Provident’s Dubai Property Market Report 2023

Dubai's real estate market thrives, demonstrating resilience and adaptability in any given scenario. As of Q3 2023, Dubai's official population stood at 3.6 million, with an additional 1,165,855 temporary residents residing outside the country, courtesy of the government's Investor Visa initiative. Last year, top property developers launched various innovative properties to meet the demands of the growing population. We also noticed a swift completion of units, increased sales transactions, and many other activities in the previous year. Provident's Dubai Property Market Report 2023 provides valuable insights into all these trends, setting the stage for a more dynamic real estate landscape in the years ahead.

Key Highlights from Dubai Real Estate Market Statistics

• This year, Dubai’s real estate marked the completion of 34,929 units.
• There were 118,645 residential property transfers, reflecting a 37% increase from 2022. 
• About 57,337 properties were registered for off-plan purchases, representing a 74% increase in sales.
• 38,544 properties were resold across various areas, showing a significant 46.71% increase in sales from 2022.
• Total mortgage registrations amounted to 43% compared to the previous year. 
• About 205,346 new rental contracts were signed, whereas 293,624 contracts were renewed.

Detailed Dubai Property Market Report 2023

Units Completed in 2023

According to the Dubai Market Report 2023, Dubai recorded the completion of 34,929 units in 2023, comprising 81.43% apartments, 12.32% townhouses, 3.72% commercial units, and 2.53% villas. The stats indicate a high demand for apartment living in Dubai this year. Palm Jumeirah, Jumeirah Village Circle, Mohammed Bin Rashid City, Dubai Creek Harbour, and Downtown are the neighborhoods where most units are located.

Sales Transactions in Dubai

This year marked a substantial 37% increase in sales transactions, totaling 118,645 residential property transfers. The transaction breakdowns comprise 92,469 apartments with an average sales price of AED 1,983,848 per unit, 16,750 townhouses averaging AED 2,662,245 per unit, and 9,426 villas sold on an average of AED 9,382,275.

As per the Market Report 2022-23, the top-selling areas are Jumeirah Village Circle, Business Bay, Mohammed Bin Rashid City, Dubai Hills, and Sobha Hartland. JVC emerged as the most sought-after area among home buyers and investors.

Off-Plan Properties

A total of 57,337 properties were officially registered with the Dubai Land Department (DLD) for off-plan purchases in 2023. This figure in the Dubai Real Estate Report 2023 represented a substantial 74% increase in sales compared to the numbers recorded in 2022. The breakdown of these off-plan purchases includes 50,740 apartments with an average price of AED 2,226,886, 5,751 townhouses with an average price of AED 2,759,204, and 846 villas with an average price of AED 7,258,542.

Jumeirah Village Circle, Business Bay, Mohammed Bin Rashid City, Dubai Hills, and Sobha Hartland claimed the spotlight as the top areas for property sales, with Jumeirah Village Circle leading at 15.8%, followed by Sobha Hartland at 6.2%, Business Bay at 7.4%, Mohammed Bin Rashid City (MBRC) at 5.8%, and Arjan at 6.1%. 

Off-Plan Resale

In 2023, the overall volume of transactions in the off-plan resale market reached 7,138. The apartment transactions amounted to 5,512, with an average price of AED 2,430,024. Townhouses recorded a total of 1,530 transactions, averaging AED 2,353,407. Additionally, there were 45 transactions for villas (excluding land), with a combined value of AED 7,485,784.

Business Bay, Mohammed Bin Rashid City, Downtown, Dubai Harbour, and Dubai Creek Harbour emerge as the prime preferences for property transactions.

Ready Properties – Secondary Market

The resale market for ready properties experienced a substantial uptick in engagement, emphasizing a solid desire for ready-to-move-in apartments, townhouses, and villas.

In 2023, 38,544 properties were successfully resold across diverse regions. This marks a noteworthy surge in 2023 from the total sales recorded in 2022, which stood at 26,273. These resold properties encompassed various types, including apartments, townhouses, and villas, with Dubai Marina emerging as the leading market for sales.

In 2023, the mortgage market also witnessed significant expansion, marking a 43% surge in total mortgage registrations compared to the preceding year.

Rental Market Analysis

Dubai's rental market experienced an upward trend, driven by pandemic recovery and a strategic shift towards short-term leasing for higher returns. In 2023, 205,346 new rental contracts were signed, while 293,624 were renewed.

Most Expensive Real Estate Sold in Dubai in 2023

In Dubai's vibrant property market landscape, Provident Real Estate drew attention by orchestrating a groundbreaking transaction last year. Our agent, Sam Horani, facilitated the impressive AED 500M sale of COMO Residences in Palm Jumeirah. After the trailblazing deal, the Nakheel project became Dubai's most expensive penthouse. 

What is the Trend in the Dubai Property Market in 2023?

The Dubai Property Market Report for 2023 highlighted a considerable rise in completed units. It also pointed towards the necessity for additional properties to cater to the expanding population. Provident's Real Estate Report also noted an upward trend in the secondary market for ready properties.

Additionally, rents across Dubai increased significantly, attributed to a strategic shift towards short-term leasing for higher returns. The off-plan market emerged as a key player, indicating significant investor interest and confidence in the future of Dubai's property development.

Dubai’s Investment Hotspots

Dubai Real Estate Market 2023 also highlighted the hotspots for investment in Dubai for 2024 that offer promising opportunities in a rapidly evolving property market. These areas encompass The Valley by Emaar, Dubai Creek Harbour, Tilal Al Ghaf, Jumeirah Village Circle, and Arjan.

What is the Market Prediction for Dubai?

In a noteworthy policy amendment in the highly sought-after Golden Visa, the Dubai government has recently declared the elimination of the minimum down payment requirement for investors.

Analysts anticipate this modification will bring new life into Dubai's real estate market, enticing local and global investors to choose long-term investments in the area. This policy shift is also expected to increase property transactions, especially within the luxury segment, as more investors are inclined to leverage Golden Visa's advantages.

For further information about the real estate market, download Provident’s Property Market Report 2023 pdf.