Dubai Real Estate Market Shows a Tremendous Growth and Transpiring Opportunities.

In Q2 2023, Dubai's residential market saw an outstanding growth in sales volume and value, with over 50,000 property negotiations and a gross sales price of over AED 91 billion. This was by far Dubai's best accomplishing Q2 on record, displaying a 35% growth in negotiations and a 54% growth in sales price compared to Q2 2022.

Apartments experienced a rush in demand, with the median price per square foot reaching AED 1,336, the highest on record for Q2. Off-plan villa prices also saw a fast rise, growing by 35% compared to Q2 2022, largely due to the growth of interest in luxury villa communities and appealing post-handover payment plans proposed by developers.

Bargain-based has also driven demand in proceeding locations. Dubai Marina was the top-selling area for ready properties, while JVC led in off-plan sales. Damac Lagoons led the off-plan villa market sales, with 642 negotiations prized at AED 1.8B.

Leading market demand

Dubai's leading real estate market is booming, placing the city as a splendor destination in line with unaltered global markets. The Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island are attracting a persistent demand from ultra-high-net-worth individuals (UHNWI) and coagulating Dubai's status as a top choice for second homes.

With average negotiated prices around AED 3,360 per square foot (roughly US$915 per square foot), Dubai perpetuates its position as one of the world's most low-priced luxury home markets. Last year, Dubai sustained a record-breaking 44% growth in leading home prices, the highest globally. The market's growth continues with a 16% growth in Q1 and a year-on-year growth rate of 54.6%.

Excessive demand

Dubai's excessive real estate market is flourishing, with the most high-priced sold apartments being in Bulgari Lighthouse, Island 2, which sold for AED 137M. The top five areas with the most high-priced sold villas included Emirate Living, which sold a villa for AED 151M.

Luxury home deals move Dubai into Global Top 5

Dubai has secured its position as one of the busiest luxury residential markets universally. With US$1 million, buyers can secure roughly 1,130 square feet of a top-tier residential space in Dubai, three times more than in London, New York, or Singapore. This low-priced, combined with Dubai's remarkable real estate offerings, has intensified demand among wealthy individuals.

In 2022, Dubai ranked as the fourth most active luxury market, with 219 homes valued above US$10 million sold for a total of US$3.8 billion, streaming behind London, LA, and New York. Dubai also ranks fifth for sales of homes valued above US$25 million.

Luxury home launches remain finite.

Dubai's overriding real estate market is sustaining a supply-demand variance, driving significant price growth. New project launches have been finite, leading to a scarceness of supply. However, this movement is starting to move, with new apartment launches on the rise in leading submarkets like the Palm Jumeirah. By 2025, a total of 289 homes are anticipated to be delivered, with 54% being villas. Outstanding projects include Alpago's Palm Flower, Ellington Beach House, Bvlgari Mansions, and Sur La Mer. Progressing villa construction projects in Damac Lagoons and Tilal Al Ghaf are adding to the forthcoming market inventory.

Market perspective

Dubai's top-tier residential market has materialized as the fastest-rising globally, navigated by its safe-haven status, the rush of diverse international ultra-high-net-worth individuals, and the government's effectual response to the pandemic. Despite the likely risks tied to global economic conditions, Dubai's safe-haven reputation reinforces its appeal in dubious times.