Dubai Property Price in 2023: leading Year
In 2023, the Dubai real estate market surpassed all expectations with 132,628 sales transactions totaling AED 409.8 billion. This is a significant boost over the previous year, highlighting the market's strength and attractiveness.
The rising trend in property prices was evident in the luxury, mid-tier, and low-cost segments, reflecting the wide range of investment options.
Key Highlights
- The volume of transactions was 132,628 transactions, which demonstrates a flourishing market.
- Sales Value: AED 409.8 billion, indicating strong investor confidence.
Affordable Apartments: A Surge in Demand
The affordable apartments segment saw a significant rise in the cost of property in areas like International City leading the way.
The price per square foot for apartments in International City surged by 15.5%, averaging AED 583. The median price for transactions in the region was AED 383.2k, which was a 5.22 percent boost.
Popular Areas for Affordable Apartments
- International City: Top choice for investors, boasting an average return of 8.10 percent.
- Dubai Residence Complex: Recorded a 7.32% increase in price per square foot.
- Dubai Production City attracted buyers thanks to the 9.18 percent boost in the price.
Transition to Mid-Tier Apartments
In the middle tier, Jumeirah Village Circle (JVC) was deemed to be a top-rated district. The price-per-square-foot for flats in JVC recorded a 7% uptick, averaging AED 1,016. The average price of transactions in the region was AED 691.7k, representing the equivalent of a 2.75 percent rise.
Key Mid-Tier Areas
- Jumeirah Village Circle: Remained an investment favorite for investors, with a return on investment of 8.48 percent.
- Dubai Silicon Oasis has a solid ROI of 9.07 percent.
- Jumeirah Lake Towers is experiencing an 11.8 percent boost in price.
Luxury Apartments: A Magnet for Investors
Dubai Marina remained the most sought-after location for luxury apartment sales. The cost per square foot of apartment units within Dubai Marina increased by 9.16 percent, with an average of 1,737. The average price of transactions increased by 16.6 percent to AED 1.88M.
Popular Luxury Areas
- Dubai Marina: Offered promising rental yields of 7.15 percent.
- Business Bay: The company saw a 14.3 percent rise in the price for each square foot.
- Downtown Dubai attracted considerable investor interest due to a 10.2 percent price boost.
Affordable Villas: Rising Popularity
DAMAC Hills 2 maintained its reputation as the most popular option for villas on a budget. The cost per square foot of homes in DAMAC Hills 2 grew by 10.7 percent and averaged AED 743. The average value of the transaction was AED 1.35M, which is a 0.54 percent improvement.
Critical Areas for Affordable Villas
- DAMAC Hills 2: Offered an ROI of 6.68%.
- Dubailand was hit with a 14.2 percent improvement in square foot cost.
- Dubai South: Attracted buyers through competitive pricing.
Transition to Mid-Tier and Luxury Villas
The luxury and mid-tier segments also experienced significant growth. Regions such as Arabian Ranches and Dubai Hills Estate continued to draw wealthy individuals looking for large living spaces.
Mid-Tier and Luxury Villa Highlights
- Arabian Ranches: Known for its top amenities and its strategic location.
- Dubai Hills Estate: Offers lavish living with high-quality yields.
Dubai Property Price in 2024
The first quarter of 2024 has proved remarkable for Dubai's real estate market. The market witnessed 43,075 transactions for ready commercial and residential properties worth AED 122.9 billion.
This intense activity demonstrates the market's appeal to international and local investors.
Key Highlights
- The volume of transactions is 43,075 transactions, which reflects continued market activity.
- Revenue Value is AED 122.9 billion, which indicates the confidence of investors.
Affordable Apartments: A Steady Rise
The segment of affordable apartments has seen a rise in interest in the last few years, with International City leading the charge.
The cost per square foot of apartments in this neighborhood increased by 7.86 percent, making it an ideal option for those looking to save money.
Popular Areas for Affordable Apartments
- International City: Maintained a high ROI of 8.37 percent.
- Dubai South: Despite a 13.5 percent drop in transaction costs, It remains a trendy option.
- Dubai Production City (IMPZ) has the highest return on investment in this sector at 8.89 percent.
Transition to Mid-Tier Apartments
Jumeirah Village Circle (JVC) continued to dominate the mid-tier apartment market, with a price-per-square-foot increase of up to 12%. This area is desirable due to its central position and facilities.
Key Mid-Tier Areas
- Jumeirah Village Circle: Offered an ROI of 8.65%.
- Jumeirah Lake Towers was the site of an impressive rise in transaction value.
- Dubai Silicon Oasis: Provided the highest ROI in the middle-tier market at 9.28 percent.
Luxury Apartments: A Magnet for High-End Investors
Dubai Marina retained its allure for luxury apartment seekers, with a price-per-square-foot appreciation of up to 7%. The area continues to draw wealthy individuals who want luxurious living areas.
Popular Luxury Areas
- Dubai Marina: Delivered an ROI of 6.82%.
- Business Bay: Experiencing the 14.3 percent rise in square foot costs.
- Downtown Dubai is a popular option for investment in luxury.
Affordable Villas: Rising Popularity
DAMAC Hills 2 emerged as the preferred choice for affordable villas, with a price-per-square-foot increase of 6% to 17%. The area is a mix between affordability and high-quality living.
Critical Areas for Affordable Villas
- DAMAC Hills 2: Provided an ROI of 6.97%.
- The Valley of Emaar reported the most significant price increase.
- Dubailand: Attracted diverse investor interest.
Transition to Mid-Tier and Luxury Villas
Jumeirah Village Circle and Arabian Ranches were famous for luxury and mid-tier villas. These locations offer large living spaces and a high return on investment.
Mid-Tier and Luxury Villa Highlights
- Jumeirah Village Circle: The highest price increases were reported in the middle-tier segment.
- Arabian Ranches: Led the luxurious villa market by a significant price rise.
Conclusion
The property prices in the last ten years provide essential insight into the market trends for real estate in Dubai.
These patterns will determine Dubai's real estate investment outlook for the next ten years. The historical data analysis shows potential changes or opportunities in the residential real estate market.
Dubai real estate prices have increased steadily over the past ten years, with an average annual growth between 3% and 10%. Luxury residential properties had the most growth, with an average of 10% per year.
Commercial properties saw moderate growth, which averaged 5 percent per year. In times of economic turmoil, price drops could reach 15 percent. Foreign investment drove up prices and contributed 30 percent of real property transactions.
