Dubai real estate: 1st quarter 2023
In the wake of global economic inflation in recent years, real estate markets have come under close scrutiny by many investors.
Dubai’s real estate market is no exception, especially after an exceptional and flourishing 2022. However, contrary to expert expectations, the figures for the 1st quarter of 2023 are dreamlike.
While many expect the market to slow down, the data reveal continued solid growth. If you’d like to know more about these figures, just read this article written by Dubai real estate experts.
Spectacular sales growth in Q1 2023
The first quarter of 2023 in Dubai was characterized by a significant increase in sales costs. Figures from the Dubai Land Department (DLD) reveal that transactions during the quarter totalled over 88.7 billion Dirhams (AED).
This represents an increase of 60.5% over the same period last year.
Although the increase is not as spectacular as in the fourth quarter of 2022, it is still significant at 9.4%. This growth was mainly driven by the new housing market, which recorded an 85.3% increase in new home sales.
The number of housing units rose by 42%. These figures demonstrate the importance of the new-build market in the overall growth of Dubai’s real estate market.
An increase in the number of sales
The first quarter of 2023 was a dynamic one for the Dubai real estate market. From Q1 2022 to Q1 2023, the number of sales increased by 50.5%.
The largest transactions were for apartments and land, which rose by 72% and 77% respectively.
Villa sales, on the other hand, were virtually unchanged, growing by a meagre 0.2% over the period. This trend is due to limited supply, which is unable to meet the strong demand forproperty purchases.
An upward trend in prices per m²
With its constantly evolving real estate market, the city of Dubai has never ceased to attract investors from all over the world. Despite rising prices per m², these investors continue to undertake and invest in large-scale projects.
For the first quarter of 2023, prices per m² rose by 6% for apartments, 21.3% for villas and 23% for land. It should also be noted that this increase is 1.5% and 11.1% respectively for apartments and villas already built.
It should also be noted that figures show that the approximate average price per square meter for an apartment in Dubai is AED 11,500 (around EUR 2,300). For a villa, the average price is AED 19,000 (approx. EUR 3,800) per square meter.
This data shows that Dubai’s real estate market is constantly evolving, with increased demand for both residential and commercial properties.
Real estate investors can seize this opportunity to invest in properties in Dubai and benefit from the city’s growing property market.
The most popular areas for real estate investment in Dubai in 2023
At the end of the first quarter of 2023, DLD’s real estate market figures show five profitable neighborhoods for real estate investment. These include :
Jumeirah Village Circle: top of the ranking 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 neighborhoods are highly sought-after for their central location, modern amenities and high-quality services.
The breakdown of sales in terms of property prices in Dubai in 2023
Real estate sales in the first three months of 2023 in Dubai vary according to property type. The most sought-after properties for real estate investors are generally those costing less than AED 1 million (€250,000). The breakdown of sales is as follows:
35% of sales involve goods costing less than AED 1 million (value under €250,000);
27% of sales are of goods worth between AED 1 and 2 million (€250 to €500,000);
18% of sales involve goods worth between AED 2 and 3 million (€500 to €750,000);
11% of sales are of goods costing between AED 3 and 5 million (€750,000 to €1,250,000);
9% of sales involve goods worth more than AED 5 million (around €1,250,000).
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