In November 2023, the Dubai real estate market experienced a notable shift in residential transactions, marking a total of 9,034 transactions – a 13.2 percent decrease compared to the same period in the previous year, according to the latest CBRE’s Dubai Residential Market Snapshot.
This decline was primarily driven by a substantial 26.4 percent drop in off-plan sales. However, the secondary market saw a contrasting trend with a 5.1 percent increase in sales.
The year-to-date figures until November 2023 recorded a historic high of 112,356 transactions.
Average prices and growth trends
The year to November 2023 witnessed a robust 18.9 percent increase in average residential prices. Although this figure represents a slight deceleration from the previous month’s 19.1 percent, it underscores the overall strength of Dubai’s real estate market.
Average apartment prices grew by 18.3 percent, reaching AED1,374 per square foot, while average villa prices surged by 22.2 percent, reaching AED1,679 per square foot.
Despite the overall growth, average apartment sales rates remain 7.7 percent below the peak levels of 2014. Conversely, the average villa sales rates have soared to 16.2 percent above the 2014 figures.
Key sales highlights
Jumeirah claimed the top spot in the apartment segment with the highest sales rate per square foot at AED2,497. Meanwhile, Palm Jumeirah led the villa segment, registering the highest sales rate per square foot at an impressive AED5,217.
Rental market moderation
In the rental market, a moderation in growth was observed, with average residential rents in Dubai increasing by 19.2 percent in the year to November 2023, a slight dip from the 19.7 percent recorded a month earlier.
Average apartment and villa rents rose by 19.6 percent and 16.6 percent, respectively. The average annual rent for an apartment reached AED111,622, while for a villa, it reached AED324,835.
Palm Jumeirah dominated the rental landscape with 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: 18.9 percent increase in average prices year to November 2023.
- Average rents: 19.2 percent increase in average rents year to November 2023.
- Price per sq. ft.: AED1,374 for apartments and AED1,679 for villas.
- Highest sales rates: Jumeirah for apartments (AED2,497/sq. ft.) and Palm Jumeirah for villas (AED5,217/sq. ft.).
- Top average rents: Palm Jumeirah for apartments (AED258,335) and Al Barari for villas (AED1.2 million).
Sales and rental trends by area
Palm Jumeirah and Jumeirah recorded the highest average price per square foot with numbers doubling the Dubai average.
The least price per square foot was recorded in International City and Damac Hills 2 followed by JVC, Liwan, Discovery Gardens, Living Legends and Dubai Silicon Oasis.
Follow us on
