There was a 13.2 percent decrease compared to the same period the previous year, bringing the total number of transactions to 9,034.
In November 2023, the Dubai real estate sector witnessed a significant change in residential transactions, registering a total of 9,034 transactions – reflecting a 13.2 percent reduction compared to the corresponding period in the prior year, as per the most recent CBRE’s Dubai Residential Market Snapshot.
This decline was primarily attributed to a substantial 26.4 percent decrease in off-plan sales. However, the secondary market exhibited a divergent trend, experiencing a 5.1 percent uptick in sales.
The year-to-date figures until November 2023 marked a historic peak, reaching 112,356 transactions.
Average prices and the trends in their growth.
Experiencing a robust 18.9 percent increase in average residential prices, the period up to November 2023 demonstrated a slight deceleration from the previous month’s 19.1 percent, emphasizing the enduring strength of Dubai’s real estate market.
Average apartment prices climbed by 18.3 percent, reaching AED1,374 per square foot, while average villa prices experienced a significant surge of 22.2 percent, reaching AED1,679 per square foot.
Despite the overall growth, average apartment sales rates continue to lag, remaining 7.7 percent below the peak levels of 2014. In contrast, average villa sales rates have seen a remarkable increase, soaring to 16.2 percent above the 2014 figures.
Key highlights in sales.
Jumeirah secured the top position in the apartment category, boasting the highest sales rate per square foot at AED2,497. Simultaneously, Palm Jumeirah took the lead in the villa segment, recording an impressive AED5,217 as the highest sales rate per square foot.
Moderation in the rental market
In the rental market, there was a moderation in growth, and average residential rents in Dubai experienced a 19.2 percent increase in the year leading up to November 2023, showing a slight decrease from the 19.7 percent recorded a month earlier.
The average annual rent for an apartment reached AED111,622, while for a villa, it reached AED324,835, with average apartment and villa rents rising by 19.6 percent and 16.6 percent, respectively.
Palm Jumeirah remained dominant in the rental landscape, having the highest average annual apartment rent at AED258,335, while Al Barari claimed the top spot in the villa segment with an average annual rent of AED1.2 million.
Key takeaways and market dynamics:
- Average prices saw an 18.9 percent increase year to November 2023.
- Average rents experienced a 19.2 percent increase year to November 2023.
- Price per sq. ft. stood at AED1,374 for apartments and AED1,679 for villas.
- Jumeirah and Palm Jumeirah had the highest sales rates for apartments (AED2,497/sq. ft.) and villas (AED5,217/sq. ft.), respectively.
- The top average rents were observed in Palm Jumeirah for apartments (AED258,335) and Al Barari for villas (AED1.2 million)
Trends in sales and rentals vary by region.
Palm Jumeirah and Jumeirah registered an average price per square foot that was twice the Dubai average, marking the highest figures.
The lowest price per square foot was documented in International City and Damac Hills 2, with JVC, Liwan, Discovery Gardens, Living Legends, and Dubai Silicon Oasis following suit.
