Emaar Business Park Building No. 3, First Floor, P.O. Box 125400, Dubai (UAE)

Q2 2023 Dubai Real Estate: Transactions Worth AED 90.62 Billion Were Recorded

The Dubai real estate market in Q2 2023 posted its strongest performance for the month of June in a decade. In June alone, 10,419 real estate transactions were completed compared to 8,846 in June 2022, an increase of 17.78%. According to the Dubai Land Department data, there was a total of 30,086 real estate transactions in the 2nd quarter of 2023, amounting to AED 90.62bn. This represents an increase of 34.8% as compared to Q2 2022.

While observing these record-breaking transactions, Sohail Raja, leading Valuations & Research at Hamptons International Dubai, has come up with interesting facts and insights on the ready, off-plan, and prime real estate.

Dubai Real Estate Top Performing Areas & Property Types in Q2 2023

Top performing property types in Q2 2023
Fig. Top performing property types in Q2 2023

Ten areas contributed to almost 68 percent of the total sales value and 54 percent of the total number of transactions in the off-plan market. The areas and communities majorly were in the limelight due to their waterfront properties, central location, and affordability in some cases; these were:

  • Dubai Marina
  • Palm Jumeirah
  • Emaar Beachfront
  • Dubai Creek Harbour
  • Dubai Hills
  • Business Bay
  • Jumeirah Lakes Towers
  • Jumeirah Village Circle
  • Dubai Design District

Transactions & Supply

Properties for Sale

Fig. Ready Property Transactions across a period of three years

Average residential prices in Dubai grew by 17.4% in the year through to June 2023, with apartment prices increasing by 18.50% and villa prices by 16.25% over the same period. In June 2023, apartment prices stood at AED 1,320 per square foot, and average villa prices stood at AED 1,552 per square foot.

Fig. Off-plan Property Transactions across a period of three years

Average apartment sales rates per square foot are still 11.7% below the record highs of 2014, although several neighborhoods have long surpassed their 2014 figures. Conversely, average villa sales rates are currently 6.3% above their 2014 peak. Jumeirah Bay Island recorded the highest sales rate per square foot in the apartment segment of the market, at AED 11,158 per sq. ft., and also recorded the highest sales rate per square foot in the villa segment of the market at AED 5,597.8 per sq. ft.

Fig. Sale Price Trend over the past two decades

Properties for Rent

Average rents in Dubai grew by 22.3% in the year to June 2023, down from the 23.0% growth rate registered in the prior month. Over this period, average apartment rents rose by 21.9% and average villa rents by 22.7%. As of June 2023, the average apartment and villa asking rents reached AED 93,000 and AED 311,7000 per annum, respectively.

Fig. Rent price trend in the past decade

Luxury Real Estate & Prime Market Performance

Prime areas such as Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island are showing strong demand from global Ultra High Net Worth Individuals (UHNWI) and showing no signs of retreating, thus reinforcing Dubai’s position as a world-class second home destination.

Fig. Luxury property market transactions as per the Dubai Land Department

Average transacted prices stand at around AED 3,360 per square foot / $915 per square foot, the city remains one of the world’s most affordable luxury home markets, which is further enhancing Dubai’s appeal amongst international buyers. A shortage of new supply and strong inflows of UHNWIs who are targeting second homes in Dubai’s premier districts are expected to sustain further price rises.

Fig. Volume of transactions above AED 10 million, as per the Dubai Land Department

Dubai Real Estate Market Outlook in Q2 2023

There is no sign of a development slowdown in Dubs 2023 with promises for a slew of new projects. The market has witnessed a wide variety of projects until now in 2023. In June, Emaar unveiled a new AED 73bn waterfront development which will include 7,000 homes called The Oasis.

Above all, the geopolitical factors in the wake of the Ukraine War and a volatile unpredictable global economy have pushed investors to seek safer havens to relocate their money to. Dubai provides a secure and stable financial environment for capital investments and appreciations. Its constantly thriving and stable economy has been the least affected by global events and disasters, making UAE a trustworthy and reliable investment zone in the world.

Summing Up: Dubai Continues to Be in Global Limelight

Fig. Total residential supply in Dubai

Dubai’s prime residential market has been and continues to be a global outlier, as witnessed by record price growth in 2022, albeit this has been from a low base. The rise in Prime real estate values is fueled by Dubai’s safe-haven status. Along with that, a large and diverse range of international ultra-high-net-worth individuals in search of luxury second homes has risen. Generally, all of this coupled with the government’s world-leading response to the COVID-19 pandemic has increased business confidence.

Supply remains a critical factor for the remainder of 2023, Dubai’s prime markets are expected to see 142 homes delivered by 2025. Developers have not responded to the huge increase in demand as we have seen in past cycles and with supply remaining limited and demand for luxury waterfront continuing to gain strength, a positive outlook for the remainder of 2023 is supported by a clear demand-supply imbalance as well as a positive economic backdrop. Also, a return to steady and sustainable growth will instill confidence in homeowners and investors alike.

Would you like to invest in a market as dynamic and booming as this?

Hamptons International is an award-winning firm functioning in all major freehold communities in Dubai, offering a wide property portfolio to choose your dream home from. From the best vicinity for your children to a corporate office that’s strategically located to offer the utmost convenience, we boast a huge selection.

To know more, dial 800 HAMPTONS (42678667)

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