Residential Property transactions in Dubai for the first 10 months of 2023 have exceeded the total transactions for the entire year of 2022. The sustained demand for both secondary market and off-plan properties is attributed to overseas investors and new migrants.
Record-Breaking Numbers
CBRE’s latest Dubai Residential Market Snapshot reveals a total of 93,590 residential transactions, surpassing the 2022 full-year total of 92,178. This marks the highest total ever recorded in a year, showcasing the robust demand in the Dubai real estate market.
October Statistics: Residential PropertyÂ
While the overall trend is positive, the number of transactions in October saw a 23.6% drop from the previous year, with off-plan transactions declining significantly by 57.2%. However, secondary market transactions experienced a growth of 29.5% in October.
Population Increase and Capital Gains
ValuStrat’s Q3 Real Estate Research indicates a net migration increase in Dubai for the initial nine months of 2023, surpassing the entirety of 2022. The third quarter witnessed the highest quarterly capital gains in a decade, with the ValuStrat Property Index (VPI) growing by a record 6.1%.
Property Value Growth
Villa valuations reached peaks not seen since 2014, growing by 19.8% year on year. Apartment VPI also experienced decade-long record capital gains, up 4.8% quarter on quarter.
Top Performers
Residential Property The highest quarterly performers in various areas include Palm Jumeirah, Jumeirah Islands, Dubai Hills Estate, Discovery Gardens, and The Greens.
Price Increases and Market Trends
Dubai’s average residential prices increased by 19.1% in the year to October 2023. Average apartment and villa prices rose by 18.7% and 21.4%, respectively. Despite this, Dubai’s rental market has experienced a moderation in growth rates since the start of the year.
Outlook and Analysis
CBRE’s Taimur Khan suggests that the decrease in total transaction volumes in October does not indicate weakened demand. The off-plan segment has seen a significant absorption rate, with 67.5% of units launched from 2022 onwards already sold.
Conclusion
Dubai’s real estate market continues to exhibit resilience and growth, attracting investors and migrants alike, while also experiencing changes in transaction dynamics.
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