Dubai reports best-ever first quarter for property transactions
After registering its best-ever annual performance in 2022, Dubai’s property market continued to shine in Q1, 2023, with the sector reporting 29,323 property sales in the three months to March – its best first quarter performance on record.
According to data published by property analyst CBRE in its Dubai Residential Market Snapshot, March delivered the best month on record in terms of property transactions with 11,597 properties changing hands, representing a year-on-year (YoY) increase of 47.3%.
This remarkable performance was supported by a 96.1% YoY growth in off-plan market transactions and a 12.4% YoY increase in secondary market transactions.
By comparison, in February, total transaction volumes reached 8,515, a 43.9% increase from the previous year and the highest February figure on record. The growth was underpinned by a 78.1% increase in off-plan market sales, along with an 18.8% increase in secondary market sales.
More than 17,700 residential transactions were recorded in the year to date to February 2023, the most on record during the first two months of the year.
“The Dubai residential market has continued its record start to the year,” comments Taimur Khan, head of Research – MENA at CBRE.
Investor demand drives up average property prices
Strong investor demand also had a positive impact on property prices across the city, with average residential prices rising by 12.8% in the year through March 2023, while average apartment prices increased by 12.4% and average villa prices by 14.8% over the same period.
Meanwhile, average apartment prices stood at US$336 per square foot, and average villa prices stood at $396 per square foot.
While CBRE revealed average apartment sales rates were still 17.1% below the highs of 2014, several submarkets across the city were now posting sales prices above the benchmark set nine years ago. For example, average villa sales rates across Dubai have surpassed their 2014 highs and now sit 0.7% above this figure.
Jumeirah and Palm Jumeirah lead citywide performance
Jumeirah recorded the highest sales rate per square foot (US$664) in the apartment segment of the market, while Palm Jumeirah recorded the highest sales rate per square foot in the villa segment of the market, reaching $1,213.
Dubai’s average residential rents rose by 26.3% in the year to March 2023, with average apartment rents rising by 26.3% and average villa rents by 26.2%. As at March 2023, the average yearly apartment and villa rents have reached $27,517 and $81,967, respectively.
The highest average apartment and villa rents have been registered in Palm Jumeirah, where average rents reached $72,041 and $272,424 per annum, respectively.