Press release
Dubai’s residential transactions reach new record highs in November 2023
CBRE releases its Dubai Residential Market Snapshot – December 2023
December 12, 2023
Associated Contact
Taimur Khan
Head of Research
In November 2023, the total number of residential transactions in Dubai stood at 9,034, down 13.2% compared to the previous year. This slowdown in activity levels has been driven by a decline of 26.4% in off-plan sales, whereas secondary market sales registered an increase of 5.1%. In the year to date to November 20231, the total volume of transactions reached 112,356. This is the highest level on record to date.
Dubai’s residential market has started experiencing a slight moderation in price growth, where in the year to November 20232, average prices grew by 18.9%, down from 19.1% a month earlier. Over this period, average apartment prices increased by 18.3% and average villa prices by 22.2%. As at November 2023, average apartment prices reached AED 1,374 per square foot, and average villa prices reached AED 1,679 per square foot. These average apartment sales rates are still 7.7% below the record highs registered in 2014, although a number of submarkets have long surpassed their 2014 comparable figures. The average villa sales rates are currently 16.2% above the 2014 levels.
Jumeirah registered the highest sales rate per square foot in the apartment segment of the market at AED 2,497, whilst Palm Jumeirah registered the highest sales rate per square foot in the villa segment of the market at AED 5,217.
In the rental market, we continue to witness a moderation in the rate of growth, where in the year to November 2023, average residential rents in Dubai grew by 19.2%, down from 19.7% a month earlier. Over the same period, average apartment and villa rents increased by 19.6% and 16.6%, respectively. The average annual apartment and villa rents reached AED 111,622 and AED 324,835, respectively. The highest average annual apartment and villa rents were respectively seen in Palm Jumeirah, with average rents reaching AED 258,335, and in Al Barari, with average rents reaching AED 1,150,552.
For more market insights, visit our Insights & Research platform.
1 Refers to the time period between January 2023 and November 2023
2 Refers to the time period between November 2022 and November 2023
Dubai’s residential market has started experiencing a slight moderation in price growth, where in the year to November 20232, average prices grew by 18.9%, down from 19.1% a month earlier. Over this period, average apartment prices increased by 18.3% and average villa prices by 22.2%. As at November 2023, average apartment prices reached AED 1,374 per square foot, and average villa prices reached AED 1,679 per square foot. These average apartment sales rates are still 7.7% below the record highs registered in 2014, although a number of submarkets have long surpassed their 2014 comparable figures. The average villa sales rates are currently 16.2% above the 2014 levels.
Jumeirah registered the highest sales rate per square foot in the apartment segment of the market at AED 2,497, whilst Palm Jumeirah registered the highest sales rate per square foot in the villa segment of the market at AED 5,217.
In the rental market, we continue to witness a moderation in the rate of growth, where in the year to November 2023, average residential rents in Dubai grew by 19.2%, down from 19.7% a month earlier. Over the same period, average apartment and villa rents increased by 19.6% and 16.6%, respectively. The average annual apartment and villa rents reached AED 111,622 and AED 324,835, respectively. The highest average annual apartment and villa rents were respectively seen in Palm Jumeirah, with average rents reaching AED 258,335, and in Al Barari, with average rents reaching AED 1,150,552.
For more market insights, visit our Insights & Research platform.
1 Refers to the time period between January 2023 and November 2023
2 Refers to the time period between November 2022 and November 2023
Dubai residential market continues to extend its record-breaking total, with 112,356 transactions taking place in the year to date to November 2023. This is up by 22.5% from its 2022 full-year total. The 2023 total has been bolstered by large portfolio transactions and delayed registrations in the last couple of months; however, we expect the number of transactions to continue to recede in the coming months. This is expected to be largely underpinned by decreasing levels of off-plan sales, understandably so with developers looking to deliver the somewhat significant quantum of recently launched projects. In turn, we expect this slowdown in transaction volume to continue to support moderation in the rate of price and rental growth.
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The CBRE Dubai Residential Real Estate Market Snapshot provides an overview of the key trends and metrics driving Dubai’s residential market.