The Dubai real estate sector continues to surge, boosted by wealthy investors and Proptech companies creating a strong foothold in the market. In February 2023, the city recorded AED 16,639,913,116.53 worth of sales transactions for ready and off-plan residential apartments, and AED 3,741,855,828.79 for ready and off-plan villas. The average price per square meter for sales transactions in February 2023 was AED 14,248.19 for apartments and AED 11,597.27 for villas. The sector is expected to revive swiftly, with more than 65,000 people receiving the golden visa.
Dubai Real Estate Market Overview
Dubai remains the world’s fourth busiest luxury property market, with 219 sales of properties worth $10 million or more in 2022, ranking behind New York, Los Angeles, and London. In 2022, Russians were the top non-resident buyers, accounting for 15% of transactions, followed by Britons, Indians, Italians, and French. Sales of apartments surged 73% in 2022 in volume terms, while villas saw just a 3% rise in volumes. In 2022, 34,000 new units were added, and 30,000-35,000 new units are expected to be added in 2023.
Dubai’s real estate sector is expected to grow steadily due to various factors, including the city attracting over 65,000 people who received the golden visa. Proptech is creating a strong foothold in the UAE real estate sector, driven by a strong startup ecosystem, government support, and high demand for smart solutions. The sector is expected to benefit from attracting more than 65,000 people who received the golden visa, indicating an increased demand for properties.
Ready and Off-Plan Apartment Sales Transactions
According to Dubai Land Department data, Ready and Off-Plan Apartment Sales transactions in Dubai for the month of February 2023 totaled AED 16,639,913,116.53, covering a total area of 1,168,067.77 sqm. The average price per square meter for all sales transactions, including Ready and Off-Plan Apartments for Cash and Mortgage, was AED 14,248.19, and the average price per square foot was AED 1,323.70.
Ready Residential Apartments sales transactions in February 2023 totaled AED 4,751,017,535.60, covering a total area of 298,902.38 sqm. The average price per square meter for Ready Residential Properties was AED 15,898.19, and the average price per square foot was AED 1,475.62.
Mortgage transactions for Residential Apartments were received worth AED 2,631,798,125.74 for a total area of 429,765.70 sqm. The average price per square meter for Residential Apartments on Mortgage was AED 6,119.79, and the average price per square foot was AED 568.36.
Off-plan Residential Apartments sales transactions in February 2023 received transactions worth AED 8,476,186,659.77 for a total area of 352,332.55 sqm. The average price per square meter for Off-plan Residential Apartments Sales was AED 24,045.06, and the average price per square foot was AED 2,233.68.
Off-Plan Mortgage Sales for Residential Apartments in February 2023 received transactions worth AED 2,382,192.00 for a total area of 174.13 sqm. The average price per square meter for Off-Plan Mortgage Sales for Residential Apartments was AED 13,686.75, and the average price per square foot was AED 1,271.63.
Ready and Off-Plan Villa Sales Transactions
Dubai real estate market saw a total of AED 3,741,855,828.79 in sales transactions for both ready and off-plan villas between February 01 and February 28, 2023. This included a total area of 323,151.49 square meters, resulting in an average price per square meter of AED 11,597.27 and an average price per square foot of AED 1,077.53.
For ready villa sales specifically, there were transactions worth AED 790,977,057.00 for a total area of 65,267.48 square meters during February 2023. Meanwhile, off-plan villa sales saw transactions worth AED 2,501,801,838.96 for a total area of 196,398.29 square meters. The average price per square meter for off-plan villa sales was AED 12,739.70 and the average price per square foot was AED 1,182.70.
It is worth noting that the data provided only covers a single month, so it is difficult to draw broader conclusions about overall trends in the Dubai villa market. However, the data does suggest that both ready and off-plan villa sales are contributing to the overall strength of the Dubai real estate market, which has seen significant growth in recent years.