Dubai real estate: January 2023
Do you want to invest in Dubai real estate in 2023, but are still unsure? Not sure you have all the information you need to make informed investment decisions?
This article is for you! Find out how Dubai's real estate sector will perform in January 2023.
First week of January 2023: A strong start for Dubai real estate
Dubai's real estate sector continues to grow, with a strong start in 2023. If you're planning to buy a new property, it's best to do so before property prices reach higher levels.
According to figures published by the Dubai Land Department, total real estate transactions in the Arab emirate reached AED 10 billion in the first week of the year alone, equivalent to $2.72 billion.
To give you an idea of price trends, in Marsa Dubai and Al Thanyah Fifth, for example, where the largest number of transactions were recorded, land was sold for AED 623 million (USD 170 million) and AED 77.23 million (USD 21 million) respectively.
In the first week of January 2023, 270 plots of bare land were purchased, while 1,907 apartments and villas were sold for a total of AED 4.89 billion (USD 1.3 billion). This is a better performance than in the last week of December 2022.
In the last week, 170 bare plots were sold, while transactions for villas and apartments totalled AED 5.64 billion (AED 1.5 billion).
This steady rise in transaction volumes and property prices from the first week of January 2023 speaks volumes about the level of rental yield that the city promises buyers and investors.
January 2023: State of the real estate sector in Dubai
The qualitative upturn seen in Dubai real estate in the first week of January 2023 has further stimulated property purchases and investment projects in the city.
Thus, from January 2022 to January 2023, average prices rose by 10.6%, with the highest increase recorded for villas, whose average purchase price rose by 12.9%. There was also a 10.3% increase in the average purchase price of apartments over the same period.
In January 2023 alone, the Dubai Land Department recorded 9,229 real estate transactions, representing an increase of almost 69.2% on the number of sales in January 2022.
For the month of January 2023, the average rent for a rented apartment in Dubai is AED 98,307 (USD 26,800), while villas are rented at an average price of AED 290,242 (USD 79,000).
Per square meter, the average cost of an apartment in Dubai was AED 1,196, or USD 330, while a villa cost around AED 1,411, or USD 390 per square meter.
Although these are interesting performances for real estate agents and investors alike, these sales prices and rents have still not reached the records set at the end of 2014. The price of an apartment in January 2023 is still 19.6% lower than in 2014, while that of villas is 2.4% lower.
In other words, there's a ceiling that hasn't yet been reached that may be reached in this year or beyond. If you're thinking of getting into residential real estate or rental property investment in Dubai, now could be the time to start building up your real estate assets.
Whatever the nature of your real estate project, you'll find several types of property to suit your needs.
Why invest in Dubai real estate in 2023?
Given the recent sharp fluctuations in share prices, most investors prefer to invest more capital in rental property.
In particular, the choice of large cities for the purchase of rental properties is justified by rental demand and rental profitability, which are generally higher than average.
What's more, current trends indicate that price rises in both residential and rental property will continue. So, if you want to invest in apartments or villas for rental, Dubai offers you the guarantee of stable income, high rents and very attractive capital gains on resale.
Just look at the dynamism of the real estate sector, the numerous new real estate developments and the massive hotel complexes that are continually being built in the city.
Indeed, Dubai is almost never short of new property offers, which is not the case for most of the French real estate sector.
The Arab emirate also offers a highly attractive tax and administrative advantage to foreign investors, with a rent control policy that is more favorable to property sales.
That said, make sure you invest wisely, in the right neighborhood and at the right time, with the right real estate agency, to maximize your chances of finding tenants more quickly. Above all, identify the right time to invest. And that time is probably now.
