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Dubai’s Real Estate Market Review 2023

Dubai's Real Estate Market Review 2023

Dubai’s Real Estate Market Review 2023

Dubai’s real estate market is buzzing with activity, and the latest data from Knight Frank’s Autumn 2023 Dubai Residential Market Review reveals some intriguing trends. Let’s break down the key points in a structured blog format:

Dubai’s Average Property Prices

  • In the past year, Dubai’s property prices have surged, marking a 19% increase.
  • The third quarter of 2023 saw another 5% rise in average residential property prices.
  • Comparatively the prices have risen by an impressive 30% since Q1 2020.
  • However, it’s worth noting that prices remain 7% below their peak in 2014.

Market Insights

  • The Autumn 2023 Review by Knight Frank highlights that Dubai’s prime real estate markets are highly sought after.
  • Prime markets represented 4.8% of total transactions in the first nine months of 2023.
  • What’s even more interesting is that 51% of transactions from Q1 to Q3 involved the secondary market, showing that many people buying homes are either end-users or second-home buyers.
  • The ready homes market continues to dominate the real estate scene in Dubai.

Off-Plan Real Estate Boom

  • Developers have responded to the stable and sustained demand for homes in Dubai, leading to a surge in off-plan property launches in the last 12 to 18 months.
  • Off-plan sales for the first nine months of 2023 totaled an astounding AED 100 billion ($27.2 billion).
  • Sales for ready homes were equally impressive, amounting to AED 104.9 billion ($28.5 billion).

Property Segments

  • Apartment prices in Dubai are on the rise, with a 5.1% increase in Q3 2023, pushing them over AED 1,300 per square foot.
  • This marks a substantial 26% increase since Q1 2020, though prices remain 10% below the 2014 peak.
  • Villa prices also experienced growth, with a 4.5% increase between June and September, culminating in an average price of AED 1,580 per square foot.
  • This reflects an 18% surge compared to the previous year and a remarkable 57% increase since Q1 2020.

Best-Performing Areas

  • Some areas in Dubai have witnessed remarkable growth in property prices. For instance, Dubai South’s apartments have seen an astonishing 73% increase in the past 12 months.
  • Following closely are Jumeirah Lakes Towers and Umm Suqeim Third (Madinat Jumeirah Living) with price increases of 67% and 37%, respectively.
  • Palm Jumeirah maintains its status as the most expensive apartment submarket, with prices standing at AED3,390 per square foot.
  • Notably, both The Palm Jumeirah and Umm Suqeim Third submarkets have witnessed their prices surpass Q1 2020 levels by 122% and 100%, respectively.
  • In the villa segment, Jumeirah Islands stands out with a 65% increase in prices over the past year, now averaging AED 2,680 per square foot. Dubai South’s villas recorded the most significant quarterly price change, soaring by 33% during Q3.

Expert Insights

  • Nick Candy, CEO of Candy Capital, expresses his confidence in Dubai’s luxury real estate market. He attributes this confidence to Dubai’s remarkable trajectory, world-class lifestyle, and strategic global positioning.
  • He also highlights that Dubai’s real estate remains relatively affordable compared to other global cities and predicts substantial price growth in the luxury market over the next five years and beyond.

In conclusion, Dubai’s real estate market is thriving, with consistent price increases, especially in prime areas. The off-plan market is booming, reflecting strong demand for property in this dynamic city. With expert opinions suggesting substantial growth in the luxury real estate sector, Dubai continues to be a top choice for real estate investors.

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