The real estate market figures for the first quarter of 2023 are once again exceptional. The trend established in 2022 has been largely confirmed and even accelerated in the first quarter of 2023.

The volume of sales increased by more than 60%

Official statistics from the Dubai Land Department show an impressive increase in sales volume in the first quarter. The total value of transactions registered in the first quarter exceeds CHF 22 billion (88.7 billion dirhams). This represents an increase of over 60% compared to the first quarter of 2022. As a reminder, 2022 was already one of the record years!

Demand for off-plan housing increased by 95%.

Off-plan sales were the main contributor to this spectacular growth in the first quarter. 72% of total villa sales were completed via off-plan transactions. Compared to the first quarter of 2022, finished villa sales decreased by over 12%, while at the same time off-plan villa sales increased by over 6%.

However, the key factor behind such increased volumes is off-plan apartment sales. These recorded a 95% increase in demand compared to Q1 2022. In this context, JVC (Jumeirah Village Circle) was the area with the highest sales volume, with almost 2400 transactions.

Strongly increasing prices per square meter for all types of properties

Not only did transactions record above-average growth, but also the price development per square meter. The average price per m2 increased by 6% for off-plan apartments and about 21% for off-plan villas. For already completed apartments and villas, the increase was 1.5% and 11%. respectively. compared to the first quarter of 2022.

What is the future of the real estate boom in Dubai?

As of today, it can be said that the growth of the real estate market in Dubai shows no signs of slowing down yet. In the medium term, however, we believe that the rates of increase will slow down after we have seen a steep rise in both transaction volumes and prices per square meter. Accordingly, this has resulted in the highest market volume of any quarter.

Personally, we continue to see robust demand for luxury properties in prime locations. Here, inquiries for Palm Jumeirah, Dubai Beach Front or Dubai Hills are top of the list for both existing and off-plan properties.

We are now enjoying the last week of Ramadan and look forward to the big closing festival Eid al-Fitr.

Your Terra Nova Real Estate Team