Report: 410 billion dirhams in real estate transactions in Dubai in 2023

The city of Dubai is in a state of constant upward trend in real estate prices, creating an excellent environment for both sellers and owners, according to the Bayut portal. This continuously increasing trend corresponds to the growing demand, which is supported by an influx of more investors and those looking to purchase housing, leading to unprecedented growth in the real estate market.

According to the Dubai real estate market report for 2023 published by the Bayut portal, last year saw 132,600 real estate transactions totaling 409.8 billion dirhams, including residential and commercial properties. The report indicated a significant increase in prices for apartments and villas in the most sought-after areas of Dubai, with price increases ranging from 4% to 21% in 2023.

According to the report, potential investors looking for affordable housing have shown increased interest in the international city, Dubai Residences Complex, Damac Hills 2, and Dubai Land, while middle-class buyers preferred areas such as Jumeirah Circle Village and Dubai Silicon Oasis. As for exclusive properties, the preferred areas were Dubai Marina, Business Bay, Arabian Ranches, and Dubai Hills Estate throughout 2023.

The report forecasts that these trends in the Dubai real estate market will continue until 2024, indicating that the dynamics of supply and demand are influencing price trends in UAE real estate. With limited supply in the market, especially in sought-after areas, the expected shortage of affordable properties is likely to drive prices up due to increasing competition among buyers.

As for the rental market, rental prices for low-cost apartments in the most popular areas have increased by 4-17%, demand for mid-range apartments has risen by almost 23%, and rental rates for luxury apartments have also increased by 4-21% in 2023.

Rental rates for luxury villas in Dubai have increased by 38%. Among those looking for affordable housing, the Nadd Al Sheba and Deira areas are in high demand for apartments, while Mirdif and Damac Hills 2 have become preferred options for villa rentals. In the mid-range segment, Jumeirah Village Circle (JVC) and Dubai Creek Harbour are the most popular among tenants.

It should be noted that most areas saw prices for villas and apartments increase by 5-11%, with the exception of Dubai South, where average villa sale prices decreased by 4%. Interestingly, rental prices for mid-range apartments and villas rose by up to 17%, while in the luxury segment, rental prices for apartments increased by 11-15%, and rental rates for luxury villas in Dubai Hills Estate went up by 26.4%.