Executive Newsletter – April 2023
The booming UAE real estate market continues to offer strong returns.
In the month of April 2023, Dubai has recorded the strongest month, in terms of both sales volume and value. It was considered the best performing month of April on record over the last 10 years.
The total sales volume recorded more than 8,000 transactions, which has increased over 16% compared to April 2022. The total sales value reached over AED 26 Billion, an increase of 46% compared to April 2022. The average price per square foot is up to AED 1,280 per sq.ft., which is the highest on record for the month of April over the last 5 years.
On the mortgage side, there was a surge in mortgage transactions, with a nearly 50% increase in the value (April 2023) compared to April 2022. The number of transactions have increased by 33% compared to April 2022. The top performing areas by demand were Jumeirah Village Circle, Dubai Marina, Business Bay, Dubai Hills Estate and Dubai Creek Harbour.
In Abu Dhabi, the sales volume in Q1 2023 increased by more than 40% compared to Q1 2022. The total sales value reached above AED 13 billion, which was three times higher compared to Q1 2022. Q1 2023 recorded average sales price per square foot for affordable apartments and villas decreased by 16%. Meanwhile, the price for luxury properties increased by 13%.
Sharjah exhibited remarkable activity in the real estate sector. Statistics suggest that the total number of real estate transactions in the first quarter of 2023 is over 21,000 transactions, with a total value of AED 5.9 billion. That is an increase of 12.5% in sales transactions compared to last year. Furthermore, the total value of real estate mortgages amounted to AED 1.7 billion. Sharjah’s sales price index increased 8.73% y-o-y. Meanwhile, the rental price index decreased -5.81% y-o-y.
In Ajman, the real estate sector maintained its positive rates and achieved exceptional results. The number of real estate transactions during the first quarter of this year amounted to 2,630 real estate transactions, with a total value of 3.4 billion dirhams, achieving a growth of 6.25% compared to the same period in 2022. Ajman Sales Price Index increased 1.75% y-o-y while Rental Price Index increased 1.48% y-o-y.
In Ras Al Khaimah, there was a slight decrease of 7% in the sales value during March 2023 compared to March 2022. The total sales transactions increased by 5% compared to March 2022. Ras Al Khaimah Sales Price Index increased 20.97% y-o-y while Rental Price Index increased 4.63% y-o-y.
We continue to envision the real estate market prospering over the years, given increased demand following from tourism, investor opportunities and benefits, infrastructural developments, and increased transparency of the property market.