Market experiences significant growth with 36.7% increase in transactions
Dubai residential transactions hit new record highs in the first 11 months of this year despite a decline in off-plan sales in November due to a slight moderation in price growth.
In November, however, total residential transactions in Dubai amounted to 9,034, down 13.2 percent from a year earlier. CBRE it said in its Dubai Residential Market Outlook, December 2023.
“This slowdown in activity levels has been driven by a 26.4 per cent drop in off-plan sales, while secondary market sales recorded an increase of 5.1 per cent. So far this year until November 2023, the total transaction volume reached 112,356. This is the highest level recorded to date.”
“Dubai’s residential market continues to expand its record total, with 112,356 transactions completed so far this year through November 2023. This represents an increase of 22.5 per cent on the full-year 2022 total.”
saying Taimur Khan, Head of Research – Mena at CBRE.
In the first nine months, Dubai’s real estate market saw significant growth with a 36.7 percent increase in transaction value and a 33.8 percent increase in the number of transactions compared to the same period in 2022. Attributing this growth to the city’s global reputation, robust infrastructure and its leadership’s commitment to development, the Dubai Land Department reported 116,116 real estate transactions valued at Dh429.67 billion during this period. Real estate investments also experienced steady growth: 81,669 investors registered 109,186 investments for a total of Dh278.7 billion, an increase of 50.3 percent in value, a 33.3 percent increase in the number of investments and a 37.4 percent increase in the number of investors.
According CBRE, Dubai’s residential market has begun to experience a slight moderation in price growth, where in the year to November 2023, average prices grew by 18.9 percent, up from 19.1 percent in the previous month . During this period, average apartment prices increased by 18.3 percent and average villa prices by 22.2 percent. In November 2023, average apartment prices reached Dh1,374 per square foot and average villa prices reached Dh1,679 per square foot. These average apartment sales rates are still 7.7 percent below the all-time highs recorded in 2014, although several submarkets have far exceeded their comparable 2014 figures. Average villa sales rates are currently at 16, 2 percent above 2014 levels.
Jumeirah recorded the highest sales rate per square foot in the apartment segment of the market at Dh2,497, while Palm Jumeirah recorded the highest sales rate per square foot in the villa segment of the market at Dh5,217.
In the rental market, Dubai continued to witness a moderation in the growth rate, where in the year to November 2023, average residential rents in Dubai grew by 19.2 percent, up from 19.7 percent in the last month. During the same period, average rents for apartments and villas increased by 19.6 percent and 16.6 percent, respectively. The average annual rent for apartments and villas reached Dh111,622 and Dh24,835, respectively. The highest annual average rents for apartments and villas were respectively observed in Palm Jumeirah, with average rents reaching Dh258,335, and Al Barari, with average rents reaching Dh1,150,552, according to the report.
“This year’s total has been driven by large portfolio transactions and delayed registrations in recent months; However, we expect the number of transactions to continue to decline in the coming months. This is expected to be largely supported by declining levels of off-plan sales, which is understandable as developers look to deliver a somewhat significant number of recently launched projects. In turn, we expect this slowdown in transaction volume to continue to support the moderation in the rate of price and rent growth.”
News Source: Khaleej Times