The residential transactions in Dubai reached record highs in the first 11 months of 2023, even though November saw a decline in off-plan sales due to the slight moderation recorded in the price surge.
However, the total residential transactions in November in Dubai declined 13.2% to reach 9,034, as opposed to last year.
According to the CBRE, off-plan sales in November recorded a decline of 26.4%, while a 5.1% increase was seen in secondary market sales, thereby leading to a slowdown in overall activity levels.
The total volume of transactions in the year-to-date to Novembr was 112,356. CBRE said that this was the highest number recorded to date.
There was a significant growth in the real estate market in Dubai in the first nine months, as the transaction value rose by 36.7%.
Meanwhile, the number of transactions recorded an increase of 33.8% as compared to the same period last year.
The Dubai Land Department (DLD) attributed this growth to the robust infrastructure, global reputation and the commitment of the city’s leadership to development.
About 116,116 real estate transactions took place during this period and they were valued at AED 29.67 billion.
There was a steady growth in real estate investments, as a total of 109,186 investments were registered by 81,669 investors, which were valued at AED 278.7 billion.
This was a rise in value of 50.3%, while the number of investments went up by 33.3% and the number of investors rose by 37.4%.
According to CBRE, the price growth in the residential market in Dubai was now experiencing a slight moderation.
There was an 18.9% increase in average prices in the year to November, while they had stood at 19.1% in October.
The rental market has also continued to record a moderation in the growth rate, as average residential rents rose by 19.2% in Dubai in the year to November, a decline from 19.7% in November.
During the same period, there was an increase in the rent of average apartments by 19.6% and villas by 16.6%.
The average annual apartment rents climbed to AED 111,622, while average villa rents reached AED 24,835.
Palm Jumeirah recorded the highest average annual rents for both apartments and villas, as the average rents climbed to AED 258,335.
According to CBRE, large portfolio transactions have helped in bolstering the total this year, as have delayed registrations seen in the last few months.
But, the coming months are also expected to see transactions continue to decline. This is mostly because of the fall in off-plan sales that has been seen.
This is understandable, as developers seem to be focusing on delivering on the significant number of projects that have been newly launched.
As these transactions continue to slow down, they are expected to lead to a moderation in the rate of rental as well as price growth in Dubai’s residential market