Q3 2023 residential market report | betterhomes real estate
Q3 2023 Residential Market Report
Discover the key insights from Dubai's real estate market in Q3 2023, including sales trends, price growth, and the latest on the luxury and rental markets.
Introduction
The Dubai real estate market continued to go from strength to strength, with a busy summer period resulting in record transaction volumes, up 22% year on year. Property prices rose in many key communities, resulting in a 49% increase in the total value of transactions. Alongside ongoing growth in the real estate market, the announcement of major infrastructure projects, like the relaunch of Palm Jebel Ali and the expansion of Hessa Street, showed Dubai’s commitment to achieving its 2040 plans.
Betterhomes witnessed a marked shift towards domestic demand in Q3, as the summer months kept some international investors at bay, while residents searched out villas and townhouses in greater numbers in the face of rising rental costs. The proportion of buyers identifying as end users in Q3 2023 was at its highest since early 2021 at the height of the pandemic. However, there were some signs in the past month that buyers were less willing to chase double-digit price increases, with the rate of growth in new MOUs signed in September falling below previous months' highs.
In the rental market, a lack of available stock in popular communities continued to put upward pressure on rental prices, with occupancy rates at properties managed by Betterhomes at record levels. A 19% annual decrease in new leasing transactions suggests that rising rental prices have motivated tenants to renew their leases, rather than seek new ones. With inventory from the surge in new development not expected to materially impact supply until 2025, tenants are unlikely to feel much relief from rental price rises in the near future.
Dubai continues to attract expats from across the globe, with the population growing by almost 100,000 in the year to July. Russian nationals dropped out of the top 3 buyers at Betterhomes for the first time in 18 months, with the declining Ruble weighing on affordability. However, this was more than offset by demand from Indian and British nationals, many using property investment as a path to the Golden Visa. With the UAE expected to attract 4,500 millionaires in 2023, rapid growth persists in the luxury segment.
Get The Latest Insights
In our comprehensive Q3 Residential Market report, you'll find all the latest real estate insights including:
- Sales Transactions
- Real Estate Prices
- Demand and Supply
- Luxury Market
- Rental Market
