Brief Report on Dubai’s Real Estate Market for January 2023

The real estate market in Dubai has been steadily improving over the last few years, and January 2023 was no different. This past January, the UAE property market experienced a remarkable surge in activity, with the total number of transactions reaching the 10,000 mark and the total sales value reaching an impressive AED 28B. This is an impressive 70% increase when compared to January of 2022, making it the highest-performing month of January in recent memory.

Investors are highly interested in purchasing apartments, as the number of apartment sales in the month of January 2022 rose significantly. Compared to the previous year, there were more than 7,400 transactions. Additionally, 15.5 billion AED was spent by people in Dubai on purchasing apartments, both new apartments that are still under construction (off-plan) and apartments that are already built (ready units).

That said, let's delve into the January 2023 report, talking about how it compares to previous months and years.

Mortgages

This January, there was a massive jump of 150% in value on mortgages compared to January 2022. In fact, the amount of mortgages taken out has more than doubled. This suggests that many more people are buying homes rather than just renting them. This could be a sign of a booming real estate market.

Price and Transactions Differences

The cost per square foot in January is greater than ever before, reaching a peak of AED 1,313. Price-change-wise, across off-plan and ready apartments and villas, an average of 20% increase can be found since January 2022. The only exception here is with ready apartments, in which it's with the only exception of a drop of 5% for ready apartments.

For a transaction breakdown compared to January 2022, over 7,000 properties were sold, which was nearly a 100% increase. As for villa transactions, almost 1,800 were sold, up by around 8%. As for plots, 350 were sold, which was a 67% jump. Finally, 300 commercial property transactions happened, a 65% increase.

Top Performing Places

Most real estate transactions are off-plan, outnumbering completed property transactions by a wide margin. This accounts for nearly 60% of all real estate transactions. Business Bay was the most successful area for both new and existing apartments, with most sales of new villas being made at the Damac Lagoons development.

Apartment-wise, Business Bay sold the most at 645 transactions. Meanwhile, the title for most ready apartments sold is held by the Dubai Marina at 338 transactions. For Villas, Damac Lagoons holds 552 off-plan apartment transactions, while Damac Hills 2 tops at 80 transactions performed for ready apartments. Finally, as for off-plans commercial properties, MBR city experienced 15 transactions, while Business Bay experienced 82 transactions for ready commercial properties.

Rent Price Changes

Rent prices in the city center of Dubai have grown significantly since the beginning of the year. This has prompted investors to be more active in the market, while renters can either renew their current accommodation or purchase a home. For brand-new rental contracts, the costs have gone up by around AED 25K annually compared to those who are renewing.

Property Sales Volume by Price Range

Around 6,000 properties were sold in Dubai during January, with the majority of them (60%) having a sale price of up to 3 million AED. Additionally, 8.5% of these transactions were for properties costing more than 5 million AED, demonstrating an increasing trend in the luxury property market in Dubai.

Conclusion

Overall, the real estate market in Dubai has seen an uptick in activity since the beginning of the year. As you can see, most of the numbers above show a positive trend, and this is only believed to continue as the year passes by. So, what are you waiting for? Make the move today and invest in a Dubai property to get the most out of your investment!

Dacha Real Estate is a top property agency in Dubai, offering quality real estate for lease and sale, ensuring top client services that promise success. If you are looking for a Dubai real estate company to help you with your transactions, contact us today.