Dubai is an amazing city with possibly the hottest real estate market in the world. It certainly continues to show dazzling real estate numbers in October 2022. Despite the global recession, rising interest rates, and surging inflation, the new visa policy and Dubai 2040 Urban Master Plan strategy seems to do the magic trick.
Rising rents and an ever-increasing population continue to drive demand for residential and commercial property.
Off-plan sales are holding steady despite costly interest rate rises, as many developers are offering finance packages and other incentives.
Let’s look at some numbers.
In October 2022 there were 8,691 property sale transactions in total.
And that is up 62.3% vs. October 2021. Total sales value is AED 25.4B, which is up 93.7% vs. October 2021.
Off-plan vs. Ready property sales:
Sales Volume
Off-plan – 58%
Ready – 42%
Sales Value
Off-plan – 60%
Ready – 40%
Dubai property sales value by category:
Villa 25%
Plot 20%
Apartment 54%
Commercial 1%
The property demand in October 2022 was mainly in these 5 areas:
Business Bay
Dubai Marina
JVC
Palm Jumeirah
Al Merkadh
Property sales volume by price range. This sales value proposition does not include the mortgage transactions:
Below 1 M – 28%
1-2 M – 38%
2-3 M – 18%
3-5 M – 11%
More than 5 M – 11%
TOP-5 Areas for Apartments Sales
Business Bay,
average sales price AED 1,561,000
JVC,
average sales price AED 600,000
Palm Jumeirah,
average sales price AED 5,404,500
Dubai Hills Estate,
average sales price AED 1,516,366
Dubai Marina,
average sales price AED 1,603,444
TOP-5 Areas for Apartments Rentals
International City, Dubai Silicon Oasis,
average rent price AED 33,000 (per year)
Discovery Gardens, Al Furjan
average rent price AED 40,000 (per year)
JVC
average rent price AED 45,000 (per year)
Al Marsa (Dubai Marina, JBR, Bluewaters, and Dubai Harbour)
average rent price AED 100,000 (per year)
Business Bay
average rent price AED 75,000 (per year)
In October 2022, the property prices of apartments and villas have shown an upward trajectory across both luxury and affordable segments. The average sales price per square foot of affordable properties has shown an appreciation of up to 14%, whereas that for affluent areas has increased by up to 6%.
Similarly, housing costs of rental properties in Dubai have increased across both luxury and affordable segments. There is a 15% increase in the cost of reasonably-priced properties, whereas luxury rentals have surged by up to 25% in certain areas.
Sources: Dubai Land Department (DLD), DXBinteract.com, Bayut