Dubai Real Estate Market Report | Q3 2023

Dubai Real Estate Market Report | Q3 2023

Dubai Real Estate Market Report | Q3 2023

Middle Eastern Property Market Navigates Complex Dynamics

While the property sector grapples with a global backdrop of economic shifts, the Middle Eastern market demonstrates both resilience and complexity.

Tenancy Landscape Shifts

The overall number of new tenancy contracts experienced a decline of 6.7% on an annual basis. However, a resurgence was noted in the most recent quarter, with a 22% uptick. This cyclicality underscores the region's adaptive real estate dynamics amidst broader macroeconomic changes.

Rental Trajectory

Apartments continue to find favor, marking a 9.6% increase in rentals on a QoQ basis and an appreciable 16% YoY rise. Villas, often viewed as a bellwether for luxury preferences, registered a 6.3% quarterly growth and a robust 26% annual leap.

Luxury Sector Momentum

Indicative of the opulence in regional preferences, a sprawling 5-bedroom penthouse, encapsulating over 27,000 sqft in Marsa Al Arab, commanded a price of AED 420M.

Mortgage Market Dichotomy

In a rather bifurcated trend, the value of mortgage transactions receded by 6.5% to a figure of AED 29.3B. Paradoxically, in terms of sheer volume, there was a sharp ascent of 53%, with over 8,600 transactions being concluded.

Emerging Investment Frontiers

Palm Jebel Ali, with its strategic positioning and allure, has become a magnet for international investors, reflecting the ongoing globalization of property investment.

Off-Plan Market Dynamics

Damac Lagoons remains a formidable player, steadfastly holding its pole position in the off-plan villa segment.Analysts remain watchful, eager to decipher how these multifaceted developments might shape the future trajectory of the Middle Eastern property sector.

Q3 2023 Dubai Real Estate Market Performance:

Supply

  • 36 project were completed in Q3 composing over 7,000 units.
  • 90 projects were registered which is the highest number of quarterly project launches.

Sales Volume

  • 31,000 property sales transactions
  • 23% increase compared to Q3 2022

Sales Value: 

  • AED 98 billion in Q3 2023
  • 40% increase from Q3 2022

Off-plan Properties: 

  • 16,700 recorded sales of off-plan properties.
  •  20% increase in sales volume compared to Q2 2022. 
  • Sales value for off-plan properties surged to AED 50 billion, showing an impressive 56% increase.

Ready Properties

  • There were 14,700 sales of ready properties.
  • 26% increase in sales volume compared to Q3 2022.
  • Sales value for ready properties reached AED 47 billion, representing a notable 27% increase from the previous year.

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