Real Estate Market Analysis in Dubai in 2023: An Exceptional Year

2023 was a remarkable year for the real estate market in Dubai, characterized by significant transaction growth. Here's a detailed summary in numbers: Transaction Growth: The volume of sales saw a remarkable increase of 37% compared to 2022, reaching a total of 133,300 transactions valued at an impressive 419 billion AED, approximately 105 billion euros. This spectacular growth represents a 56% increase (in value) compared to the previous year, demonstrating the resilience and vitality of Dubai's real estate market. Distribution between Off-Plan and Ready: Analyzing the distribution of sales between the off-plan and ready real estate markets, it's noteworthy that off-plan property sales represent 60% of the total volume, and in terms of value, they constitute 66%. This indicates a growing interest in off-plan properties, likely due to their appeal to investors and buyers seeking modern and higher-quality assets. Buyers Profile: The analysis of buyer profiles reveals that the average age range for purchasing both off-plan and ready apartments or villas falls between 36 and 40 years. However, for off-plan villas, the average age is slightly higher, between 41 and 45 years, possibly indicating a preference for luxury residences and modern amenities. Most Demanded Districts: Among the most sought-after districts for purchasing new properties in 2023, Jumeirah Village Circle (JVC) stands out with 11,450 off-plan apartments built, followed by Business Bay with 5,270, Dubai Marina with 4,990, Damac Hills with 4,540, and finally Dubai South with 4,330 off-plan apartments constructed. These districts continue to attract buyers due to their strategic locations and increasingly modern infrastructure. Rent Evolution: Regarding villa rent evolution, Arabian Ranches 1 tops the list with a 36% increase, followed by Mudon and Emirates Living with a 28% rise. Other areas like Town Square, Mira, Palm Jumeirah, JVC, Jumeirah Park, and Dubai Hills have also experienced significant increases ranging between 20 and 25%. When it comes to apartment rent, Jumeirah Bay has experienced the highest increase with +49%, followed by Dubai Hills with a +40% increase. In third place, we have Motor City and Dubai Creek Harbour with approximately +30% increases. JVC, City Walk, Palm Jumeirah, Downtown, Business Bay, Dubai Marina, and Arjan have also experienced rent increases ranging between 11 and 20%. Real Estate Supply: In 2023, 36,740 apartments were delivered, while 77,000 others were under construction, reflecting the bustling construction activity in Dubai. With a continuously growing population (+3% in 2023), the demand for housing continues to drive activity in the real estate market. In summary, 2023 was a dynamic period for Dubai's real estate market, characterized by sustained growth, evolving trends, and a diverse supply catering to the needs of buyers and investors. Dubai continues to position itself as one of the most attractive real estate destinations globally.