Dubai sets new all-time record for property transactions
Dubai’s property market has continued its record-breaking surge, with the sector reporting a new benchmark of 87,163 property transactions in the first nine months of 2023.
According to the CBRE UAE Residential Market Review Q3 2023, this is the highest figure ever recorded during this period, with off-plan transactions increasing by 55.3% and secondary market transactions increasing by 19.0%.
In terms of market valuation, residential prices increased by 19.6% in the year to September, with apartment and villa prices rising by 19.7% and 18.9%, respectively.
Despite these gains, the city’s rental market is showing signs of moderation, with average residential rents growing by 20.6%, a slight decrease from the 21.7% growth seen a month earlier.
In terms of supply, approximately 27,095 residential units have been delivered to date this year, with Meydan One, Downtown Dubai, and Business Bay dominating the mix in terms of most active precincts, according to CBRE. An additional 34,651 units are anticipated to be handed over before the end of the year.
Looking ahead, CBRE predicts sale prices will continue rising in both apartment and villa market segments, albeit at a slower pace than earlier in 2023.
“Strong performance continues to be seen in the UAE’s residential market in the third quarter of the year,” commented Taimur Khan, Head of Research – MENA at CBRE.
“The elevated levels of activity, paired with the lack of upcoming stock, is likely to continue to drive price growth moving forward. On the rental front, the number of tenancy contracts registered in Dubai increased significantly, although the growth rate of average rents within the city has been moderating since the beginning of the year. In Dubai, rents will continue to increase, however, not at the same pace.”