Dubai’s residential rents jumped 27.2 per cent in the third quarter of 2023 compared to the same period last year, and 2.1 per cent since the previous quarter.
Villa rentals rose 38.7 per cent annually but witnessed an insignificant change when compared to the previous quarter, ValuStrat’s Q3 report said.
Average annual rents for three-bedroom villas stood at Dh312,000, four-beds at Dh383,000, and five-bedroom villas at Dh492,000. Apartment asking rents grew 19.1 per cent YoY and 3.6 per cent QoQ. Average asking rents per annum for studio apartments were Dh51,000, for one-bedroom at Dh 75,000, two-bedroom at Dh111,000, and three-bedroom apartments were Dh170,000. Residential occupancy in Dubai was estimated at 88.9 per cent during the third quarter.
In terms of supply, in the year to date, 27,095 residential units are estimated to have been delivered, with 46.4 per cent of this supply being located in Meydan One, Downtown Dubai and Business Bay. A further 34,651 units are expected to be handed over the remainder of the year, the CBRE report said.
However, as per a report by property consultants Allsopp & Allsopp, Dubai’s prime residential communities have seen a rent decrease of an average of 21 per cent in the third quarter of 2023, property consultants Allsopp & Allsopp said in a report. The report suggests that the rental market saw an increase in rental transactions during the summer this year, with Allsopp & Allsopp reporting a 20 per cent increase in rental transactions, as well as a 29 per cent rise in new rental client registrations from July to September.
Dubai’s real estate market witnessed exceptional growth in the third quarter of 2023, according to data by the Dubai Land Department. There has been a surge of 22 per cent in transactions, with Q3 2023 recording 31,216 transactions compared to 25,503 in the same period in 2022. This spike in transactional activity is mirrored in the total worth of these transactions, which reached Dh 97.55 billion, a remarkable 40 per cent increase from Dh 69.5 billion in Q3 2022.
According to Husni Al Bayari, chairman and founder of D&B Properties, the Q3 2023 real estate performance “encapsulates Dubai's property market not just as enduring but as a dynamic force of innovation and adaptability. It's not merely about numbers; it's about Dubai's remarkable ability to evolve and thrive in the face of changing global landscapes. The substantial surge in transactions and market worth is a living testament to the city's unwavering charm among investors worldwide, showcasing Dubai as a resilient and forward-thinking real estate powerhouse."
In the third quarter, office space in Dubai saw annual capital gains of 25.5 per cent. The VPI grew 7.3 per cent quarterly to reach 103 points, that’s compared with a 100-point base in Q1 2015, the ValuStrat report said. ‘The weighted average price for an office in Dubai was Dh14,230 per sq m. Continued double-digit annual growth was seen in five major central business districts in Dubai: Jumeirah Lake Towers (37.2 per cent), DIFC (33.7 per cent), Business Bay (22.2 per cent), Downtown Dubai (16.8 per cent), and Barsha Heights (14.8 per cent). Shell and core Grade A office space saw valuations expand 33.3 per cent YoY, while the same classified Grade B grew 19.2 per cent YoY.’
During Q3 2023, office transitions grew by 9.0 per cent YoY but fell 4.7 per cent QoQ, reaching 631 transactions. The median transacted price stood at Dh11,140 per sq m (ADh1,035 per sq ft), up 28.4 per cent annually and 9.1 per cent on a quarterly basis.
For a detailed perspective on the property market, visit: Dubai - Real Estate Review Q3 2023