In November, the total number of residential transactions conducted in Dubai were 9,034, which marked a 13% decline as compared to last year.
CBRE, the leading real estate expert, revealed that the activity levels had slowed down because of a decline in off-plan sales by almost 26.4%.
Data from CBRE showed that secondary market sales had recorded growth, as they climbed year-to-date in November by 5.1%.
It said that the total volume of transactions recorded was the highest level to date, as it reached 112,356.
CBRE further said that the residential market in Dubai has begun experiencing a bit of moderation in its price growth.
In the year to November 2023, there was an 18.9% growth in average prices, which was a decline from 19.1% in October.
During this period, there had been an increase of 18.3% in average apartment prices, while a 22.2% increase was recorded in average villa prices.
The average apartment prices as of November 2023 stood at AED 1,374 per square feet, while average villa prices had reached AED 1,679 per square feet.
The average apartment sales had reached a record high back in 2014 and the numbers are still 7.7% lower as compared to the peak.
However, there are some submarkets that have managed to surpass the comparable figures from 2014. As compared to 2014, the average villa sales have increased by 16.2%.
The CBRE data showed that the highest sales rate in the apartment segment had been recorded in Jumeirah at AED 2,497 per square feet.
As for the villa segment of the market, it was Palm Jumeirah that recorded the highest sales rate at AED 5,217 per square feet.
The rental market also continued to see a moderation in the growth rate. There had been a 19.2% growth recorded in average residential unit rents in Dubai in the year to November 2023.
This was a drop from a month earlier, when the growth stood at 19.7%. During the same period, there was a 19.6% increase in apartment rents, while villa rents grew by 16.6%.
The average annual apartment rent climbed to AED 111,622, while that of villas reached AED 324,835. The highest average annual rents for both apartments and villas were recorded in Palm Jumeirah.
The rents climbed to AED 258,335, while the average rents in Al Barari reached AED 1,150,552. Head of Research at CBR, Taimur Khan, said that the residential market in Dubai has continued to see its total rise.
He said that in the year to November 2023, the total number of transactions that took place were 112,356, which was an increase of 22.5% from the total recorded last year.
He said that large portfolio transactions had helped bolster the total in 2023, along with the delayed registrations seen in the last few months.
However, he added that the number of transactions were expected to decline in the coming months with the decline in off-plan sales.
He said that the slowdown in transaction volume would drive a moderation in the rental growth and the rate of price growth.