The Dubai real estate sector has ongoing momentum, despite slowing down in some fields said industry expert Asteco.
The full-service real estate company’s Q3 2023 real estate report shows that there has been a moderate decline in the supply of new residential units, a gradual moderation in rental rate growth and a deceleration in the increase of property prices.
Despite this, Asteco reports Dubai’s real estate landscape remains marked by an ongoing momentum, defined by a continuous stream of new project launches.
Dubai real estate Q3 report
This growth is attributed by increasing housing demands across diverse segments of the population and supported by proactive government initiatives geared towards fostering the expansion of the real estate sector.
Despite ongoing global uncertainties over inflation, interest rates, climate issues, conflicts and technological advancements, the Dubai property market is poised for a robust end to 2023, said Asteco.
In Dubai almost 6,250 residential units were delivered in Q3 2023, including 4,700 apartments and 1,850 villas.
Although this signifies a moderate decline compared to previous quarters, it remains a substantial volume.
It is anticipated that more than 130,000 new dwellings would be delivered in the next three to four years.
The rental landscape continues to offer growth potential for specific developments and areas.
The market has seen a gradual moderation in rental rate growth. Asteco’s data reveals a definite slowdown, with rental gains at 3 per cent, 2 per cent, and 4 per cent for apartments, villas, and offices over the three-month period.
On an annual scale, the changes stood at 18 per cent, 19 per cent and 29 per cent respectively.
The market has witnessed a surge in the availability of new holiday homes. According to the latest data from the Dubai Department of Economy and Tourism, there has been a substantial 45 per cent year-on-year increase in the number of registered holiday homes in Dubai, as of March 2023.
In the sales market, average sales price growth continued to decelerate, with quarterly increases of 1 per cent for apartments, 2 per cent for villas and 3 per cent for offices. On an annual basis, these changes stood at 12%, 14% and 19% respectively.
Rising demand for office space is likely to usher in new commercial launches in the foreseeable future.
The handover of Uptown Tower, a 500,000 sq ft Grade A development in Jumeirah Lakes Towers (JLT), presents a significant milestone.
Additionally, the impending delivery of Innovation One in Dubai International Financial Centre (DIFC) further underscores the market’s dynamism.
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