The real estate market in Dubai is one of the fastest growing in the world. In July 2023, we broke the historical record for the number of transactions. At the same period, real estate prices continue to rise.
Statistics of the real estate market in Dubai
The number of transactions in Dubai with Business Bay property has reached record levels. The market concluded 11,228 sales contracts in July – 6.6% more than in June. The company Property Monitor assumes that the total number by the end of the year will reach 120 thousand.
At the same time, real estate prices in the Emirates continue to grow. On an annualized basis, Dubai’s cost per square meter increased by 17.72%. Only in July did analysts record a growth of 2.17%.
It is noteworthy that the market is skewed towards premium real estate. The number of residential real estate sales worth over 10 million dirhams ($2,722,000) has doubled. In six months, the market saw 555 such transactions, 305 villas, and property in downtown Dubai.
In the first six months of 2023, Dubai set a record for selling the most expensive housing – penthouse 1402 in Jumeirah Marsa Al Arab. The price of the lot was $114,349,000.
In the price segment, $200,000-$270,000 also saw growth. The volume of transactions increased by 1.1%. And the number of transactions with real estate worth $270,000-$800,000 (usually occupying the largest share of the market) decreased by 0.7%.
Market trends: Abu Dhabi, mortgages and villas
The real estate market is growing not only in Dubai. There are many promising locations in the UAE, and one of them is Abu Dhabi.
Investors expect Abu Dhabi to offer no fewer opportunities than Dubai offers. And this is confirmed by statistics. For example, the residential real estate market of Abu Dhabi in the second quarter of 2023 registered 2487 sales transactions, which is 101.1% more than a year earlier.
Also, Abu Dhabi’s strong growth is expected due to the rapid development of the emirate – several major projects are underway here. For example, the Etihad Rail railroad for passengers, a new airport terminal, large museums, and entertainment complexes.
Another trend in the Dubai market is the growth in the number of mortgage transactions. In July, 3,199 transactions were made, 17.4% more than before.
The third trend is the growing interest in suburban real estate. Dubai developers regularly announce new low-rise projects. All because a new lifestyle is forming in the UAE – people are increasingly choosing secluded villas outside the city instead of skyscrapers.
Finally, the fourth trend is the growth in the number of transactions in the secondary market. The share of such transactions amounted to 53.3% – 2.7% more than in the previous month. It means that the market is not overheated.
EMAAR Properties remained the most active company on the primary market, with a share of 15.6% of all registrations. It registered 813 transactions. Next comes DAMAC Properties, whose share amounted to 12.9% of all transactions. Most sales were in Mykonos (292) in DAMAC Lagoons and Camelia (138) in DAMAC Hills 2. Danube is in third place with a 7.7% share; the most sales were at Viewz (374) in Jumeirah Lakes Towers.
Market outlook: what’s in store for Dubai
A slowdown in growth rates is unlikely shortly. But investors should be more careful: it is important to calculate the availability and profitability of the project. Before making a deal, make sure you can pay the mortgage/installment payments and then sign the contract.