Dubai real estate prices surge 52% YoY in August 2023

German nationals constituted 6 percent of total sales transactions for the month.

UK nationals remained dominant at 22 percent, followed by India at 12 percent, and Lebanon and Russia, each contributing 6 percent to the market.

Dubai market attracting global investors

German buyers showed a clear preference for properties in Jumeirah Village Circle (JVC), representing 25 percent of the total transactions in the area.

Within JVC, 32 percent of apartment sales were in the price range of AED750,000 to AED1 million, closely followed by 27 percent of transactions ranging from AED2 to AED3 million.

These preferences primarily reflect the purchasing patterns of German nationals. Jumeirah Golf Estates was the second most preferred area among German buyers, contributing to 16 percent of the total sales in that region.

A majority of these transactions took place within the secondary sales market, indicating the continued interest of German buyers in Dubai’s real estate.

“We expect more activity in the Dubai real estate market in Q4 of 2023, as Germany and other nations seek opportunities in this diverse and dynamic market,” Lewis Allsopp, CEO of Allsopp & Allsopp, said highlighting Dubai’s appeal as an economic hub capable of drawing attention from countries like Germany, which is currently facing its most significant crisis in decades.

In the initial six months of 2023, there has been a notable 27 percent decrease in the issuance of apartment building permits, subsequently resulting in insolvency declarations from multiple property development firms in Germany, the report noted.

Potential buyers are reluctant due to their perception of the market being expensive, although local assessments expect a reduction of over 5 percent in property values during 2023 in Germany, with an outlook of stability in 2024, Allsopp & Allsopp said.