Dubai: In November 2023, the total number of residential transactions in Dubai stood at 9,034, down 13. 2% compared to the previous year. This slowdown in activity levels has been driven by a decline of 26.
4% in off-plan sales, whereas secondary market sales registered an increase of 5. 1%. In the year to date to November 20231, the total volume of transactions reached 112,356.
This is the highest level on record to date. Dubai’s residential market has started experiencing a slight moderation in price growth, where in the year to November 20232, average prices grew by 18. 9%, down from 19.
1% a month earlier. Over this period, average apartment prices increased by 18. 3% and average villa prices by 22.
2%. As at November 2023, average apartment prices reached AED 1,374 per square foot, and average villa prices reached AED 1,679 per square foot. These average apartment sales rates are still 7.
7% below the record highs registered in 2014, although a number of submarkets have long surpassed their 2014 comparable figures. The average villa sales rates are currently 16. 2% above the 2014 levels.
Jumeirah registered the highest sales rate per square foot in the apartment segment of the market at AED 2,497, whilst Palm Jumeirah registered the highest sales rate per square foot in the villa segment of the market at AED 5,217. In the rental market, we continue to witness a moderation in the rate of growth, where in the year to November 2023, average residential rents in Dubai grew by 19. 2%, down from 19.
7% a month earlier. Over the same period, average apartment and villa rents increased by 19. 6% and 16.
6%, respectively. The average annual apartment and villa rents reached AED 111,622 and AED 324,835, respectively. The highest average annual apartment and villa rents were respectively seen in Palm Jumeirah, with average rents reaching AED 258,335, and in Al Barari, with average rents reaching AED 1,150,552.
Taimur Khan, Head of Research – MENA at CBRE in Dubai, comments: “Dubai residential market continues to extend its record-breaking total, with 112,356 transactions taking place in the year to date to November 2023. This is up by 22. 5% from its 2022 full-year total.
The 2023 total has been bolstered by large portfolio transactions and delayed registrations in the last couple of months; however, we expect the number of transactions to continue to recede in the coming months. This is expected to be largely underpinned by decreasing levels of off-plan sales, understandably so with developers looking to deliver the somewhat significant quantum of recently launched projects. In turn, we expect this slowdown in transaction volume to continue to support moderation in the rate of price and rental growth.
” 1 Refers to the time period between January 2023 and November 2023 2 Refers to the time period between November 2022 and November 2023 About CBRE Group, Inc. CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2022 revenue).
The company has approximately 115,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.
cbre. com . .
From: zawya
URL: https://www.zawya.com/en/press-release/companies-news/dubais-residential-transactions-reach-new-record-highs-in-november-2023-says-cbre-n1sy0fje
