Damac Hills 2: 430, worth AED 544.2M.
    • 📍 Emirate Living: 167, worth AED 1B.
    • 📍 Nad Al Shiba First: 140, worth AED 708.2M.
    • 📍 Dubai Hills: 118, worth AED 829.7M.
    • 📍 Damac Hills: 117, worth AED 409.7M.

    Top Performing Projects
     

    Off-plan apartments

    • 📍 Peninsula Three: 518, worth AED 718.2M.
    • 📍 The St. Regis Residences, Downtown Dubai: 482, worth AED 1.7B.
    • 📍 Torino By Oro24: 449, worth AED 253.9M.
    • 📍 Address The Bay: 276, worth AED 1.4B.
    • 📍 Skyz By Danube: 271, worth AED 147.7M.

    Off-plan villas

    • 📍 Damac Lagoons - Malta (1): 412, worth AED 799.8M.
    • 📍 Damac Lagoons - Malta (2): 277, worth AED 550.4M.
    • 📍 The Pulse Beachfront 3: 271, worth AED 565.2M.
    • 📍 The Valley - Orania: 244, worth AED 420M.
    • 📍 Damac Lagoons - Portofino: 192, worth AED 439.5M.

    Ready apartments

    • 📍 Sls Dubai: 187, worth AED 329M.
    • 📍 Waves Tower: 103, worth AED 120.5M.
    • 📍 Paramount Tower Hotel & Residences: 82, worth AED 149.8M.
    • 📍 Elite Downtown Residence: 73, worth AED 129.5M.
    • 📍 Reva Residences: 66, worth AED 62.7M.

    Ready villas

    • 📍 Nad Al Sheba Gardens Phase 2: 120, worth AED 633.8M.
    • 📍 Damac Hills (2) - Aquilegia: 48, worth AED 58.9M.
    • 📍 Grand Views: 38, worth AED 210.1M.
    • 📍 Amaranta 2: 33, worth AED 56.4M.
    • 📍 Damac Hills (2) - Zinnia: 31, worth AED 41.4M.
       

    Top 5 projects with the most expensive sold apartments

    Q3 2022 witnessed the selling of the most expensive apartment and villa in the history of the Dubai real estate market for over AED 160M in The Royal Atlantis and villa for AED 302.5M on G frond. Remarkably, the luxury apartment prices exceed the luxury villas' value in many cases.

    1. Royal Atlantis Residences📍Palm Jumeirah - AED 163M
    2. Six Senses Residences 📍Palm Jumeirah - AED 92M
    3. One at Palm Jumeirah 📍Palm Jumeirah - AED 85M
    4. Dorchester Collection Dubai📍Business Bay - AED 45M
    5. AVA at Palm Jumeirah 📍Palm Jumeirah - AED 44M 

    Top projects with the most expensive sold villas

    1. Palm Jumeirah ( G Frond ) - AED 303M 
    2. Tilal Al Ghaf - AED 42M 
    3. Villa Amalfi - AED 36M 
    4. MBR City - AED 18M 
    5. Nad Al Shiba First - AED 16M 

    Key Takeaways

    • The property sales in Dubai is surging and hitting new all-time record highs.
    • Selling the most expensive villa and apartment in Dubai.
    • Q3 2022 became the most performing quarter ever in the history of the market.
    • A clear shift in the demand from the ready to off-plan properties.
    • DAMAC spearheaded the villa sales in Dubai.
    • The demand for ready villas went down by -7% vs last year, but increased by 10% QoQ

    For more information on the 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
    • 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 modify 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.


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