- A record of 11,597 units were registered in Dubai during the month of March 2023
- Growth supported by a 96.1% growth in off-plan transactions
Dubai, UAE – 28 April 2023: Unique Properties, one of Dubai’s leading real estate agencies, has witnessed yet another strong surge in the total transaction volume of units during the first quarter of 2023. To further solidify this and as per the latest report by CBRE, a global leader in commercial real estate services and investments,the city has witnessed a record of 29,323 transactions during this period, capped by an unprecedented 11,597 units registered in the month of March 2023, both records for the highest monthly and quarterly transactions that it has ever experienced.
The quarterly growth is 47.3% higher than the previous year and has been supported by a 96.1% growth in off-plan transactions, alongside a 12.4% increase in secondary market transactions. As expected, the cost of living has also gone up with this surging demand as the average residential prices in Dubai have also increased by 12.8% in the year through March 2023, with average apartment prices increasing by 12.4% and average villa prices by 14.8% over the same period.
The more luxurious areas in Dubai have witnessed the most significant growth in volume, such as Jumeirah recording the highest sales rate per square foot in the apartment segment of the market, reaching AED 2,441, whilst Palm Jumeirah has recorded the highest sales rate per square foot in the villa segment of the market, reaching AED 4,457.
Arash Jalili, Founder and Chief Executive Officer of Unique Properties, commented: ‘The strong surge in demand for real estate is evident through the immense numbers that we have seen during the first quarter of this year with off-plan sales being the leading catalyst for this historic performance, and one of the main reasons why we should expect to maintain and possibly even exceed the total number of units generated for the upcoming months. The increase in demand, of course, also affects the overall cost of living for residents and why we have also witnessed that a huge bulk of sales registered were in the more expensive areas and through the purchases of ultra-luxury properties, as Dubai continues to be a more attractive investment option for HNWIs (High Net Worth Individuals), which we have seen a huge influx of during the last couple of years especially. This is yet another testament to why the city has been ranked as one of the top choices for expatriates to live in, due to various reasons such as tax benefits, a stable economy, quality of life and outstanding healthcare and education, just to name a few.”
Another report by Knight Frank, one of the world’s leading independent real estate consultancies, also sheds light on another factor for why Dubai’s real estate industry has been booming through its ‘Dubai’s Branded Residential Market – 2023‘, highlighting a total of AED 25.4 billion in sales generated from its branded residences with an estimate of 2,000 more units to be provided in 2023. One of the most recent ultra-luxury units registered earlier this year was the Bulgari Lighthouse development that sold for AED410m; the huge 38,970 sq ft penthouse is located in the Jumeirah Bay Island development and includes more than 13,000 sq ft of balcony and terrace space.
The total figures of sales for branded residences provides an 80% YoY (Year on Year) growth in comparison with the previous year (2021) with 62% of these units being sold in the off-plan market, proving that as long as the supply of units is available, investor demand will always be present due to various financial benefits such as affordability, convenient payment plans, and higher capital gains, being key factors that make off-plan properties a desirable investment option and further propelling Dubai’s market growth for the unforeseeable future.
