UAE

Dubai Real Estate Slowdown: Transactions Fall in September as Off-Plan Sales Dip 41.5%

The Dubai real estate residential market recorded a total of 7,523 transactions in September 2023, according to analysis by CBRE.

It represents a decline of 8.3 percent compared to a year earlier.

This slowdown in activity levels has been underpinned by a drop of 41.5 percent in off-plan market sales, whereas secondary market sales increased by 30.5 percent.

In the year to date, September 2023, the total transaction volumes reached 87,154.

This is the highest figure registered over this period, and despite the slowdown seen in the last month, it is expected that the 2023 total will surpass the 92,144 registered in 2022.

In the year to September 2023, average prices in Dubai increased by 19.6 percent.

Over this period, average apartment prices increased by 19.7 percent, reaching AED1,357 per square foot, and average villa prices increased by 18.9 percent, reaching AED1,605 per square foot.

The average apartment sales rates across Dubai are still below the record levels witnessed in 2014 by 8.8 percent, although several key residential areas have long outperformed their 2014 benchmark.

Average villa sales rates currently sit at 11.1 percent above their 2014 levels.

Downtown Dubai registered the highest sales rate per square foot in the apartment segment of the market, reaching AED 2,453, while Palm Jumeirah registered the highest sales rate per square foot in the villa segment of the market, reaching AED 4,995.

In the rental market, a moderation in the rate of growth continues to be seen, where in the 12 months to September 2023, average residential rents increased by 20.6 percent, down from the 21.7 percent growth registered a month earlier.

Over this period, average apartment and villa rents rose by 20.7 percent and 20.1 percent, respectively.

The average annual apartment and villa rents reached AED108,606 and AED322,750, respectively, in September 2023.

The highest annual apartment and villa rents were respectively found in Palm Jumeirah, with average asking rents at AED257,366, and in Al Barari, with average rents at AED1,098,788.

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Arabian Business

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