Dubai Real Estate Boom
The official index for sales and rentals performance in Dubai, February 2023
Investors in Dubai continue to demonstrate undeniable confidence in the real estate market. The month of February 2023 has left its mark as the strongest February ever in terms of sales volume and value in Dubai’s residential real estate market. Dubai has continued its remarkable growth in real estate transactions, as data from the Dubai Land Department revealed that the emirate witnessed the highest total sales value of approximately 26.70 billion AED, including residential units, lands, and buildings.
Overview of the residential real estate market
The department reported that around 9,000 property transactions were recorded in Dubai, representing an increase of approximately 43% compared to February 2022. The total sales value amounted to approximately 26.70 billion AED, showing an increase of about 64.86% compared to February 2022.
Apartments continue to be the main focus for investors, with apartment sales nearly doubling compared to February 2022, reaching approximately 6,000 transactions. Around 12.4 billion AED were spent on apartments in Dubai during February, including both ready units and off-plan units, accounting for nearly half of the total real estate transactions.
Mortgage Deals and Value
- Number of mortgage deals: 2,310 deals
- Value: 11.6 billion AED
It is worth noting that there has been an increase in mortgage deals with a value increase of over 70% compared to February 2022. The number of mortgage deals has also risen by more than 40% compared to February 2022, indicating an increasing number of buyers among residents.
Key Areas in Residential Demand
The data indicates that Jumeirah Village Circle has surpassed Dubai Marina in terms of sales volume, with approximately 700 off-plan property deals in Jumeirah Village Circle alone. Meanwhile, Dubai Marina witnessed the highest sales volume for ready properties.
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Residential Apartments:
- Off-plan apartment: Jumeirah Village Circle – 693 deals
- Ready apartment: Dubai Marina – 411 deals
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Villas:
- Off-plan villa: Damac Lagoons – 412 deals
- Ready villa: The Village – 83 deals
Residential Sales Price Index – February 2023
The average price per square foot reached an all-time high in February, reaching 1,313 AED. The price per square foot for off-plan apartments reached a record high of 1,700 AED. This represents an approximate 20% increase in off-plan apartment prices compared to February 2022.
Data has shown that residential units accounted for the largest share of the transactions conducted, as follows:
- Nearly 6,000 apartments were sold, representing an increase of approximately 50% compared to February 2022, with a value exceeding 12 billion AED.
- Around 2,000 villa deals were executed, representing a 10% increase compared to February 2022, totaling over 8 billion AED.
- 336 land plots were sold, marking an increase of over 46% compared to February 2022, amounting to nearly 5 billion AED in sales value.
- It is evident that off-plan residential properties outperformed ready properties, with approximately 60% of the total transactions being attributed to off-plan properties.
Property Sales Volume by Price Range
The data indicates that properties sold for up to 3 million AED accounted for over 60% of the total sales volume, with over 6,000 transactions taking place in February 2023. Additionally, over 900 deals were conducted with a value exceeding 5 million AED, indicating continued growth in the luxury real estate market in Dubai.
Important Deals for Luxury Apartments and Villas
The increase in luxury deals continues, with the highest-value transaction recorded in Bulgari Lighthouse, Island 2, where one apartment was sold for 410 million AED. As a result, Bulgari Lighthouse maintained the highest-priced property sales for three consecutive months.
Top 5 projects with the most expensive apartments sold:
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Bulgari Lighthouse, Island 2 – AED 410M
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Aire Dubai, Al Wasl – AED 119M
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One at Palm Jumeirah – AED 49M
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One Canal, Dubai Water Canal – AED 39M
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Six Senses Residences – Palm Jumeirah – AED 39M
Top 5 areas with the most expensive villas sold:
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Club Villas – Palm Jumeirah – AED 183M
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Emirate Living – AED 70M
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Elysian Mansions, Tilal Al Ghaf – AED 45M
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Dubai Hills – Hills Grove Community – AED 45M
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MBR City, District One – AED 31M
The official index for sales and rentals performance
Residential Rental Price Index – February 2023:
The rental price index in Dubai continued to recover in February 2023, driven by growing demand for residential units of all types. Rental prices in Downtown Dubai increased by 14% compared to February 2022. This prompted many tenants to transition from renting to purchasing homes for the first time. The value of new lease contracts in the city center was 25,000 AED higher than renewed lease contracts.
Average rental price in Downtown Dubai:
- New lease contracts: Average rent of 125,000 AED.
- Renewed lease contracts: Average rent of 100,000 AED.
Top 5 Rental Deal Areas in Dubai:
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Jebel Ali, First: 1,714 deals
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Business Bay: 1,651 deals
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Al Warsan, First: 1,499 deals
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Saih Shuaib 2: 1,379 deals
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Hor Al Anz: 1,359 deals
In conclusion, we can confidently say that the real estate market in Dubai will witness significant growth and substantial price increases in terms of sales, purchases, and rentals. All expectations confirm that the “Dubai real estate boom” will not quiet down during the current year. This is evidence of Dubai rightfully gaining the trust of investors from all around the world, positioning it at the top of the luxury housing index among global cities and attracting individuals with financial means.
