Dubai’s Real Estate Performance: A Closer Look at August 2023

The strong performance of the Dubai residential market is being driven by a number of factors, including the city’s growing population, the increasing affluence of residents, and the government’s efforts to attract foreign investment.

The Dubai residential market continued to grow in August 2023, with prices and rents rising across all segments. The average residential price in Dubai increased by 18.1%. Apartment prices rose by 18.5%, while villa prices increased by 16.2%.

In August 2023 alone, the market witnessed a total of 11,953 sales transactions valued at AED 33.58 Billion. What’s more remarkable is that this represents a 38% year-over-year increase compared to August 2022.

In the breakdown of sales, apartments continue to dominate, recording 8,983 transactions with a value of AED 18.1Billion. This trend shows Dubai’s strong appeal to young professionals, expatriates, and global citizens who are looking for both luxury and convenience. The villa segment also performed strongly, boasting 1,911 transactions valued at AED 6.9Billion.

Land plots have recorded 832 transactions valued at AED 8.2 Billion, marking an extraordinary 184% increase in volume year-over-year. This underscores Dubai’s increasing appeal not just for ready-to-move-in properties but also for longer-term investment in land assets.

August also saw a dramatic rise in mortgage transactions, 2,933 transactions amounting to AED 10.03Billion. This is a striking 58% increase year-over-year, pointing to better lending conditions, and above all, heightened confidence in the market’s stability.

The price range of the sales transactions offers further insights. A dominant 28% of transactions fell in the AED 1-2 million range, suggesting that the market is also attracting middle-income investors. The AED 2-3 million, AED 3-5 million, and AED 5 million+ brackets followed with 19%, 15%, and 6% respectively.

In terms of standout locations, Business Bay takes the lead. With 1,205 transactions totalling AED 2.20Billion, the area strengthens its reputation as a top place for both living and business investments.

For those who really love luxury, villas in Zaya Zuha Island (The World) sold for AED 79 Million, followed by Emirates Living at AED 70 Million, and MBR City, Phase 1, District 1 at AED 67 Million. These transactions reflect that the ultra-luxury segment is alive and thriving.

The Dubai residential market is expected to remain strong in the coming months, and prices are likely to continue to rise. The market appears to be set for ongoing strength, supported by both macroeconomic factors and local market conditions.