Price of Real Estate in Dubai increased by 50% YoY in August 2023

As reported by Allsopp & Allsopp, the average sales price for real estate in Dubai experienced a remarkable 52% increase, surging from AED 2,167,206 in August 2022 to AED 3,291,555 in August 2023.

German citizens played a notable role in this market, contributing to 6% of total sales for the month. The dominant nationality in real estate transactions remained UK citizens, comprising 22% of the market, followed by Indians at 13%, and Lebanon and Russia, each with a 6% share.

The global appeal of Dubai's real estate market was evident, with Jumeirah Village Circle (JVC) emerging as a preferred choice among German buyers, who accounted for a substantial 25% of all transactions in this neighborhood. Transactions in the price range of AED 750,000 to AED 1 million represented 32% of apartment sales in JVC, while those in the range of AED 2 million to AED 3 million accounted for 27% of all transactions.

These preferences closely aligned with the shopping habits of German consumers. The second-most popular area among German buyers was Jumeirah Golf Estates, where they contributed to 16% of all transactions, showcasing continued interest in Dubai's real estate market, particularly in the secondary market.

Lewis Allsopp, CEO of Allsopp & Allsopp, expressed optimism for increased activity in the Dubai real estate market during the fourth quarter of 2023. He highlighted Dubai's allure as an economic hub that continues to attract attention from nations like Germany, which is currently facing one of its most significant crises in decades.

The research also highlighted a substantial 27% decline in the issuance of apartment building licenses during the first half of 2023, leading to insolvency declarations from several German real estate development firms. Despite local predictions of a more than 5% decline in property values in Germany throughout 2023, with stability projected for 2024, potential buyers remain cautious due to perceived high market prices, according to Allsopp & Allsopp.