The property market in Dubai: first quarter of 2023
In the wake of global economic inflation in recent years, property markets are being closely scrutinised by many investors.
The Dubai property market is no exception to this focus, particularly following an exceptional and thriving 2022. However, contrary to experts’ expectations, the figures for the first quarter of 2023 are nothing short of remarkable.
Whilst many are expecting the market to slow down, the figures show continued, robust growth. If you’d like to find out more about these figures, simply read this article written by property experts in Dubai.
A dramatic increase in turnover in the first quarter of 2023
The first quarter of 2023 in Dubai was characterised by a significant rise in sales costs. Figures from the DLD (Dubai Land Department) reveal that transactions carried out during this quarter totalled more than 88.7 billion dirhams (AED).
This represents an increase of 60.5 % compared with the same period last year.
Although the growth is not as spectacular as in the fourth quarter of 2022, it remains significant, reaching 9.4 %. This growth was mainly driven by the new-build market, which recorded an 85.3 % increase in new-build home sales.
As for housing, growth of 42 % was recorded. These figures demonstrate the importance of the new-build property market to the overall growth of Dubai’s property market.
An increase in the number of sales
The first quarter of 2023 was a buoyant period for the Dubai property market. Between Q1 2022 and Q1 2023, there was an increase in the number of sales, reaching 50.5 %.
The largest transactions were recorded for flats and land, which saw increases of 72 and 77 % respectively.
By contrast, villa sales remained virtually unchanged, with a meagre growth of 0.2 % over the period. This trend is due to limited supply, which is unable to meet the strong demand for’property purchases.
An upward trend in prices per square metre
With its ever-changing property market, the city of Dubai has continued to attract investors from all over the world. Despite the rise in prices per square metre, these investors continue to take on new ventures and invest in large-scale projects.
In the first quarter of 2023, prices per square metre rose by 6 % for flats, of 21.3 % for detached houses and 23 % for plots of land. It should also be noted that this increase amounts to 1.5 % and 11.1 % respectively for flats and villas already built.
It should also be noted that the figures show that the approximate average price per square metre for a flat in Dubai is 11,500 AED (around 2,300 EUR). For a villa, the average price is 19,000 AED (approximately 3,800 EUR) per square metre.
These figures show that the property market in Dubai is constantly evolving, with increased demand for residential and commercial properties.
Property investors can seize this opportunity to invest in properties in Dubai and benefit from the growth of the city’s property market.
The most sought-after neighbourhoods for property investment in Dubai in 2023
At the end of the first quarter of 2023, figures from the DLD property market highlight five neighbourhoods offering good returns on property investment. These include, amongst others:
Jumeirah Village Circle: top of the rankings with 3,310 transactions
Business Bay: in second place with 2,750 transactions
Dubai Marina: in third place with 2,287 transactions
Dubai Creek Harbour: in fourth place with 1,758 transactions
Damac Lagoons: in fifth place with 1,351 transactions
These neighbourhoods are highly sought-after due to their central location, their modern facilities and their high-quality amenities.
The breakdown of sales by property price in Dubai in 2023
Property sales in Dubai during the first three months of 2023 varied depending on the type of property. The properties most sought after by property investors are generally those costing less than 1 million AED (equivalent to €250,000). The breakdown of sales is as follows:
35 % of sales relate to goods costing less than 1 million AED (worth less than €250,000);
27 % of sales relate to properties valued at between 1 and 2 million AED (i.e. between 250 and 500,000 €);
18 % of sales relate to properties valued at between 2 and 3 million AED (i.e. between 500 and 750,000 €);
11 % of sales relate to properties costing between 3 and 5 million AED (i.e. between 750,000 and 1,250,000 €);
9 % of sales relate to goods worth more than 5 million AED (approximately €1,250,000).
