March 2023 Dubai Real Estate Market Update
Sales Transactions Highlights
Highest Q1 ever recorded, with a total of 30,931 real estate sales transactions in Q1 2023
March was the second highest month in sales volume ever recorded with 12,157 sales transactions
44.74 percent increase in total sales volume and 51.14 percent increase in total sales value year-on-year
Off-plan market is thriving with a 55 percent increase month-on-month and 106 percent increase year-on-year in sales volume
March took the Dubai real estate market by storm, with a total of 12,157 sales transactions according to the Dubai Land Department open data platform. This is a 44 percent increase year-on-year for sales volume and a 51 percent increase for sales value when compared to March 2022. It was also the second highest month in sales volume ever recorded, with June 2009 still holding the title.
March’s impressive numbers also pushed Q1 2023 as the highest Q1 ever recorded with a total of 30,931 sales transactions, which is a 6.72 percent increase quarter-on-quarter when compared to Q4 2022.
To break March down further, 43 percent of the sales transaction were in the secondary/ready market with 5,265 sales transactions worth AED 18 billion and 57 percent were in the off-plan market with 6,892 sales transactions worth AED 14 billion. It is also notable to mention that the off-plan market is thriving for both sales volume and value, with a 55 percent increase month-on-month and 106 percent year-on-year increase in volume. There were 1,960 mortgage registrations in March worth AED 13.3 billion.
The top five areas for sales in March were JVC, Dubai Marina, Business Bay, Dubai Creek Harbour and Dubai Hills Estate. The overall, average sales price in March for an apartment was AED 1.16M while the average price for a villa was AED 2.24M.
Despite the recent increase in interest rates and the continued global economic turmoil, the Dubai real estate market still hasn’t flinched as it continues to flourish. We continue to see an influx in foreign direct investment and new residents moving into Dubai due to the abundance of initiatives and incentives offered by the government. This coupled with a strong and lucrative job market, affordability compared to other major cities around the world and new developments launched with planned mega cities and attractions, continues to attract and lure many into our city. Over the last few years this seems to be the consistent story, the city has grown significantly, and Dubai has been brought forward and center into the international real estate limelight. Despite another expected, and quite frankly, inevitable interest rate rise in May, I believe the Dubai market will continue to sail forward, not greatly moved by the global macroeconomic dynamics. While residents are affected the most by rising cost of mortgage rates and overall cost of living, the high-net-worth drivers in the Dubai real estate market will continue to move forward unscathed.
EJARI Rental Transactions Highlights
In March, there were a total of 55,439 EJARI rental transactions in Dubai according to the Dubai Land Department open data platform of which 25,476 were in the freehold areas while 29,963 were in the non-freehold areas. Of the total rental transactions, 41,848 were residential rental contracts and 13,286 were commercial contracts, while 25,885 contracts were renewals and 29,554 were new transactions. To break it down further, 51,259 rental transactions were in units and 3,274 were villas.
The top areas for rental transactions in March were Jabal Ali First, Al Warsan First, Business Bay, Al Barsha South Fourth and Al Barsha First. The overall, average rental price in March for an apartment was AED 140,500 and AED 171,400 for a villa.