In August 2023, the average sales price of real estate in Dubai was AED3,291,555, up from AED2,167,206 in August 2022, according to Allsopp & Allsopp. This is a 52% increase.
German nationals made up 6% of the total sales for the month.
With 22% of the market, UK citizens continued to lead, followed by Indians (13%), Russians (6%), and Lebanese (6%).
The Dubai Market is Drawing in Foreign Investment.
German purchasers had a preference for homes in Jumeirah Village Circle (JVC), as evidenced by the fact that they made up 25% of all transactions in the neighborhood.
In JVC, apartments sold for between AED750,000 and AED1 million accounted for 32% of all transactions, while deals between AED2 and AED3 million accounted for 27%.
These choices mostly line up with the purchasing behaviors of German customers. Jumeirah Golf Estates was the second most popular region among German buyers, accounting for 16% of all purchases there. If you’re interested in freehold property in Dubai, you can explore more about it on UAE Property Guide: Freehold Property in Dubai.
German purchasers’ interest in Dubai real estate is evident from the fact that most of these transactions took place in the secondary market.
Lewis Allsopp, CEO of Allsopp & Allsopp, stated, “We expect more activity in the Dubai real estate market in Q4 of 2023, as Germany and other nations seek opportunities in this diverse and dynamic market. He emphasized Dubai’s appeal as an economic hub capable of attracting attention from nations like Germany, which is currently dealing with its worst crisis in decades.
According to the research, there was a notable 27 percent decrease in the issuance of licenses for apartment buildings in the first half of 2023, which caused several German real estate development enterprises to declare bankruptcy
Even though local assessments indicate that German real estate values will drop by more than 5% in 2023 and then stabilize in 2024, Allsopp & Allsopp observed that prospective buyers are cautious because they think the market is expensive.
