Dubai: Property market figures for August 2023
Dubai's real estate market enjoyed an excellent August 2023. At a time when the downturn in the real estate sector is gathering pace around the world, the small emirate confirms its exceptional status. As the first French-speaking real estate agency in Dubai, Dubai Immo keeps you informed, on a daily basis, of the latest news and developments in the real estate market in the United Arab Emirates, and in Dubai in particular. In the following article, we invite you to discover the excellent local real estate figures for August 2023, as well as our analysis of them.
Total transactions in Dubai up 23.7%!
In August 2023, 12,035 transactions were carried out, up 23. 7% on August 2022. Total transactions amounted to 33.7 billion dirhams, or 8.5 billion euros. This represents an increase of 38.8% on the same period last year.
These are impressive figures, which no other country in the world can match. In detail, sales of off-plan properties accounted for around 64% of total sales over this period, compared with 36% for ready-to-sell properties.
Apartment sales figures for August 2023
In August 2023, apartment sales accounted for a large share of Dubai's real estate market. Apartment sales rose by 33.2% year-on-year, to a total of 18.1 billion dirhams (4.5 billion euros). In August 2023 alone, 9,893 apartments were sold! The average price of apartments sold in Dubai fell by 4%.
Villa sales figures for August 2023
Just when it seemed that the Dubai villa market was slowing down, or even beginning a slight downturn, the month of August 2023 reshuffled the deck. While the number of transactions rose by 56.1% in July, the market fell back slightly in August 2023, with sales down by 11.7% to a total of 2,142 units. The average price of villas sold, meanwhile, rose by 46.3%, to an average of AED 3 million (EUR 760,000). The reason for the slower pace of sales is quite simply the cruel lack of supply. Very few villas are currently available on the market, hence the impressive rise in average prices.
Sales figures for commercial premises
After two sharp declines in June and July, the number of commercial space sales in Dubai rose sharply in August, climbing by 15.7% to August 2023. A total of 309 commercial premises were sold, for a total value of AED 487.2 million (equivalent to 123 million euros). The average price of a commercial property rose by 23.6% compared with the same period last year.
Land sales figures
Land sales continue to grow. Whether for apartments, residences, villas or commercial spaces, real estate developers are looking for building land to develop their latest projects. This strong demand is leading to a sharp rise in the number of transactions. In August 2023, 601 plots of land were sold, a net increase of 105.1% compared with August 2022. Total land sales in Dubai reached 6.5 billion dirhams (1.6 billion euros).
Credit and cash purchase figures
Of the 12,035 transactions recorded in August 2023, 3,229 were supported by credit. This means that only 26.8% of transactions were supported by a bank loan. While this figure remains fairly low, it has risen by 58.8% compared with August 2022. On the other hand, credit applications are fairly low. The total amount of credit granted by the bank reached 190.5 billion dirhams, 10% more than at the same time last year. These figures show that the market is doing very well.
The most expensive villa and apartment in Dubai in August 2023
The most expensive apartment sold in August 2023 was in Palm Jumeirah. This magnificent home sold for 112 million dirhams (28 million euros). By way of comparison, the second most expensive apartment sold in Dubai over the same period was worth "only" 65 million dirhams (16 million euros). The most expensive villa, sold in August 2023, is at Emirate Living. This magnificent complex was sold for 209 million dirhams, the equivalent of 53 million euros.
Our conclusion
The Dubai real estate market is doing extremely well. In a rather complicated global context, the small Emirate is doing very well, and many investors from America, China and the rest of Asia, Europe and Africa are attracted by Dubai's many assets... as well as its demographic outlook, which is very positive and attractive for real estate specialists.
