Prime Dubai real estate hit record levels in 2023; prices increase up to 35.6% and tipped to grow this year

Dubai’s high and super high real estate sectors saw record deals volumes last time and prices are sloped to go up in 2024

The Dubai real estate sector saw record exertion in the high and super high parts last time, according to CBRE analysis. Along with record figures of parcels worth further than AED5m($1.36 m) and AED10m(2.7 m) changing hands, prices in certain areas increased by over to35.6 per cent.

Prices for the high and super high parcels are sloped to go up again this time, CBRE said. Dubai real estate record Deals of parcels worth further than AED5m($1.36 m) and AED10m(2.7 m) in Dubai hit record situations in 2023, reaching 10,296 and 3,806.

This was an increase of54.5 per cent and68.4 per cent from a time before, independently. Off- plan deals in both parts of the Dubai real estate request have been the primary motorists of exertion, where, in the AED 5m and AED 10m parts of the request. Off- plan deals reckoned for 67.2 per cent and70.8 per cent of total sale volumes, independently.

The position of demand has been similar that the vast maturity of deals in these two parts have passed in fairly incipient developments, where numerous of these developments are still only arising as high locales. In traditional high andsuper-prime locales, CBRE judges linked a slightly different line take place, at least from a sale volumes perspective. Prime andsuper-prime areas are defined as follows

• Town Dubai

• Emirates Hills

• Jumeirah Bay Island

• Palm Jumeirah

• District One Prime parcels relate to parcels vended in these areas for further than AED5m, andsuper-prime parcels those vended for further than AED10m in Dubai. In 2023, the total volume of deals deals within the high member of the request declined by15.5 per cent compared to the time prior, reaching a aggregate of 1,968. Over this period, within thesuper-prime member of the request, the number of deals stood at 1,003, marking a decline of3.1 per cent compared to a time before.

Among the communities tracked by CBRE, in 2023, Palm Jumeirah registered the loftiest volume of deals in both the high andsuper-prime request parts, with the total number of units vended worth further than AED5m standing at 963 and the total number of parcels vended above AED10m reaching 593, over the same period. In both the high andsuper-prime parts of the request, these retardations in exertion situations have been primarily sustained by softening in out- plan deals, while secondary request deals registered significant increases.

Despite strong situations of demand given the mature nature of high andsuper-prime locales, much of the available force in the request has formerly been absorbed, and new launches have been veritably limited in recent months. According to CBRE, this background has led to a softening in sale situations, in 2024, and is commodity the real estate and investment specialists anticipate will be the case in the broader AED5m and AED 10m requests.

As at Q4 2023, average prices within the high member of the request stood at AED 4,604($ 1,254) per forecourt bottom, marking an increase of22.5 per cent from a time before. This growth has been sustained by significant price growth in the likes of Jumeirah Bay Island and District One, where average prices grew by35.6 per cent and27.2 per cent time- on- time. More so, in Q4 2023, the average deals value of high domestic means within the communities that CBRE monitors reached AED28.3 m($7.7 m). Looking at thesuper-prime request member, average prices registered a growth rate of20.4 per cent in the time to Q4 2023, reaching AED 4,900($ 1,334) per forecourt bottom.

Over this period, Jumeirah Bay Island and District One in Dubai recorded the most significant increases in their average deals rates of28.5 per cent and22.4 per cent, independently.

Super-prime units within named submarkets covered by CBRE registered average selling prices of AED34.1 m($9.3 m) in the last quarter of the time, supported by high- value deals on Emirates Hills and Jumeirah Bay Island.

Taimur Khan, Head of Research – MENA at CBRE in Dubai, said “ In the time ahead, we anticipate that given the lack of new force, price growth in the high andsuper-prime parts of the request are likely to remain fairly strong, although we do anticipate the rate of price growth to taper off kindly slightly. ”