May 2023

May 2023

Greetings Dear Readers,

 

I hope you all had a marvelous month of May. As for Dubai real estate, the month has been marked by steady momentum. A total of ten thousand one hundred and forty-eight residential sales transactions were registered, an increase in volume of forty-two percent and seventy-five percent, MoM and YoY, respectively. These statistics are a testament to the sheer strength of the momentum that the market here is currently experiencing. The average price per square foot, currently at AED 1153, is still approximately seven percent below the all-time peak of AED 1233, registered in 2014. Given the momentum in volume, a new high in prices is certainly a possibility this year. It should be noted, however, that certain areas of the city and segments of the market, specifically, the ultra-luxury off plan apartment launches and ready luxury villa communities, have already been setting new price per square foot records. So, a trickle-down effect on the mainstream market is very much on the cards.

 

The most transacted areas for the month were Jumeirah Village Circle, Business Bay, Jumeriah Lakes Towers, Arjan, and Dubai Creek Harbor. Off-plan continues to dominate the market, albeit slightly, with 52 percent of the market volume concentrated in this segment. While sixty percent of the market activity was concentrated below the AED two million price range, the busiest price segment was between AED two and three million, with seventeen percent of market transactions taking place within this price range. Of the seventy districts tracked, forty-six saw positive price changes. While mature districts like Marina, Business Bay, Jumeirah Lakes Towers, The Palm, Emirates Living, and Arabian Ranches still dominate most of the volume and price charts, emerging districts like MBR City, Dubai South, Dubai Hills, and particularly Jumeriah Village Circle and Dubai Creek Harbor are steadily increasing in prominence.

 

Mega development land deals at Dubai Harbor, Business Bay, and Dubai Creek Harbor were also highlights of the month. A healthy and confidence-inspiring sign for the market. The month also saw residential sales prices at Royal Atlantis the Palm, the luxury hospitality and residential project located at the Palm of Jumeriah, reach close to AED 9000 per square foot. This brings luxury Dubai real estate prices in line with those commanded in the luxury districts of western and eastern capitals like London and Hong Kong, a much-awaited recognition of the superlative offerings of luxury Dubai real estate. As always, I look forward to serving your quest for Dubai real estate. Thank you.

 

Yours’s Sincerely

Dushyant