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.
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:
- 36 project were completed in Q3 composing over 7,000 units.
- 90 projects were registered which is the highest number of quarterly project launches.
- 31,000 property sales transactions
- 23% increase compared to Q3 2022
- AED 98 billion in Q3 2023
- 40% increase from Q3 2022
- 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.
- 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.