Dubai’s residential transactions reach record-breaking count of 112,356 in November
Staff Report,
Dubai, UAE
November 2023 has witnessed the highest volume of residential transactions in the year to date, standing at a record-breaking 112,356. It reflects the strength of the booming Dubai real estate which largely contributes to the resilience of the UAE’s economy.
In November alone, the total number of residential transactions in Dubai stood at 9,034, down by 13.2 percent compared to the previous year. The slowdown is attributed to the fall of off-plan sales by 26.4 percent. However, secondary market sales registered an increase of 5.1 percent, according to Coldwell Banker Richard Ellis’ (CBRE) latest residential report.
Taimur Khan, Head of Research at CBRE, said, “The 2023 total has been bolstered by large portfolio transactions and delayed registrations in the last couple of months; however, we expect the number of transactions to continue to recede in the coming months. This is expected to be largely underpinned by decreasing levels of off-plan sales, understandably so with developers looking to deliver the somewhat significant quantum of recently launched projects.”
The cost of property in Dubai has increased moderately since November 2022. Apartment prices rose by 18.3 percent to Dh1,374 per square foot and average villa prices reached Dh1,679 per square foot up by 22.2 percent. Compared to the record-high 2014 figures, apartment sales rate are below by 7.7 percent, but average villa sales rate have exceeded by 16.2 percent.
Jumeirah registered the highest sales rate per square foot in the apartment segment of the market at Dh2,497. Palm Jumeirah, a prime location for high-end luxury property, registered the highest sales rate per square foot in the villa segment of the market at Dh5,217. Additionally, affordable property regions like Dubai Sports City and JVC showed minimal price increase.
Average rents exhibited slight inflation of 19.2 percent across apartments and villas in the year to November 2023. The average annual apartment and villa rents reached Dh111,622 and Dh324,835, respectively. The highest average annual apartment and villa rents were respectively seen in Palm Jumeirah, with average rents reaching Dh258,335, and in Al Barari, with average rents reaching Dh1,150,552.
The Dh528 billion-strong real estate in Dubai will end the year on a high note, signifying a promising start in 2024. The surging demand for luxury property will see top developers launching unique projects for High-Net-Worth Individuals (HNWI). High-quality affordable residences will remain as a focus for developers targeting middle-class buyers, especially families.
Ends
Also read: Decrease in off plan sale brings secondary market into the limelight: CBRE
