Dubai real estate: February 2023

Want toinvest in Dubai to build up your real estate portfolio? Would you like to get started in residential real estate or buy a property to let?

You want to have a clear idea of the current state of the real estate market so you can make an informed decision. We give you the lowdown on the health of Dubai’s real estate sector for the month of February.

You’ll be given very specific details, including average sales prices for apartments and villas, the number of transactions completed, the districts in the emirate of Dubai with the most real estate sales, etc. Read on.

Dubai real estate in February 2023: statistics

As we enter 2023, real estate in Dubai is doing very well. That’s according to recent trends published by the Dubai Land Department (DLD), the city’s land agency.

For the month of February, the number of sales is up sharply, as are prices. Indeed, with strong rental demand and demand from those wishing to become homeowners, the Arab emirate recorded a total of 9,000 property sales.

Compared with February 2022, February 2023 achieved an unexpectedly strong performance, with an impressive 42% increase in the number of real estate sales.

To go into more detail, there are many more apartment sales, due in particular to the low demand for villas.

As a result, real estate transactions involving apartments have risen by 56% compared with February 2022 figures.

Villas also saw a 16.4% increase in sales compared to last year, although not as impressive as apartments.

That said, let’s talk about average property prices.

Average property prices in Dubai in February 2023 ?

In terms of average price trends, the month of February 2023 achieved a performance not seen for 10 years in Dubai.

Indeed, average apartment prices in the emirate stood at 1.1 million Dirhams, representing an increase of 6.8% compared to February 2022.

In the case of villas, average prices have risen by 24.5% compared with February 2022. Average purchase prices were AED 2.5 million.

In all, the total value of real estate sales for the month of February 2023 in Dubai amounts to almost 27 billion Dirhams. Compared with last year’s figures, February 2023 saw a 64% increase in the value of real estate sales.

In short, don’t expect property prices in Dubai to fall in 2023.
And if you want more details, you should know that almost 59% of real estate sales in February 2023 were off-plan.

Sales of ready-to-buy properties therefore only accounted for around 41% of total sales.

It seems that the supply available on the secondary market was not sufficient to cover all the demand for real estate in the Arab emirate during the month.

As a result, investors have had no alternative but to buy projects currently under construction, as offered by real estate agencies.

Dubai's most popular districts for investors in February 2023

According to figures published by the Dubai Land Department, five of Dubai’s neighborhoods are particularly attractive. If you have sufficient savings, you can take an interest in these neighborhoods. These are :

Jumeirah Village, which recorded 927 sales at AED 717 million ;
Business Bay, which recorded 772 sales at AED 1.32 billion ;
The Dubai Marina district, which recorded 744 sales at AED 2.68 billion ;
Damac Lagoons, which recorded 424 sales at AED 1.3 billion ;
Dubai Creek Harbour, which recorded 377 sales at AED 830 million.

Should you invest in Dubai real estate in 2023?

While investing in major metropolises has always been an excellent idea due to low mortgage rates, Dubai stands out for its special status. And it’s not just because of the favorable tax environment.

In fact, it’s one of the few major metropolises where new real estate is still available. Property developers continue to launch new real estate programs, enabling foreign investors to invest in new homes and expect high rents.

In these times of high inflation and economic uncertainty, real estate investment in Dubai is the best way to capitalize on your property purchase.

Although you can also invest in older homes, the rapid rise in new-build prices means that you can benefit from very high rental yields, not least because new-build rents are often very high. The city only attracts buyers with high purchasing power.

What’s more, the city’s rich infrastructure is driving up property values in this Arab emirate. All you need to do is find the right offer and position yourself at the right time. You caninvest in apartments or villas, depending on the nature of your real estate project.

Apartments offer more attractive rental yields, because it’s easier to find tenants and buyers. However, with villas, you can realize much more attractive capital gains.