An Uptake in Off-plan Transactions in Dubai.
Having an updated overview of the Dubai real estate market’s status is surely something important; it allows you to take decisions regarding renting, buying, or investing based on data and insights.
Through this quick and inclusive guide, you will know all about the market’s performance and trends during Q2 2023.
HighlightsÂ
- The real estate market in Dubai during Q2 2023 achieved an exceptional record for the quarter over the last decade.
VolumeÂ
Total Sales Transactions
- In Q2 2023, the registered sales amounted to 30,098 transactions, compared to 22,322 transactions during Q2 2022, showing a huge YoY increase of 34.84%.
- With such an increase, it records the second-highest performance for a quarter over the last decade, compared to Q1 2023, owing to the outstanding performance of the ready transactions
- The existing/ready transactions: it represents 51.12% of the total sales transactions, compared to  60% in Q2 2022.
- Off-plan: it had powerful support for the market regarding the transactions volume. During Q2 2023, the off-plan percent represented 48.88% of the total transactions while in Q2 2022, it was 40%, driving the market into a significant record for a quarter.
Off-plan Sales TransactionsÂ
- The off-plan sales reached 14,712 transactions in Q2 2023 compared to 8,929 in Q2 2022, achieving a notable rise of 65%.
- During Q2 2023, the off-plan transactions represented 48.9% of the total transactions, which is almost a 9% increase compared to 40% during the same period last year.
Existing/Ready Sales Transactions
- The existing sales reached a new record with 15,386 transactions in Q2 2023, compared to 13,393 in Q2 2022, making it the highest performance of the quarter ever.
- The ready/existing transactions show a YoY increase of 14.88% compared to Q2 2022 and a 2.5% rise compared to Q1 2023.
ValueÂ
Total Sales Transactions
- In Q2 2023, the market’s value of sales transactions reached AED 90.75 billion, compared to AED 58.96 billion in Q2 2022, recording the highest value ever for a quarter.
- The value of sales transactions shows an increase of 53.93%, compared to Q2 2022, showing an exceptional increase in the total sales value.
- This owes to the strong economic growth and tourism, which led to the steady demand for housing, although the unstable state of the global economy.
Off-plan Sales TransactionsÂ
- During Q2 2023, the off-plan sales reached AED 35,06 billion in transactions, compared to AED 18,34 billion in Q2 2022, showing an increase of 91.18%.
- The off-plan transactions represent 38.64% of the total transactions’ value, showing about a 7.5% increase compared to the same period last year, which was 31.1% of the total transaction value.
Existing/Ready Sales Transactions
- During Q2 2023, the existing/ready sales value hit a new record reaching AED 55.7 billion, compared to AED 40.6 billion in Q2 2022, showing an exceptional increase of 37.11%.
- In addition, this record is the highest transaction value ever for a quarter with a 4.2% increase from the previous quarter (Q1 2023).
Total Rental Contracts Q2 2023
New Rental Contracts Volume Q2 2023
The Dubai rental market experienced the signing of numerous new rental agreements by residents in search of new homes. Below are the top areas where these new leasing contracts were executed:
- Jabal Ali Industrial First
- Muhaisanah Second
- Hor Al Anz
- Al Goze Industrial Second
- Al Goze Third
- Al Warsan First.
Renewed Contracts Volume Q2 2023
The renewed contracts show the ongoing demand and satisfaction of the residents towards these communities.
Here are the top areas that witnessed contract renewals in Dubai, in order from the highest.
- Jabal Ali First
- Al Warsan First
- Al Goze Industrial Second
- Al Karama
- Nadd Hessa
- Naif
- Jabal Ali Industrial First
High-in-Demand Areas for Sale and Rent
An Uptake in Off-plan Transactions in Dubai.
The following table includes the top options for owning or renting an apartment or villa in Dubai.
| Apartments for Sale | Villas for Sale | Apartments for Rent | Villas for Rent |
| Dubai Marina | Dubai Hills Estate | Dubai Marina | Dubai Hills Estate |
| Downtown Dubai | Palm Jumeirah | Jumeirah Village Circle | DAMAC Hills 2 |
| Business Bay | Arabian Ranches | Downtown Dubai | Al Barsha |
| Jumeirah Village Circle | DAMAC Hills | Business Bay | Jumeirah |
| Palm Jumeirah | Al Fujran | Jumeirah Lake Towers | DAMAC Hills |
Property Sales Prices in Dubai
The table below shows the average asking prices for apartments in Dubai in Q2 2023:
| Area | One Bedroom | Two Bedrooms | Three Bedrooms |
| Dubai Marina | AED 1,400,000 | AED 2,350,000 | AED 3,700,000 |
| Downtown Dubai | AED 1,900,000 | AED 4,000,000 | AED 5,900,000 |
| Business Bay | AED 1,550,000 | AED 2,499,000 | AED 3,800,000 |
| Jumeirah Village Circle | AED 850,000 | AED 1,500,000 | AED 1,960,000 |
| Palm Jumeirah | AED 3,000,000 | AED 5,250,000 | AED 7,400,000 |
The table below shows the average asking prices for villas in Dubai in Q2 2023:
| Area | Three Bedrooms | Four Bedrooms | Five Bedrooms |
| Dubai Hills Estate | AED 5,500,000 | AED 4,600,000 | AED 9,100,000 |
| Palm Jumeirah | AED 10,562,500 | AED 32,000,000 | AED 40,000,000 |
| Arabian Ranches | AED 3,600,000 | AED 6,500,000 | AED 8,500,000 |
| DAMAC Hills | AED 2,800,000 | AED 3,600,000 | AED 6,900,000 |
| Al Fujran | AED 2,750,000 | AED 3,450,000 | AED 5,200,000 |
Property Rental Prices in Dubai
The table below shows the average rental prices for apartments in Dubai in Q2 2023:
| Area | One Bedroom | Two Bedrooms | Three Bedrooms |
| Dubai Marina | AED 105,000 | AED 155,000 | AED 240,000 |
| Jumeirah Village Circle | AED 65,000 | AED 90,000 | AED 130,000 |
| Downtown Dubai | AED 130,000 | AED 220,000 | AED 370,000 |
| Business Bay | AED 90,000 | AED 145,000 | AED 210,000 |
| Jumeirah Lake Towers | ​​AED 80,000 | AED 120,000 | AED 150,000 |
The table below shows the average rental prices for villas in Dubai in Q2 2023:
| Area | Three Bedrooms | Four Bedrooms | Five Bedrooms |
| Dubai Hills Estate | AED 310,000 | AED 280,000 | AED 350,000 |
| DAMAC Hills 2 | AED 79,500 | AED 325,000 | AED 130,000 |
| Al Barsha | AED 300,000 | AED 325,000 | AED 400,000 |
| Jumeirah | AED 250,000 | AED 350,000 | AED 450,000 |
| DAMAC Hills | AED 229,999 | AED 320,000 | AED 440,000 |
Property Finder is always trying to give you full visibility to make a data-driven decision. For extra details, you can download the full Market Watch Report for Q2 2023.
Source: Property Finder
