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Dubai’s residential transactions reach new record highs in 2023

A total of 132,628 sales transactions, collectively valued at AED 409.8 billion took place during 2023, revealed Bayut’s Dubai Sales Market Report 2023

The Dubai property sector has maintained its commendable growth trajectory, concluding 2023 on a high note

2023 has been an absolutely incredible year for the Dubai real estate market and the numbers speak for themselves. Throughout the year, a staggering 132,628 sales transactions took place, totalling a mind-blowing USD 111 billion (AED 409.8 billion). In fact, in the third quarter alone, we saw a record-breaking ≈ USD 27 billion (AED 100 billion) worth of transactions. Hence, it would not be wrong to say that this property boom is not a fleeting trend, my friend – it’s here to stay for 2024 and beyond!

What’s even more impressive is that this surge in sales is a testament to Dubai’s market strength and desirability. There’s been an increase in demand, and it’s all thanks to a combination of factors. Firstly, the city’s robust economic recovery has been a game-changer. And let’s not forget the attractive investment opportunities this place has on offer. These factors, combined with the influx of both local and international investors, have truly set Dubai on fire.

Dubai Marina retained its position as the preferred destination for luxury apartment sales in 2023

The most preferred destinations for luxury apartments in 2023

Based on Bayut’s Dubai Sales Market Report 2023, Dubai Marina retained its position as the preferred destination for luxury apartment sales. The price-per-square-foot for apartments for sale in Dubai Marina saw an increase of 9.16%, averaging ≈ USD 472 (AED 1,737). Sales history for apartments in Dubai Marina indicated a surge of 16.6% in the sales transaction value, reaching an average of AED 1.88M in 2023. On average, buyers paid around AED 1.46M for 1-bedroom apartments, AED 2.38M for 2-bedroom units, and AED 3.8M for 3-bedroom flats in Dubai Marina.

Prospective buyers also expressed interest in luxury apartments in Business Bay. The sales price-per-square-foot for flats in Business Bay witnessed an increase of 14.3%, averaging USD 501.36 (AED 1,841) in 2023. Historical data for apartment sales in Business Bay revealed a 3.87% increase in the transaction value, which averaged AED 1.48M during 2023. Flats for sale in Business Bay averaged AED 1.44M for 1-bedroom units, AED 2.31M for 2-bedroom layouts, and AED 3.35M for 3-bedroom configurations.

The annual report also highlighted significant investor interest in Downtown Dubai luxury properties. The price-per-square-foot for apartments in the area increased by 10.2% to an average of USD 719 (AED 2,637).

Areas with high ROI for luxury apartments in 2023

As per the insights shared in Bayut’s report, Al Sufouh notably distinguished itself in terms of projected rental yields, averaging an impressive 10.3%. The Green Community and Jumeirah Golf Estates districts, also presented high projected ROIs of 9.32% and 8.06%, respectively. Dubai Marina also offered promising rental yields of 7.15%. Additionally, Business Bay and Downtown Dubai exhibited alluring potential ROIs of 6.60% and 6.56%, respectively.

Arabian Ranches: An attractive option

In 2023, luxury investors in Dubai displayed considerable interest in Arabian Ranches. The sales price-per-square-foot for villas in Arabian Ranches experienced an increase of 9.15%, averaging USD 377 (AED 1,387). According to the sales history for villas in Arabian Ranches, there was a notable 12.2% increase in the average transaction value, which stood at AED 5.54M in 2023. For those interested in buying villas in Arabian Ranches, the average prices were around AED 6.31M for 4-bedroom houses, AED 8.63M for 5-bedroom villas and AED 13.2M for 6-bedroom units.

Villa properties in Dubai Hills Estate recorded an uptick of 20.5% in the average price-per-square-foot, which stood at AED 1,905 in 2023

Living the ‘villa’ life

Investors also directed their attention to Dubai Hills Estate for luxury villa acquisitions. Villa properties in Dubai Hills Estate recorded an uptick of 20.5% in the average price-per square-foot, which stood at USD ≈518 (AED 1,905) in 2023. The historical data for villa sales in Dubai Hills Estate reported a 14.2% increase in the average transaction value, averaging AED 7.32M. The prices for sale villas in Dubai Hills Estate averaged AED 5.57M for 4-bedroom units, AED 9.92M for 5-bedroom villas, and AED 28.9M for 6-bedroom units.

Prospective buyers seeking luxury villas in Dubai also explored properties in DAMAC Hills. The average price-per-square-foot for villas for sale in DAMAC Hills reported an increase of 12.7%, averaging USD ≈344 (AED 1,266).

Areas with high ROI for luxury villas in 2023

According to the report, Pearl Jumeirah and DAMAC Hills boasted high projected rental yields of 7.61% and 7.08%, respectively. Sustainable City recorded average rental yields of 6.94%. Other than DAMAC Hills, Arabian Ranches offered a potential ROI of 5.55%, while Dubai Hills Estate registered an average ROI of 5.53%.

Commenting on the findings, Haider Ali Khan, CEO of Bayut and Head of Dubizzle Group MENA says, “The Dubai property sector has maintained its commendable growth trajectory, concluding 2023 on a high note. Our data reveals sustained progress in property prices, driven by heightened demand from investors and residents wanting to own property in this promising market. There are notable upticks in sales prices across various segments, reflecting the appeal of Dubai’s real estate landscape.”

“The impressive total of property sale transactions in 2023, amounting to close to AED 410 billion, solidifies the robustness of the market. We believe that the heightened demand for properties is expected to increase this year, owing to the launch of various new primary projects attracting a lot of investors from across the globe,” concludes Khan.