Dubai Real Estate Market Review for June 2023
The real estate market overview for Dubai in June 2023 shows that this city continues to attract investors from around the world. Dubai offers unique opportunities for earning profits through property resale and rental, thanks to its growing market and high returns.
The average property prices in Dubai in June 2023 are 1,294 dirhams per square foot for apartments and 1,525 dirhams per square foot for villas. In dollars, this is equivalent to $352 and $415 per square foot, respectively.
The number of real estate transactions in Dubai in June 2023 is 10,419, which is 17.8% higher than in 2022. The value of these transactions has also increased by 34.1% and amounts to 30.41 billion dirhams.
Buyer preferences for property in Dubai in June 2023 show that 57.5% prefer apartments, while 42.5% prefer villas or townhouses. Among apartment buyers, one-bedroom (34.1%), two-bedroom (33.4%), and three-bedroom (32.5%) options are the most popular.
Off-plan transactions in Dubai in June 2023 also show positive dynamics. The volume of transactions for new developments amounts to 12.6 billion dirhams, which is 80% higher than in 2022.
The most popular areas for real estate transactions in Dubai in June 2023 include Dubai Marina, Palm Jumeirah, Dubai Harbour, Dubai Creek Harbour, Dubai Hills, Burj Khalifa, Jumeirah Lakes Towers, Jumeirah Village Circle, Umm Suqeim Third, and Dubai Design District.
Tenants are also actively interested in the Dubai real estate market. The share of apartment tenants is 78.5%, while villas or townhouses account for 21.5%. Among apartment tenants, one-bedroom (35%) and two-bedroom (31%) options are the most popular, while among villa tenants, three-bedroom (43.4%) and four-bedroom (36.1%) options are preferred.
To illustrate the information, let’s present it in the form of tables:
Table 1: Average property prices in Dubai (June 2023)
| Property Type | Average Price per Square Foot (in dirhams) | Average Price per Square Foot (in dollars) |
|---|---|---|
| Apartments | 1294 | 352 |
| Villas | 1525 | 415 |
Table 2: Real estate transactions in Dubai (June 2023)
| Indicator | Value |
|---|---|
| Number of transactions | 10,419 |
| Change (Number of transactions) compared to 2022 | +17.8% |
| Transaction value | 30.41 billion |
| Change (Transaction value) compared to 2022 | +34.1% |
Table 3: Buyer preferences for property in Dubai (June 2023)
| Property Type | Share of Buyers (%) |
|---|---|
| Apartments | 57.5 |
| Villas/Townhouses | 42.5 |
Table 4: Buyer preferences for apartments in Dubai (June 2023)
| Number of Bedrooms | Share of Buyers (%) |
|---|---|
| One bedroom | 34.1 |
| Two bedrooms | 33.4 |
| Three bedrooms | 32.5 |
Table 5: Off-plan transactions in Dubai (June 2023)
| Property Type | Transaction Volume (in dirhams) | Change compared to 2022 |
|---|---|---|
| New Developments | 12.6 billion | +80% |
Table 6: Most popular areas for real estate transactions in Dubai (June 2023)
| Area |
|---|
| Dubai Marina |
| Palm Jumeirah |
| Dubai Harbour |
| Dubai Creek Harbour |
| Dubai Hills |
| Burj Khalifa |
| Jumeirah Lakes Towers |
| Jumeirah Village Circle |
| Umm Suqeim Third |
| Dubai Design District |
Table 7: Tenant preferences for property rental in Dubai (June 2023)
| Property Type | Share of Tenants (%) |
|---|---|
| Apartments | 78.5 |
| Villas/Townhouses | 21.5 |
Table 8: Tenant preferences for apartment rentals in Dubai (June 2023)
| Number of Bedrooms | Share of Tenants (%) |
|---|---|
| One bedroom | 35 |
| Two bedrooms | 31 |
| Studios | 22 |
Table 9: Tenant preferences for villa rentals in Dubai (June 2023)
| Number of Bedrooms | Share of Tenants (%) |
|---|---|
| Three bedrooms | 43.4 |
| Four bedrooms | 36.1 |
| Five or more bedrooms | 20.5 |
Dubai, the capital of the UAE, is an attractive place for real estate investments. Investors choose this market for its reliability and potential for capital growth.
- The first advantage of investing in Dubai real estate is the growing market. It is possible to earn up to 100% on property resale. This means that investors can buy property at a low price and sell it at a higher price, making a significant profit.
- The second advantage is the high and stable rental income. Property owners in Dubai can earn up to 6-12% annual rental yield. This means that investors can receive a stable income from their property, making it attractive for long-term investments.
- The third advantage is flexible payment plans offered by developers. In Dubai, many developers offer flexible payment terms, making real estate investments accessible to a wide range of investors. This allows investors to spread their payments over a longer period of time, which is convenient and economically beneficial.
- The fourth advantage is the absence of taxes on real estate transactions. Unlike many other countries, Dubai does not have taxes on property purchase, sale, or rental. This allows investors to retain a large portion of their profits and increase their capital.
- The fifth advantage is the reliable local currency. The local currency, the “dirham,” is pegged to the US dollar, providing stability and reliability for investors. This means that investors do not face the risk of currency fluctuations and can be confident in preserving and growing their capital.
Overall, investing in Dubai real estate offers investors a range of advantages, including the opportunity to earn from resale, stable rental income, flexible payment terms, tax-free transactions, and the reliability of the local currency. This makes Dubai an attractive place for investments and helps investors preserve and multiply their capital.
As a result, the real estate market in Dubai continues to grow, attracting both buyers and tenants. Average prices for apartments and villas have increased, and the number of transactions and their value have also risen. Popular areas for transactions include Dubai Marina, Palm Jumeirah, Dubai Harbour, and others. Investments in Dubai real estate have several advantages, including high profitability, flexible payment plans, and tax-free transactions.
