Dubai real estate: January 2023

Do you want to invest in real estate in Dubai in 2023, but still have doubts? 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:
Dubai real estate off to a flying start

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 highest 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.

Over the past week, 170 bare plots were sold, while transactions involving 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 property 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.

While these are interesting performances for real estate agents and investors alike, these sales prices and rents still haven’t reached the records set at the end of 2014. Apartment prices in January 2023 are still 19.6% lower than in 2014, while villa prices are 2.4% lower.

In other words, there is a ceiling which has not yet been reached, and which may be reached in the course of 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 suggest that price trends in both residential and rental property will continue. So if you want to invest inapartments or villas for rental, Dubai offers you the guarantee of stable income, high rents and 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 at the right time, with the right real estate agency, to maximize the chances of finding tenants more quickly. Above all, you need to identify the right time to invest. And that moment is undoubtedly now.