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Dubai’s Real estate Performance in April 2023

The real estate sector in Dubai stands as an epitome of global recognition, boasting a collection of state-of-the-art, luxurious, stunning, and extravagant properties. This reputation serves as an irresistible magnet, drawing investors from every corner of the world to partake in Dubai’s real estate market and bask in the remarkable benefits it offers. With an unparalleled return on investment (ROI) of 7-8%, the highest in the world, Dubai continues to solidify its position as a highly lucrative destination for discerning investors seeking remarkable financial gains. 

The month of April 2023 witnessed yet another testament to the city’s thriving property market, as it achieved unprecedented milestones and embarked on a trajectory of continuous evolution, marked by the introduction of groundbreaking, one-of-a-kind developments. From visionary skyscrapers to breathtaking waterfront residences, Dubai showcases an extraordinary commitment to excellence, elevating the standards of luxury living to new heights. Moreover, the prevailing governmental policies and initiatives lend substantial support to the real estate market’s prosperity. 

Real estate transaction in April 2023

Dubai’s real estate sector has demonstrated its resilience and attractiveness which is evidenced by the remarkable figures recorded in April 2023. According to DXB Interact, in April 2023, the total volume of residential transactions increased by 16% compared to April 2022 to reach an impressive 8,050 transactions worth AED 26.4 billion.  

Apartments dominated with 6,175 sales worth AED 11.4 billion, followed by 1,315 villa sales worth AED 5.5 billion. Commercial transactions amounted to 254 sales worth AED 400.8 million, while plots accounted for 306 sales worth AED 9.1 billion

Going by total property sales value by category, Apartments held the largest share at 43%, indicating their popularity and demand in the market. Plots followed closely behind, accounting for 34% of the sales, showcasing the interest in land investments. Villas constituted 21% of the total property sales, reflecting their appeal to a specific segment of buyers seeking a luxurious living. Commercial properties represented a smaller portion, comprising only 2% of the total sales. These percentages highlight the varying preferences and investment choices of buyers in Dubai’s real estate market. These figures highlight the demand for urban living, luxurious villas, and investment opportunities. Dubai’s real estate market remains vibrant and attractive to both local and international investors.

In April 2023, the Dubai real estate market experienced a significant shift compared to April 2022. The number of apartments sold increased by an impressive 36.8%, reflecting a growing interest in urban living. However, the number of villas sold declined by 28.7%, indicating a shift in preferences among buyers.  Commercial property sales, on the other hand, surged by 11.4%, demonstrating the resilience of the business sector. In contrast, the number of plots sold decreased by 13.6%, suggesting a slight slowdown in land transactions. Overall, these trends highlight the enduring confidence and trust of investors and homeowners in Dubai’s property market.

Off-plan Property Sales Transactions Increased by 27%

According to DXB Interact, there was a 27% increase in Off-plan property transactions in April 2023 compared to the same month the previous year.  There were 4,251 Off-plan property transactions that took place in April 2023 worth AED 10.17 billion. This includes 3,477 apartments worth AED 6.8 billion, 749 villas worth AED 2.6 billion, and 25 Commercials worth AED 77.1 million.

The number of apartments sold in April 2023 increased by 67.3% compared to April 2022 while the number of Villas sold decreased by 40.3%. There was a 66.7% increase in the Commercial sold in April 2023 compared to the same month the previous year.

The prices for Off-plan apartments were AED 1.2 million in April 2023 which was a reduction of 3.7% compared to April 2022 while the prices for Off-plan villas in April 2023 were AED 2.4 million – an increase of 31.4% compared to April 2022. The prices for Commercials in April 2023 were AED 1.2 million – a reduction of 25.8% when compared to April 2022.

Surge in Ready Property Sale Transactions

According to DXB Interact, In April 2023, the Dubai real estate market witnessed a total of 3,799 ready property sale transactions, representing a 5.7% increase compared to the same month in the previous year. Among these transactions, 2,698 apartments were sold, amounting to a value of AED 4.6 billion. Additionally, 566 villas were sold, with a total worth of AED 2.9 billion. Commercial properties accounted for 229 sales, valued at AED 323.8 million, while 306 plots were sold for AED 9.1 billion. These figures highlight the continued growth and diverse investment opportunities within Dubai’s real estate sector.

In April 2023, the Dubai real estate market witnessed a noteworthy 10.7% increase in apartment sales compared to the same month in 2022. Conversely, villa sales experienced a 4.1% decrease. Commercial property sales, on the other hand, showed a positive trend with a 7.5% increase, while plot sales experienced a decline of 13.6% in April 2023 compared to April 2022. These figures reflect the dynamic nature of Dubai’s real estate market and the varying demand for different property types during this period.

Off-plan vs. Ready Property Sales 

Going by Sales volume, 55% of the transactions that took place in April 2023 were Off-plan while 45% were for ready properties.  In terms of Sales value, 55% of the transactions were off-plan, while 45% were for ready properties.

Rise in Mortgage Transaction

A total number of 2,421 Mortgage transactions worth AED 11.1 billion happened in April 2023. This was a notable increase of 32.8% in terms of the number of transactions and a 48.9% increase in total value when compared to April 2022. These figures reflect the growing confidence of buyers and investors in utilizing mortgage financing options to facilitate their real estate transactions. The increase in both the number and value of mortgage transactions showcase the continued strength and resilience of Dubai’s property market.

Property Prices Witnessed an Upward Trend

Property prices also witnessed a rise in the first quarter of 2023. According to DXB Interact, the price per. sq. ft. for the property in April 2023 increased to AED 1,278 from 1,150 in April 2022 – a YoY increase of 11.1%. When compared to the highs of April 2014, the property prices in April 2023 increased by 23.7%.

The median price per sq. ft. for an Off-plan apartment in April 2023 stood at AED 1,644 while the prices for an Off-plan villa were AED 1,278. The prices per sq. ft. for Off-plan Commercial property were AED 2,168.

The median price per sq. ft. for the Ready apartment in April 2023 was AED 1,138 while the price per sq. ft. for the Ready villa was AED 983. The price per sq. ft. for the Ready Commercial was AED 927 while the price per sq. ft. for the plot was AED 500.

Most Expensive Properties Sold in April 2023

Villas – Emirate Living remained the top choice of ultra-rich and HNWIs in April 2023 to buy premium villas with the most expensive villas sold worth AED 150 million, followed by Palm Jumeirah (AED 76 million), Elysian Mansions, Tilal Al Ghaf (AED 44 million), Jumeirah Golf Estates – Hillside, Jumeirah Golf (AED 36 million), and Golf Place, Dubai Hills (AED 33 million).

Apartments – The top 5 projects with the most expensive sold apartments were – Bulgari Lighthouse Dubai at Island 2 (AED 137 million), Six Senses Residences The Palm, Palm Jumeirah (AED 58 million), Orla By Omniyat, Palm Jumeirah (AED 58 million), One At Palm Jumeirah (AED 50 million), and  Bluewaters Bay – Building 2, Marsa Dubai (AED 42 million).

Most Popular Areas in April 2023 

According to DXB Interact, the top 5 areas in Dubai that witnessed the highest real estate transactions in April 2023 were -Jumeirah Village Circle (1027 transactions worth AED 847 million), Dubai Marina (637 transactions worth AED 1.9 billion), Business Bay (595 transactions worth AED 996 million), Dubai Hills Estate (466 transactions worth AED 969 million), Dubai Creek Harbour (405 transactions worth AED 828 million).

The most popular areas to buy Villas – Damac Lagoons, Arabian Ranches Iii, Damac Hills 2, The Valley, and Tilal Al Ghaf.

The most popular areas to buy Apartments – Jumeirah Village Circle, Dubai Marina, Business Bay, Dubai Hills Estate, and Dubai Creek Harbour.

The most popular areas to buy Commercial – Business Bay, Jumeirah Lake Towers, Al Warsan First, Mohammed bin Rashid City, and Al Thanyah First

The most popular areas to buy Plots – Jumeirah Park, Jabal Ali First, JVT, Dubai Industrial City, and JVC