The Dubai property market continued to perform strongly in May 2023, with both sales and rental prices rising. The total value of property transactions reached AED 34 billion, up 90% from the same month last year. The number of transactions also increased by 76%, to 12,000.
Rental Market :
The rental market also grew strongly, with average rents up 25% year-on-year. The highest average rents were found in Downtown Dubai, where apartments are rented for an average of AED 102,675 per year and villas are rented for an average of AED 308,616 per year. There were more than 25K renewed rental leases in May, With the average renewed rental agreement of 100K and new rental agreement of 125K.
Factors for Growth :
The strong performance of the Dubai property market is being driven by a number of factors, including: The continued economic recovery in the UAE The influx of high-net-worth individuals into the country The introduction of new visa programs that encourage residents to pursue retirement and longer-term stays.
The Dubai property market is expected to remain strong in the coming months. The apartment category was the strongest performer, with prices up 10% year-on-year. house prices rose 8%, while commercial and plot prices were up 6% and 5% respectively. Top growth areas in May include:
Apartment: Jumeirah Village Circle - 776 transactions totaling AED 626M.
Houses: Arabian Ranches - 261 transactions totaling AED 694M.
Apartment: Dubai Marina - 551 transactions totaling AED 1.4B.
Houses: Damac Hills 2 - 89 transactions totaling AED 117M.
An exciting announcement was released that Palm Jebel Ali is going to resume construction
after a 14-year delay and is planned for launch in 2023.