Dubai' s real estate market experienced notable growth in December 2023, both in terms of sales and transaction values. This article offers a detailed analysis of the main trends observed during this dynamic month.
Total real estate transactions and growth rates
Total number of sales
In December 2023, the total number of real estate transactions in Dubai stands at 11,282, marking an increase of 18.7% compared to December 2022. Breaking down these figures, we note:
- 5,985 sales, up 7.6% on December 2022
- 5,302 sales, representing an extraordinary increase of 34.4% over the same period last year
Total sales value
The total value of sales for December 2023 is estimated at AED23.6 billion, almost double(+99.3%) that of December 2022. The breakdown of sales by property type reveals significant increases:
- Apartments: Sales value reaches AED5.8 billion (+27%)
- Villas: Sales value of AED2.6 billion (+51%)
- Commercial properties: Sales value reaching AED532.8 million (+42.7%)
- Land: Sales value peaks at AED14.7 billion (+60%)
Average rental rate for different properties
Apartments
Renting an apartment in Dubai in December 2023 cost an average of AED68,300 per year, representing an increase of 18.7% on the previous year. This rise is indicative of increased demand in the residential apartment sector.
Villas
Villas have also seen their average rental price rise to AED165,500 annually, a notable increase of 23.1% compared to December 2022. This reflects a growing preference for larger residential spaces.
Commercial properties
Rents for commercial properties in Dubai have risen dramatically, with the average rate reaching AED60,000 per annum, reflecting a 39.5% increase on December of the previous year. This underlines a renewed interest in commercial space in the city.
Most active neighborhoods in terms of sales
Al Barsha South
With 1,041 transactions and a cumulative sales value of AED1.093 billion, Al Barsha South was the district with the highest number of sales this month. The area continues to attract buyers and investors thanks to its strategic location and modern infrastructure.
Dubai Marina
The famous Dubai Marina followed with 705 transactions totalling AED294 million, underlining its enduring popularity among buyers seeking sophisticated urban living close to the coast.
Business Bay
Business Bay, Dubai's business hub, recorded 672 sales worth AED122 million. It's a prime choice for professionals and businesses looking to be at the heart of Dubai's economic activity.
Dubai Hills Estate and Madinat Dubai Almelaheyah
Other noteworthy districts include Dubai Hills Estate with 622 transactions (value: AED320 million) and Madinat Dubai Almelaheyah with 430 transactions (value: AED982 million). These areas continue to attract due to their luxurious amenities and attractive living environment.
Outlook for early 2024
Continued growth expected
Given the trends observed in December 2023, it is anticipated that the Dubai real estate market will continue its upward trajectory in early 2024. Substantial increases in transaction values and rental rates indicate renewed investor and tenant confidence.
Factors influencing the market
Several factors should continue to support this growth, including :
- Increased foreign investment
- Government incentive policies
- Urban infrastructure expansion
- Luxury real estate projects in progress
December 2023 marked an exceptional period for the Dubai real estate market, with considerable increases in both sales and rental values. The various property segments - from apartments to land - all benefited from this positive momentum, reinforcing Dubai's position as a key destination for real estate investment. With a favorable outlook for 2024, Dubai's real estate market looks set to continue its flourishing expansion.
