The Dubai property market continues to break records. The beginning of 2023 is marked by high demand and positive sales dynamics, a record for this period. Analysts from the international consulting company CBRE conducted an analysis of market performance in January and February 2023. Specialists of the real estate agency OWRealty share the most important findings of experts in the article.
How much has real estate sales in Dubai grown?
A large international company CBRE, one of the leaders in consulting and investment management, posted a report on the official website that provides data on the housing market in Dubai for January and February 2023.
- In February 2023, 8,515 transactions were recorded. The indicator increased by 43.9% compared to February last year. This is the largest number of transactions in February in the history of the residential real estate market in the emirate
- Significant growth was shown by the real estate market under construction. Sales in the off-plan segment increased immediately by 78.1% compared to the same period in 2022. Existing home market up 18.8%
- The total number of transactions in January and February 2023 was a record for this period for all the years of observation. More than 17,700 transactions have already been completed since the beginning of 2023
The market continues to grow steadily, demand remains stably high. Interest in real estate in Dubai is shown by foreign citizens from all over the world.
Property prices in Dubai in January-February 2023
According to CBRE statistics, the average property price in Dubai increased by 11.5% year-over-year by February 2023.
- The price of an apartment in Dubai showed an increase of 11.2%
- The price of a villa in Dubai increased by 13.6%
Average cost per square foot (0.09 sq. meters) in Dubai:
- apartments - 330$ per sq. foot
- villas - 390$ per sq. foot
Areas of Dubai with the highest real estate prices:
- The highest cost per sq. feet in flats recorded in the Jumeirah area (650$ per sq. ft.)
- The highest price per sq. futa in villas - on the famous island Palm Jumeirah (1173$ per sq. ft.)
Average property prices in Dubai have not yet reached the all-time high of 2014. But in some prestigious areas the record has already been broken. The report does not indicate which areas are referred to. But we can assume that we mean prestigious areas with luxury real estate: Dubai Marina, Palm Jumeirah, JBR and others. At the end of the year, prices increased the most in the premium segment.
Rental housing in Dubai continues to rise in price
According to CBRE, rent for the year by February 2023 rose by 27.7%.
- Renting an apartment in Dubai has become more expensive by 27.9%
- Renting a villa in Dubai increased in price by 26.3%
Average rental price per year:
- apartments - 27 150$
- villas - 80 400$
This dynamic creates favorable conditions for investment in real estate with a view to renting out. OWRealty experts are ready to help investors choose the best object out of 500 in the database. When selecting, they take into account the location, infrastructure and prospects for the development of the territory, so that the investor receives the fastest possible return on investment (ROI).
The first two months of 2023 show that the Dubai real estate market is in a favorable state. Prices are rising at a moderate pace, demand and the number of transactions are increasing.
The market has come a good period for buying a home for personal residence or for investment purposes. OWRealty spoke about real estate investment strategies in Dubai In this article.