Dubai – In October 2023, the number of transactions in Dubai’s residential market totalled 6,407, marking a drop of 23.6% from the year prior. Over this period, off-plan transactions declined significantly by 57.2%, whilst secondary market transactions grew by 29.5%. Despite this recent slowdown, in the year to date to October 20231, a total of 93,590 residential transactions were recorded, surpassing the 2022 full year total of 92,178, which was the highest total ever recorded in a year until now.

Dubai’s average residential prices increased by 19.1% in the year to October 20232, marginally down from the 19.6% rate of growth registered a month earlier. Over the same period, average apartment and villa prices rose by 18.7% and 21.4%, respectively. In October 2023, average apartment prices stood at AED 1,364 per square foot, and average villa prices stood at AED 1,649 per square foot. Although the average apartment sales rates per square foot still sit at 8.3% below the 2014 high, a number of communities have already topped their 2014 levels. On the other hand, the average villa sales rates have surpassed their 2014 figures by 14.1%.

In the apartment segment of the market, Downtown Dubai recorded the highest sales rate per square foot at AED 2,500, whereas, in the villa segment of the market, Palm Jumeirah recorded the highest sales rate per square foot at AED 5,125.

The rental market has continued to experience moderation in growth rates since the start of the year. In the year to October 20232, average rents in Dubai increased by 19.7%, registering a decline from the 20.6% growth recorded in September 2023. Over this period, average apartment rents rose by 19.9%, and average villa rents grew by 18.0%. As at October 2023, the average yearly apartment and villa asking rents stood at AED 110,080 and AED 322,891, respectively. The highest yearly apartment and villa rents were respectively found in Palm Jumeirah, with average rents at 256,204, and in Al Barari, where average rents reached AED 1,096,675.

Taimur Khan, Head of Research – MENA at CBRE in Dubai, comments: “Whilst the total transaction volumes have decreased in October 2023 by 23.6% compared to last year, this does not mean that demand has weakened. Given high levels of demand for off-plan properties and deteriorating levels of supply, off-plan sales have fallen by 57.2% in the year to October 2023. The absorption that we have seen within the off-plan segment of the market has been almost unprecedented. Looking at off-plan sales of units which were launched from 2022 onwards, our headline analysis shows that 67.5% of these units have been sold to date, and for prime and core markets, this number is north of 90% on average.”

1 Refers to the time period between January 2023 and October 2023
2 Refers to the time period between October 2022 and October 2023

About CBRE Group, Inc.

CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2022 revenue). The company has approximately 115,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.