Dubai’s Residential Market Sees a Record-Breaking Q2 2023

by Editor

Dubai’s residential real estate market has achieved remarkable growth in Q2 2023, setting new records for sales volume and value. With over 30,000 property transactions and a total sales value surpassing AED 91 billion, this quarter stands out as Dubai’s best-performing to date, showing an impressive 35% increase in transactions and a substantial 54% rise in sales value compared to Q2 2022.

The demand for apartments has surged, reaching AED 1,336 per square foot, marking the highest median price per square foot for Q2. Additionally, off-plan villa prices have witnessed a rapid 32% increase compared to Q2 2022. The surge is primarily due to growing interest in luxury villa communities and enticing post-handover payment plans offered by developers.

Emerging locations have also experienced increased demand due to affordability factors. Dubai Marina topped the list for ready property sales, while Jumeirah Village Circle led in off-plan sales. Notably, Damac Lagoons took the lead in off-plan villa market sales, with 642 transactions valued at AED 1.8 billion.

Dubai’s prime real estate market continues to thrive, positioning the city as a luxury destination on par with established global markets. Areas like The Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island are attracting relentless demand from ultra-high-net-worth individuals (UHNWI) and reinforcing Dubai’s reputation as a preferred choice for second homes.

Dubai remains one of the world’s most affordable luxury home markets, with average transacted prices around AED 3,360 per square foot (approximately US$915 per square foot). Notably, the city experienced a record-breaking 44% surge in prime home prices last year, the highest globally, with a continuing 16% increase in Q1 and an annualized growth rate of 54.6%.

The ultra-prime real estate market in Dubai is also thriving, with sold apartments in Bulgari Lighthouse, Island 2, fetching AED 137 million, and Emirate Living leading the top five areas with the most expensive sold villas, including one sold for AED 150 million.

Dubai has solidified its position among the top global luxury residential markets, offering buyers approximately 1,130 square feet of prime residential space for US$1 million, three times more than what is available in London, New York, or Singapore. This affordability, coupled with exceptional real estate offerings, has fueled demand among affluent individuals.

The market outlook remains positive as Dubai’s prime residential market continues to grow rapidly, driven by its safe-haven status, the influx of diverse international ultra-high-net-worth individuals, and the government’s effective response to the pandemic. Despite potential risks related to global economic conditions, Dubai’s safe-haven reputation continues to enhance its appeal in uncertain times.

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