In September 2023, the transaction volumes in Dubai's residential market decreased by 8.3%. This was primarily due to a significant decrease in off-plan market sales, reducing overall transaction activity.
Meanwhile, transaction volumes in the secondary market increased by 30.5%, partially offsetting the overall decline in transaction volumes, indicating that there is still strong demand for second-hand properties in the market.
Despite the decrease in transaction volumes, the average property prices in Dubai have continued to show a steady upward trend.
As of September 2023, the average property prices increased by 19.6%. The average price per square foot for apartments increased by 19.7%, reaching AED 1,357, while the average price for villas increased by 18.9%, reaching AED 1,605 per square foot. This suggests that despite the impact on transaction volumes, the real estate market in Dubai still holds a high investment value and potential.
In terms of geographical areas, the downtown Dubai apartment market has the highest price per square foot, reaching AED 2,453, while the Palm Jumeirah villa market has the highest price per square foot at AED 4,995. These areas typically attract numerous affluent buyers and are hubs for high-end luxury real estate projects.
In the rental market, demand remains high but the growth rate has slowed down. In the 12 months leading up to September 2023, the average residential rents in Dubai increased by 20.6%, slightly lower than the previous month's 21.7%. Average rents for apartments and villas increased by 20.7% and 20.1%, respectively. In September 2023, the average annual rents for apartments and villas reached AED 108,606 and AED 322,750, respectively.
It's worth noting that in the rental market, some residential communities have experienced decreasing rental rates. In certain areas like Business Bay, Downtown Dubai, Dubai Marina, and the Palm Jumeirah, the asking rents for some residential properties have actually decreased, accounting for 22.6% of the overall residential inventory. This may be attributed to increased market supply and heightened competition.
