Dubai’s real estate market booms in Q1 2023 with record transactions
01 May 2023, Construction Week Online
Dubai’s real estate industry is booming, registering record quarterly and monthly sales reports in March 2023, according to data collected by Unique Properties.
The first three months of the year saw a total of 29,323 real estate transactions, with an unprecedented 11,597 units registered in March alone. These figures represent real estate records in the city, and the quarterly figure is 47.3% higher than the previous year, supported by a 96.1% growth in off-plan transactions, alongside a 12.4% increase in secondary market transactions.
The surge in demand has led to an increase in the cost of living, with average residential prices in Dubai increasing by 12.8% in the year through March 2023. Average apartment prices have increased by 12.4%, while average villa prices have increased by 14.8% over the same period.
The more luxurious areas in Dubai have witnessed the most significant growth in volume, with Jumeirah recording the highest sales rate per square foot in the apartment segment of the market, reaching AED2,441, while Palm Jumeirah has recorded the highest sales rate per square foot in the villa segment of the market, reaching AED4,457.
According to Arash Jalili, Founder and CEO of Unique Properties, off-plan sales have been the leading catalyst for this historic performance, and he expects to maintain and even exceed the total number of units generated for the upcoming months.
The increase in demand has affected the overall cost of living for residents, and most of the sales registered were in the more expensive areas, with ultra-luxury properties being the preferred choice for High Net Worth Individuals (HNWIs). Dubai continues to be an attractive investment option for HNWIs, which has led to a huge influx of them in recent years.
Dubai has been ranked as one of the top choices for expatriates to live in, thanks to various factors such as tax benefits, a stable economy, quality of life, outstanding healthcare, and education, among others.
A recent report by Knight Frank sheds light on another factor for why Dubai’s real estate industry has been booming through its “Dubai’s Branded Residential Market – 2023,” highlighting a total of AED25.4bn in sales generated from its branded residences with an estimate of 2,000 more units to be provided in 2023.
The branded residential market has been growing at an impressive rate, providing an 80% year-on-year growth in comparison with the previous year, with 62% of these units being sold in the off-plan market.
One of the most recent ultra-luxury units registered earlier this year was the Bulgari Lighthouse development that sold for AED410m. The huge 38,970 sq. ft. penthouse is located in the Jumeirah Bay Island development and includes more than 13,000 sq. ft. of balcony and terrace space.