Dubai’s real estate market has already set new transaction volume records in the first quarter of 2023 as global buyers and investors flock to the Emirati city.
The real estate adviser CBRE Group has reported that the total transaction volume for the first quarter of the year up to March 2023 has reached 29,323, marking the highest total ever registered.
Dubai has witnessed a remarkable surge in residential transactions, with a record-breaking monthly total of 11,597 registrations. This marks a significant growth rate of 47.3% compared to 2022. In addition, the surge in the real estate market has been bolstered by a substantial 96.1% rise in off-plan market transactions, along with a 12.4% uptick in secondary market transactions.
Dubai has emerged as one of the fastest-growing markets globally due to its investor-friendly policies and visa reforms. In 2022, prices and rents experienced a significant increase due to the surge in demand from global investors. However, they remain considerably cheaper than the real estate sectors of New York or London.
After the Ukraine war began, Russians seeking to protect their wealth from Western sanctions have been relocating from their homeland. Dubai has now emerged as one of their safe havens. Chinese investors who refrained from investing during the COVID period are now flocking to the city. Then you have crypto millionaires and European businesses arriving at the Emirati city as they seek to evade high taxes and inflationary pressures.
According to a CBRE report, residential prices in Dubai have experienced a significant surge. The average prices have increased by 12.8% in the year leading up to March 2023. The report also reveals that the average flat prices have increased by 12.4%, while the average villa prices have increased by 14.8% over the same period.
The cost of an average apartment in March 2023 was recorded at AED 1,234 per square foot, while the average price of a villa was noted at AED 1,455 per square foot.
Jumeirah and Palm Jumeirah have emerged as the top performers in Dubai’s real estate market. According to recent reports, in the apartment segment, Jumeirah has achieved the highest sales rate per square foot, with an impressive figure of AED 2,441.
Meanwhile, Palm Jumeirah has had the highest sales rate per square foot among villas, reaching AED 4,457. These figures are a testament to the growing demand for properties in these areas and the overall strength of Dubai’s real estate.
Surging Rents
According to CBRE, there has been a surge of over 26% in average residential rents right now. There has been a significant increase in average flat and villa rents, with the former rising by 26.3% and the latter by 26.2%. As of March 2023, the average annual rental rates for apartments and villas have reportedly surged to AED 101,044 and AED 300,984, respectively.
Palm Jumeirah has recorded the highest average flat and villa rents. The average rent for apartments in this area has reached AED 264,537 per annum, while the average rent for villas has reached AED 1,000,489.