Dubai Real Estate Market Review 27-Dec-2023
Below are the latest real estate news and transactions.
Dubai short-stay rents surge 50%
In December, Dubai's short-stay rental market experienced remarkable growth, with some property owners seeing year-on-year rate increases up to 50%. This surge is primarily in luxury rentals, including villas and upscale apartments, where weekly rates range between Dh1,500 to Dh2,500 per day, and even higher in premium locations like the Palm and Downtown Dubai.
The trend deviates from traditional patterns observed in early December when tourist influx typically slows and rates drop by about 20%. However, this year's early December saw a significant rate increase, attributed to the influx of visitors for COP28. This exceptional demand led many property investors to swiftly add their new properties to the short-stay rental market, with some choosing short-term rentals over annual leases due to the lucrative returns.
Dubai Creek Harbour is emerging as a notable area in the short-stay rental market, attracting business travelers and new residents with its modern complexes, proximity to the airport and Downtown Dubai, and more budget-friendly options compared to other expat-dense areas. While not a traditional holiday destination, Dubai Creek Harbour caters to a specific market segment, finding success in its niche.
Read the full article at Gulf News
Dubai real estate: Property sales in 2023 set to exceed $108bln
Dubai's real estate market is on course for a record-breaking year, with sales expected to surpass AED 400 billion ($108.9 billion) by the end of 2023. According to W Capital, a Dubai-based real estate brokerage firm, sales have already reached over AED 393 billion since January, with more than 127,000 transactions recorded. The market has been experiencing high daily sales, often exceeding AED 1 billion and sometimes reaching up to AED 3 or 4 billion.
In the previous month alone, the market saw over 12,000 sales transactions worth AED 42.41 billion, as reported by Property Finder. The majority of these deals were for apartments, which made up over 80% of the sales, while villas and townhouses accounted for 18.8%.
The Dubai property market has attracted a substantial number of local and international buyers, especially those interested in prime real estate. According to Knight Frank, Dubai is expected to see the highest annual prime price growth of 14% among major markets in 2023. Buyers are particularly drawn to Dubai’s affluent neighborhoods, including inland villas for luxury living in green settings and sought-after waterfront properties.
Despite global uncertainties like inflation, interest rates, climate issues, and conflicts, Dubai's property market is expected to end 2023 robustly, as stated in a report by Asteco.
Read the full article at Zawya
Dubai Real Estate Transactions as Reported on the 26th of December 2023
Dubai Real Estate Transactions Hit AED 1.2 Billion as of December 26, 2023
As of December 26, 2023, Dubai has witnessed a significant spike in its real estate transactions, with the market seeing an accumulation of AED 1.2 billion in sales. The figures released have provided a clear indication of the market's leaning towards off-plan properties, which have recorded sales of AED 699 million. In contrast, the ready-to-move-in properties have also held a strong position with sales amounting to over AED 521 million.
The breakdown of the sales indicates that flats have dominated the off-plan property segment, with transactions reaching AED 628 million. Villas followed with a total of AED 70 million in the off-plan category, displaying a respectable share of the market's interest. The data for hotel apartments and residences in the off-plan market showed no transactions up to this date.
In the realm of ready properties, flats have continued to lead in sales, achieving AED 377 million. The villa segment in ready properties has not lagged far behind, with an aggregate of AED 74 million in sales. Notably, hotel apartments and residences marked a sales volume of AED 30 million, signifying their presence in the market.
The presented figures from December 26 reflect the current state of Dubai's property market transactions, with a clear favorability towards off-plan flats and a significant contribution from ready properties.
The data Source is Dubai Land Department