Off-plan transactions in the Real Estate Market of Dubai have Increased by Over 59%. According to CBRE data, the real estate market in Dubai has seen rents rise by over 21% and sale prices rise by over 19% in the last year.
In August 2023, there were 11,328 transactions in the Dubai residential market as a whole.
This statistic, which is up 22% from the prior year, is the second-highest monthly total ever recorded.
Increase in Dubai Real Estate
Off-plan sales grew by 58.7% during this time, while secondary market sales decreased by 10.2%.
The number of transactions registered in the year up to August 20231 was 79,605, which is a record high for this period.
The rate of price growth in the sales market is accelerating. Average prices increased by 19.6% during the past year to August 20232, up from 18.1% a month earlier.
Average flat prices increased by 20% over this time, while average villa prices increased by 17.3%.
Average villa prices were AED1,571 per square foot as of August 2023, while average flat prices were AED1,344 per square foot.
Although numerous areas have already surpassed their 2014 record standards, the average flat sales rates are 9.6% lower than their similar peak from 2014.
On the other hand, average villa sales rates are currently 8.7% higher than they were in 2014.
Downtown Dubai recorded the highest sales rate per square foot in the apartment sector of the market at AED2,460, while Palm Jumeirah recorded the highest sales rate per square foot in the villa segment of the market at AED4,915.
The Rate of Expansion in The Rental Market has Slightly Slowed Down.
In the year ending in August 2023, Dubai’s average rent increased by 21.7%, which is a little down from the 22.0% increase in July 2023.
The average rent for an apartment rose by 21.5% over this time, while the average rent for a villa jumped by 22.6%.
The average annual rent for an apartment was AED106,674 ($29,000) and for a villa was AED322,573 ($88,000) in August 2023.
In Palm Jumeirah, where average rents reached AED257,173 ($70,000), and in Al Barari, where average rents reached AED1,108,164 ($302,000), the highest annual flat and villa asking rents were recorded.
The residential market in Dubai is still expanding significantly, according to Taimur Khan, Head of Research – MENA at CBRE in Dubai.
Up to August 2023, there were 79,605 total transactions, which is the most ever for this period and represents a rise of 41.7% from the prior year.
These high levels of activity in the sales market are supporting faster price growth, with average prices showing a year-over-year increase of 19.6% in August 2023, up from the increase of 18.1% seen in July 2023.
However, this gain conceals some softening of market growth in the prime category, where we continue to observe a slowing of the rate of price increases in several core and premier residential regions.
Although demand is still strong, we are observing that the rate of rental increase is continuing to slow down; this is the eighth month in a row that this has happened. Learn more about Sharjah’s Freehold Properties.
A total of 376,211 rental transactions have been reported as of August 2023, representing an increase of 48 percent over the same month in 2019 and an increase of 8.7% over the previous year.
This development has been aided by a 28% increase in renewal registrations, while the number of newly registered rental contracts has decreased by about 12%.
The elevated costs associated with moving or signing new leases are to blame for the sharp split between new and renewed rental rates that have resulted in this huge reduction in new rental registrations.
