Dubai Real Estate Market Report — June, 2023

Dubai Real Estate Market Report – June 2023

Dubai's property market ended June 2023 at a record high, as 10,536 transactions worth AED 30.58 billion traded across every property type. On the core apartment, villa and commercial basis, the 10,245 deals logged stood 23% above June 2022, while their combined value of AED 26.28 billion rose 37% year on year.

The headline median came to rest at AED 1,417 per square foot. Both the transaction count and the deal value set the strongest June the market has recorded, yet the growth was anything but evenly spread: apartments carried the load while villa and commercial volumes went the other way.

Headline figures

Year-on-year performance by category

Apartments were the engine. Volume hit 8,319 deals, up 45% year on year and the highest June total in the ten-year series - about 2,593 more sales than a year before. Value expanded even quicker, leaping 64% to AED 17.77 billion. Pricing firmed rather than raced ahead: the median stayed at AED 1,578 per square foot, a 6% yearly gain that also marks the segment's richest June reading on record and sits 29% over the 2014 base. The median apartment ticket nudged 6% higher to AED 1,300,000, so most of the value gain flowed from closing far more deals rather than paying dramatically more per unit.

Villas invert the volume story while sending the same price signal. Transactions dropped 28% to 1,664, yet the segment's value hardly shifted, inching 1% higher to AED 8.04 billion - fewer but dearer deals. Villa pricing rose 14% to AED 1,094 per square foot, its highest June level in the series and 41% above 2014, while the median villa ticket jumped 44% to AED 2,873,581 as buying tilted toward the top end.

Commercial was the slenderest slice and the quietest, its 262 deals down 12% year on year - the lowest June count since 2020. Even so, value climbed 5% to AED 460.46 million, and the segment made the sharpest price move of all: AED 1,166 per square foot, up 38% on the year and its strongest June per-foot reading on record. With the median commercial ticket up 45% to AED 1,129,079, the shared thread across all three categories is unmistakable - each set a fresh June high for price per square foot, even though only apartments added volume.

Every category, including plots and buildings

Land stayed a high-ticket, low-volume corner of the market. A mere 291 plot transactions produced AED 4.30 billion in value, on a median ticket of AED 5,174,400 - comfortably the biggest of any category - against a modest AED 405 per square foot that reflects the raw-land basis.

Primary versus resale

Off-plan and completed stock divided the month almost evenly. Primary sales led with 5,513 deals worth AED 14.10 billion, claiming 54% of both volume and value, while resale made up the remaining 4,732 transactions and AED 12.18 billion - 46% on each measure. That the volume and value shares match exactly suggests broadly similar ticket sizes across the two channels.

Where the activity was

Marsa Dubai (Dubai Marina) dominated on both counts, leading by value at AED 4.15 billion and by volume at 1,064 transactions. Palm Jumeirah placed second by value at AED 2.60 billion, ahead of Downtown Dubai (AED 1.77 billion), Hadaeq Sheikh Mohammed Bin Rashid (AED 1.43 billion) and Dubai Creek Harbour (AED 1.25 billion). The busiest districts by deal count lay further out, with Al Barsha South Fourth (890), Al Thanyah Fifth (702) and Al Merkadh (642) all following Marsa Dubai on the volume table.

Rental market

The rental market mirrored the sales pattern: fewer new leases but markedly higher rents. New apartment contracts dropped 20.16% to 8,544 even as the median new-lease rent rose 17.02% to AED 55,000; renewals held firmer, with 10,205 contracts up 7.20% and their median rent up 11.11% to AED 50,000. New villa leases posted the steepest rent jump - up 30.08% to a median AED 160,000 - despite a 26.99% fall in new contracts to 1,185. Commercial did likewise, with new-lease rents up 22.55% to AED 100,000 on 1,529 contracts. Everywhere, renewing tenants paid less than newcomers, a gap that rewards staying put.

Supply

The development pipeline widened once more. Developers launched 10,188 units across 29 projects over the month while only 869 units across 5 projects were handed over - about 11.7 units launched for each one delivered, a net addition of 9,319 more units launched than completed. The pronounced skew toward new launches signals developer confidence while keeping the forward pipeline well ahead of current completions.

Launched

• The Valley - Rivana – Al Yufrah 1 (Emaar), 486 units
• West Five Businessbay Residence – Business Bay (Mag), 144 units
• Azizi Vista – Al Hebiah Second (Azizi), 166 units
• Naya 3 – Al Merkadh (Meydan), 452 units
• Greenside Residence-Tower C – Hadaeq Sheikh Mohammed Bin Rashid (Emaar), 490 units
• Mudon Al Ranim 7 – Al Hebiah Sixth (Dubai Properties), 248 units
• Samana Mykonos Signature – Al Barsha South 3 (Samana), 300 units
• Binghatti House – Al Barsha South Fourth (Binghatti), 294 units
• Eywa – Business Bay (R.Evolution), 53 units
• Azizi Riviera 59 – Al Merkadh (Azizi), 123 units
• Kyoto By Oro24 – Al Barsha South 3 (Jumeirah Luxury Living), 708 units
• Ocean House – Palm Jumeirah (Northacre Ellington Development), 95 units
• Mohammed Bin Rashid Al Maktoum City District One West - Phase 1 – Ghadeer Al Tair (Meydan), 467 units
• Mudon Al Ranim 8 – Al Hebiah Sixth (Dubai Properties), 228 units
• Fashionz 1 By Danube – Al Barsha South Fifth (Danube), 788 units
• Westwood Grande Ii By Imtiaz – Al Barsha South Fourth (Imtiaz), 153 units
• California Village – Wadi Al Safa 4 (Gfh), 212 units
• Binghatti Gardenia – Al Barsha South Fourth (Binghatti), 308 units
• Sunridge – Madinat Dubai Almelaheyah (Emaar), 148 units
• Al Habtoor Tower – Business Bay (Al Habtoor Group), 1,739 units
• Altai Tower – Al Barsha South Fifth (Tiger), 239 units
• Elbrus Tower – Al Barsha South Fifth (Tiger), 271 units
• Divine Living – Al Barsha South 3 (Takmeel), 118 units
• Sky Suites By Peace Homes – Al Barsha South Fourth (Ahdaaf), 239 units
• Society House – Downtown Dubai (Invest Group Overseas), 417 units
• Damac Hills - Golf Gate 2 – Al Hebiah Third (Damac), 464 units
• Samana Ivy Gardens – Wadi Al Safa 5 (Samana), 374 units
• Samana Skyros – Al Barsha South 3 (Samana), 441 units
• Mag 22 – Nad Al Sheba First (Mag), 23 units

Delivered

• Jumeirah Marsa Al Arab – Um Suqaim Third (Meraas), 105 units
• Azizi Riviera 9 – Al Merkadh (Azizi), 232 units
• Azizi Riviera 8 – Al Merkadh (Azizi), 217 units
• Prime Townhouses – Jabal Ali First (Prescott), 8 units
• Binghatti Canal – Business Bay (Binghatti), 307 units

Most expensive sales

Top apartment sales

1. AED 80,000,000 – Bluewaters Residences 7, Marsa Dubai
2. AED 76,500,000 – Jumeirah Living Marsa Al Arab, Um Suqaim Third
3. AED 53,653,888 – Seapoint Tower 2, Marsa Dubai
4. AED 40,931,720 – Cavalli Couture - Tower 2, Al Wasl
5. AED 32,000,000 – Bulgari Residences 6, Jumeirah Bay Islands

Top villa sales

1. AED 81,500,000 – Hadaeq Sheikh Mohammed Bin Rashid
2. AED 80,000,000 – Emirates Living
3. AED 75,000,000 – Jumeirah Bay Islands
4. AED 70,000,000 – Palm Jumeirah
5. AED 55,000,000 – Al Merkadh

Notes on methodology

Scope. The headline totals and category table take in every property category logged in the data, Plot and Building included. The primary/resale split, top-area rankings and year-on-year series span Apartment, Villa and Commercial only, so those numbers are intentionally smaller than the headline and shouldn't be summed across sections.

Rounding. The headline totals are the definitive rounded figures. Category-level breakdowns are rounded on their own and may not add up precisely to the headline.

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