New data indicates that residential property prices in Dubai have risen by 5% for the eleventh consecutive quarter. The cost of apartments in Dubai South has risen by 73% in the past year.
The average price of a residential property rose by 5% in Q3 2023, according to real estate consulting firm Knight Frank. This is a 30% increase from Q1 2020 and a 19% annual growth rate. Prices are still 7% lower than their 2014 peak in spite of this.
In the first nine months of 2023, sales in the secondary market accounted for 51% of transactions, showing a significant proportion of end users, according to Faisal Durrani, partner and head of research for MENA. By contrast, 4.8% of transactions by total value occurred in Dubai’s principal markets.
During the first nine months of the year, ready residences sold for AED 104.9 billion, while sales of off-plan properties totaled AED 100 billion ($27.2 billion).
While remaining 10% behind the peak in 2014, apartment prices in Dubai climbed by 5.1% in Q3 2023 to over AED 1,300 per square foot, a 26% increase from Q1 2020.
The average cost of a Dubai villa rose by 4.5% between June and September to AED 1,580 per square foot, which is a 57% increase from Q1 2020.
Over the previous 12 months, apartment prices in the Dubai South neighborhood had climbed by 73%, Jumeirah Lakes Towers by 67%, and Umm Suqeim Third by 37%.
Villas in Dubai South have also had the most quarterly price increase, with prices climbing by 33% in Q3.
The Palm Jumeirah is still the most expensive apartment submarket, according to Knight Frank, with AED 3,390 per square foot, 122% more than Q1 2020 levels.
Cash purchasers continued to control the market, accounting for around 80% of transactions in Q2 2023. This helped to shield the industry from rising borrowing costs and propel record sales in 2023.
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