Dubai Real Estate Dubai’s real estate market witnessed an unexpected surge in 2023, with record-breaking sales of properties exceeding Dh5 million and Dh10 million. The transactions for these categories experienced remarkable increases of 54.5% and 68.4%, respectively, challenging the overall market trend.
Off-Plan Dominance
Off-plan sales played a significant role, constituting 67.2% and 70.8% of the total transactions for properties valued at Dh5 million plus and Dh10 million plus. This trend reflects the market’s dynamism, with the majority of high-value sales occurring in emerging developments within prime areas.
Contrasting Overall Market Trends: Dubai Real Estate
While the total volume of sales transactions in prime and super-prime segments saw a decline of 15.5% and 3.1%, Palm Jumeirah emerged as a standout performer. It registered the highest transaction volume in both categories, surpassing 963 units and 593 properties for values above Dh5 million and Dh10 million, respectively.
Pricing Dynamics in Prime Segments
Average prices within the prime segment experienced robust growth, reaching Dh4,604 per square foot in Q4 2023, marking a significant 22.5% increase year-on-year. Jumeirah Bay Island and District One led this surge, with average prices soaring by 35.6% and 27.2%, respectively.
Super-Prime Segment Highlights: Dubai Real Estate
In the super-prime segment, the average price witnessed a noteworthy 20.4% growth, reaching Dh4,900 per square foot. Jumeirah Bay Island and District One once again stood out with substantial increases in their average sales rates, at 28.5% and 22.4%, respectively.
Anticipating Market Dynamics
Taimur Khan, Head of Research for Mena at CBRE in Dubai, foresees continued strength in the prime and super-prime segments, primarily due to limited new supply. However, he expects a slight tapering off in the rate of price growth in the upcoming year.
Resilience Amidst Market Nuances: Dubai Real Estate
Dubai’s real estate landscape remains dynamic, with high-value transactions and strategic developments contributing to its resilience and continued attractiveness to investors.
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