Dubai Real Estate Market Report — February, 2023

Dubai Real Estate Market Report – February 2023

February 2023 broke records on the widest measure: 9,424 transactions worth AED 27.15 billion traded across all property types, both series highs for the all-property total. With plots and buildings set aside, the Apartment, Villa and Commercial core on its own made up 9,153 deals, up 53% on February 2022, and AED 22.53 billion of value, up 81%.

The month was, above all, a volume story. Buyers turned out in strength, apartments spearheaded the run, and although villa pricing edged up, apartment values per foot were all but unchanged year on year — so the huge rise in transaction value owed far more to the sheer count of deals than to any broad repricing.

Headline figures

Year-on-year performance by category

Apartments drove the expansion. The segment recorded 6,781 transactions, up 70% and a full 2,797 deals more than the year-earlier February — the busiest February in the 10-year series. Value more than doubled to AED 13.22 billion (+102%). Even so, the median price stayed at AED 1,334/sqft, in fact down 1% on the year (yet still 12% above the 2014 base), and the median ticket was unchanged at AED 1,024,048. Put simply, apartments expanded on count rather than price.

Villas rose on both fronts. Volume grew 20% to 2,115 deals — likewise a series-high February — and value picked up 61% to AED 8.82 billion. In contrast to apartments, villa pricing shifted markedly: the median hit AED 1,088/sqft, up 28% and the highest February price per square foot in the 10-year series, with the median ticket up 31% to AED 2,550,000.

Commercial advanced more modestly. Its 257 deals were up only 4% — the highest February volume since 2015 — with value up 13% to AED 495.63 million and the median at AED 1,000/sqft, up 14% and the strongest February reading since 2017. Ranked by value the categories ran Apartment, Villa, Plot, then Commercial; on ticket size, though, Plots stood apart, carrying the largest median ticket of any category at AED 6,101,280.

Every category, including plots and buildings

Plots formed a smaller yet heavyweight portion of the month: 271 deals worth AED 4.62 billion, at a median of only AED 595/sqft but a median ticket of AED 6,101,280 — the biggest of any category, a reflection of the size of land parcels next to individual built units.

Primary versus resale

The market tilted towards new supply. Primary sales represented 59% of both volume and value — 5,385 deals worth AED 13.34 billion — while resale took the remaining 41%, or 3,768 deals worth AED 9.19 billion.

Where the activity was

By value, Marsa Dubai led at AED 2.65 billion, trailed by Palm Jumeirah (AED 1.55 billion), Al Hebiah Fifth (AED 1.35 billion), Business Bay (AED 1.32 billion) and Al Hebiah Fourth (AED 1.18 billion). By count, Al Barsha South Fourth headed the table with 997 deals, ahead of Business Bay (781), Marsa Dubai (744), Wadi Al Safa 5 (512) and Al Hebiah Fifth (443). Three areas — Marsa Dubai, Al Hebiah Fifth and Business Bay — showed up on both the value and volume leaderboards, pairing large ticket sizes with real transaction depth.

Rental market

Rents rose in every segment. New apartment leases held a median of AED 51,000, up 18.60%, with rent per square foot up 26.42%; new villa leases reached AED 140,000 (+16.67%) and new commercial leases AED 87,180 (+3.84%). Contract counts were more mixed: new apartment registrations dropped 6.52% even as renewals climbed 23.45% to 10,865, while new villa and commercial contract volumes each eased year on year.

Supply

Handovers outran new launches. Developers delivered 5,147 units across 10 projects while launching 2,713 units over 14 — a net 2,434 more units delivered than launched, relieving the existing pipeline even as new inventory reached the market.

Launched

• Signature Mansions – Me'Aisem First (Signature Developers), 18 units
• Al Helal Al Zahaby 3 – Warsan Fourth (Al Helal Al Zahaby), 67 units
• Luce – Palm Jumeirah (Taraf Development), 38 units
• Palace Residences - North – Dubai Creek Harbour (Emaar), 358 units
• Damac Hills (2) - Camelia – Madinat Hind 4 (Damac), 620 units
• Ellington House Ii – Hadaeq Sheikh Mohammed Bin Rashid (Ellington), 166 units
• Samana Mykonos – Al Hebiah Second (Samana), 198 units
• Time 2 – Wadi Al Safa 5 (Time Properties), 304 units
• 399 Hills Park B – Hadaeq Sheikh Mohammed Bin Rashid (National Properties), 200 units
• Sabah Dubai Skyline – Al Safouh First (Rsg International), 123 units
• Bali Residences – Al Barsha South Fifth (Bali Builders), 121 units
• Mas Tower – Nadd Hessa (Revi), 112 units
• Exquisite Living Residences – Downtown Dubai (Zuari Infraworld S J M), 234 units
• The Diplomat Residences – Al Yelayiss 2 (Nshama), 154 units

Delivered

• Myka Residence – Me'Aisem First (Myka Luxe), 120 units
• Arabian Ranches Iii - Joy – Wadi Al Safa 5 (Emaar), 486 units
• Breeze At Creek Beach Building 3 – Dubai Creek Harbour (Emaar), 214 units
• Chaimaa Avenue 2 – Al Barsha South Fourth (Deva), 93 units
• Seven Hotel & Apartments The Palm - B – Palm Jumeirah (Seven Tides), 1,200 units
• The Royal Atlantis Resort & Residences – Palm Jumeirah (Difc Development Authority), 609 units
• Luma21 – Al Barsha South Fourth (Townx), 256 units
• Marina Vista Tower 2 – Marsa Dubai (Emaar), 634 units
• Damac Hills (2) - Amargo – Madinat Hind 4 (Damac), 398 units
• Sobha Reserve – Wadi Al Safa 2 (Sobha), 1,137 units

Most expensive sales

Top apartment sales

1. AED 23,000,000 – Serenia Living - Tower 3, Palm Jumeirah
2. AED 17,500,000 – Bluewaters Residences 1, Marsa Dubai
3. AED 15,164,000 – Bluewaters Bay - Building 2, Marsa Dubai
4. AED 14,152,707 – Marina Residences 3, Palm Jumeirah
5. AED 14,000,000 – Kempinski Residences, Palm Jumeirah

Top villa sales

1. AED 183,000,000 – Palm Jumeirah
2. AED 112,000,000 – Jumeirah Bay Islands
3. AED 70,000,000 – Emirates Living
4. AED 54,000,000 – Hadaeq Sheikh Mohammed Bin Rashid
5. AED 45,326,000 – Al Hebiah Fourth

Notes on methodology

Scope. The headline totals and category table take in every property type held in the data, Plot and Building included. The primary/resale breakdown, leading-area rankings and the year-on-year series relate to Apartment, Villa and Commercial alone, so those numbers are intentionally smaller than the headline and should not be summed across the sections.

Rounding. The headline totals are the definitive rounded figures. Breakdowns at category level are rounded on their own and may not add up precisely to the headline.

Definitions. Price points are medians rather than averages. Year-on-year sets the period against the same period a year before. All values are in AED and areas in square feet.