Transactions in the Dubai property market are continuing to break records as Q1 ends.
The Dubai property market had its most successful quarter ever in Q1
Property transactions increased by over 50% compared to Q1 2022, reaching nearly 31,000. Additionally, the total sales value was almost AED 89B, an increase of more than 60% compared to Q1 2022.
Breakdowns in Transactions
When working with a Dubai real estate company, investors are primarily interested in apartments, which can be seen by the significant increase in apartment sales of over 72% compared to Q1 of last year, totaling nearly 23,000 transactions. In Q1, 45B was spent on Dubai apartments, more than double the amount spent on any other property type.
Mortgage Value & Transactions
We observed a significant increase in mortgage transactions in comparison to Q1 2022. The number of mortgage transactions has surged by 63%, while the value of these transactions has increased by over 31%, indicating a rise in the number of live-in buyers.
Price Changes
The current average price per square foot is AED 1.285K, the highest ever recorded.
- The median rent for apartments has increased by 16% compared to Q1 2022 and is now AED 50K.
- The median rent for villas has increased by 22% and is now AED 140K compared to Q1 2022.
Off-Plan vs. Ready Properties
Currently, off-plan property transactions make up 60% of all transactions, surpassing the number of ready property transactions.
Top Performing Areas in Q1 - 2023
- Jumeirah Village Circle surpassed Business Bay in off-plan sales, totaling 2,396 sales worth AED 1.8B.
- Business Bay and Dubai Marina are in a tight race for ready property transactions
- Business Bay is slightly ahead in sales volume at 1,229 transactions worth AED 2.1B, but Dubai Marina takes the lead in total sales value at AED 3.1B with 1,224 transactions.
Top Performers - Off-Plan and Ready, All Property Types
Apartments
For off-plan apartments, Jumeirah Village Circle took the lead with 2,361 transactions worth AED 1.8B, while ready properties in Dubai Marina recorded 1,212 transactions worth AED 3B.
Villas
Damac Lagoons topped the list of off-plan properties with 1,351 transactions worth AED 4.3B, while Emirates Living had 168 transactions worth AED 1B in ready properties.
Commercial
The off-plan Al Merkadh had 42 transactions worth AED 107M, while Business Bay had 357 transactions worth AED 610M among ready properties.
Rent is on the Rise
The rent for new Downtown contracts is AED 25,000 more per year than renewed contracts.
Completed Projects Vs. Launched Projects | Q1 2023
- In Q1, a total of 33 projects were launched, which will result in the handover of 9,666 units.
- In Q1, 30 projects were completed, and more than 9,600 units were handed over.
Property Sales Volume by Price Range
In Q1, there were almost 20,000 property transactions in Dubai. Over 60% of these transactions involved properties that sold for up to AED 2 million. However, more than 2,700 transactions were still for properties selling at AED 5 million or more, suggesting that the luxury Dubai property market is still growing.
For the Love of Luxury
Luxury transactions are still on the rise, and the most expensive transaction occurred at Bulgari Lighthouse on Island 2 for a value of AED 410M.
Top 5 Projects with the Most Expensive Apartments Sold:
1. Bulgari Lighthouse, Island 2 - sold for AED 410M
2. Aire Dubai, Al Wasl - sold for AED 119M
3. One Canal, Dubai Water Canal - sold for AED 73M
4. ORLA by Omniyat - sold for AED 65M
5. BV Residences 4 - Jumeirah Bay - sold for AED 65M
Here Are the Top Five Areas with the Highest-Priced Sold Villas:
1. Palm Jumeirah AED 183M
2. Emirates Living for AED 70M
3. Dubai Hills for AED 47M
4. Tilal Al Ghaf for AED 45M
5. MBR District 1 for AED 31M.
Key Takeaways
According to Dubai real estate company professionals, the property market had its best quarter ever, with record-breaking sales volume and value. The total sales value is close to 89 billion, indicating high investor confidence in the market.
- Investors are mainly interested in buying apartments. The total property transactions comprised over two-thirds of off-plan and ready transactions combined.
- Rent prices have increased by AED 25K for new rental contracts Downtown compared to contract renewals. This rise in rent prices is seen across Dubai, leading many renters to consider buying their first home.
- For three consecutive months, Bulgari Lighthouse has had the most expensive property sales, including an apartment that sold for AED 410 million.
- Damac Lagoons is still leading the sales of off-plan villas.
- Although the Dubai Marina and Business Bay have the same sales volume, the Dubai Marina's sales are worth AED 1 billion more than Business Bay.
