Dubai real estate 2023 performance is unique

A specialist review

*Real estate transactions exceeded half a trillion dirhams for the second year in a row

*Annual real estate sales increased 5 folds since the Covid-19 pandemic

*The demand momentum continues and 2024 prospects are tremendous

Walid Al Zarooni

Dubai, United Arab Emirates:Sunday, January 14, 2024

 A review by W Capital, the leading Dubai real estate brokerage, showed that 2023  real estate performance in Dubai  was exceptional, as sales exceeded about AED400bn for the first time, in addition to making the largest land and apartment sales deals.

“The real estate market in Dubai is on  an upward trajectory since recovering from the Covid-19 pandemic in 2020, rising from AED69.8bn in 2020, to AED149bn in 2021, then to AED265.5bn in 2022, and finally to AED401bn last year,” said Real estate expert Walid Al Zarooni, W Capital CEO.

 

Al Zarooni added that these exceptional numbers from Dubai Land Department- DLD, show that real estate sales in Dubai multiplied by about 5 folds last year, compared to 2020. This is an indication of the strong and continuous momentum within the market and the status of Dubai real estate that it has reached globally as the best city to live and work.

The Expert revealed that 2023 transactions increased by more than 32% on an annual basis to about 129.000 sales transactions, which is the highest ever, compared to 97.450 sales transactions in 2022.

Walid Al Zarooni pointed out that the value of real estate transactions (sales + mortgages + gifts) increased in 2023 by about 5% to AED554.7bn, compared to AED528bn in the previous year, exceeding the level of half a trillion dirhams for the second time in a row. The total 2023 real estate transactions also increased by more than 38% on an annual basis to 169,720 real estate transactions, compared to 122,658 transactions in 2022.

He explained that the value of mortgages amounted to AED121bn with 33,280 deals, while gifts values topped AED32.65bn with 7,460 deals.

 

Best quarterly sales ever

During the fourth quarter of 2023, the Dubai real estate sector achieved the highest quarterly sales ever, with more than AED112.6bn recorded, distributed over more than 31,250 transactions.

Thus, the value of real estate sales recorded in Dubai during the three months ending in December 2023 increased by 3.3% on a quarterly basis, compared to sales recorded in the third quarter of the same year by AED109bn.

An exceptional month

According to DLD data, November was the best month of the year in terms of sales value, exceeding AED42bn, the highest monthly value of real estate sales deals reaching 12,150, followed by October with AED39.2bn, through 11,910 deals, then September with AED37.8bn through 13,595 deals, then July, with sales amounting to AED37.6bn through 11,120 deals.

The top 10 land sales deals

The largest land sale deal in terms of value and area since the beginning of this year came in the “Maqtara” area, for residential purposes, with a value of AED3.87bn on an area of 203 million square feet, at 19 dirhams per foot.

The second was the deal of a plot of land for commercial purposes, also in the “Yalabs 5” area, at a price of AED2.427bn, with an area of 83.86 million square feet, at a price of 28.94 dirhams per foot.

The third was a plot of land for residential purposes, also in the “Al Sufouh 2” area, at a value of AED1.834bn, with an area of 2.75 million square feet, at a price of 666.2 dirhams per foot.

Also, a deal to sell land for residential purposes in the “Al Sufouh 2” area came in fourth place, with a value of AED630.79 million , with an area of 33.108 million square feet, at a price of 19.05 dirhams per foot.

The fifth  was a deal to sell land for commercial purposes in the “Dubai Marina” area, valued at AED622.9 million, with an area of 114.4 thousand square feet, at a price of 5,444 dirhams per square foot.

The deal to sell land for commercial purposes in the “Zabeel II” area came sixth, with a total price of AED 600 million, for an area of 138.46 thousand square feet, at a price of 4,333 dirhams per square foot.

The “Business Bay” area deal to sell land for residential purposes was the seventh, at a value of AED456.25 million, with an area of 56,937 thousand square feet, at a price of 8,013 dirhams per square foot.

In eighth place was a deal to sell land for residential purposes in the Al Wasl area, at a value of AED397 million, for an area of about 76.75 thousand square feet, at a price of 5,173 dirhams per square foot.

The ninth deal was the sale of a plot of land for residential purposes in the Dubai Water Canal area, with a total value of AED368.73 million, with an area of 100,000 square feet, at 3,682 dirhams per foot.

The last was the sale of a plot of land for residential purposes in Dubai Marina, valued at AED360, with an area of 37,677 thousand square feet, at 9,544 dirhams per square foot.

The top 10 apartment deals in 2023

At the top of the list was the deal to sell a residential apartment in Marsa Al Arab at AED420 million, with an area of 27,143 thousand square feet, at a price of 15,473 dirhams per foot.

Also in the “Marsa Al Arab” area, the second largest residential apartment sale deal valued at AED268 million, with an area of 19.26 thousand square feet, at a price of 14,846 dirhams per foot.

In third place was the sale of an apartment in Dubai Marina, valued at AED154 million, with an area of 351,000 square feet, at a price of 440 dirhams per square foot.

The fourth was a residential apartment sale deal in the “Al Jazeera 2” area for AED143 million, with an area of 11.65 thousand square feet, at a price of 12,312 dirhams per foot.

In fifth place was the sale of a hotel apartment in the “Business Bay” area, valued at AED125 million, with an area of 269 thousand square feet, at a price of 464 dirhams per square foot.

A deal concluded to sell a residential apartment in the “Jazira 2” area for a value of AED112 million was the sixth on the list, with an area of 11,654 thousand square feet, at a price of 9,609 dirhams per foot.

In seventh place was the sale of a hotel apartment in the “Marsa Al Arab” area, valued at AED76.5 million, with an area of 4,786 square feet, at a price of 15,984 dirhams per foot.

The eighth was the sale deal of an office apartment in Burj Khalifa, valued at AED49.4 million, with an area of 8,806 square feet, at a price of 5,614 dirhams per foot.

In ninth place was the deal to sell a hotel apartment in Jumeirah Beach Residence, worth AED47.5 million, with an area of 5,010 square feet, at a price of 9,480 dirhams per foot.

 The last on the list was the deal to sell a commercial unit in Burj Khalifa, worth AED44.5 million.

Dubai real estate prospects in 2024

Walid Al Zarooni expected that the historical momentum will continue this year after the significant growth in the year 2023, while the real estate sector in Dubai is approaching the fourth year of successive price increases in the third market cycle. It will also be a matter of time to know whether the sector make new record numbers in the new year, whether or not this currently recorded number is broken, as demand is expected to continue to grow and prices to rise, making the Dubai real estate market fertile environment for investments.

The CEO said that these unprecedented sales numbers embody the strength of growth in luxury real estate, where Dubai holds the global lead, and in the medium-sized real estate sector and commercial and hotel units.

Walid Al Zarooni stated that Dubai provides a legislative frame that takes into account the rights of everyone, maintains the discipline of citizens and foreigners alike without discrimination, as well as speedy litigation, which increases investors’ confidence and motivates them to pursue permanent residency. Dubai also apply the best practices and legislation within the real estate market, which regulates the operations of property ownership, off-plan sales, or rentals.

Al Zarooni stressed that the most recent review of the prospects for real estate sales in Dubai indicate that the main residential real estate markets in may remain in the focus of attention of investors during the year 2024, as they remain a destination for investors wishing to obtain affordable investment opportunities with good, long-term investment returns.

Dubai real Estate Sales(2000-2023)

Year	Deals value/AED-bn	Number of deals
2023	401	129000
2022	265.5	97446
2021	149	60231
2020	69.8	33962
2019	76.7	37657
2018	73.7	32495
2017	113.9	46501
2016	103.1	40706
2015	124.1	46643
2014	136.6	55642
2013	141.2	63555
2012	73.2	37783
2011	59.3	31107
2010	78.9	45184
2009	137.2	85716
2008	110.1	23834
2007	52.7	9209
2006	18.9	2699
2005	15.8	2594
2004	11.8	2839
2003	6.5	2071
2002	4.5	1908
2001	3.3	1440
2000	1.9	920

SOURCE: DLD data

Dubai 2023 real estate sales on monthly basis

Month	value/AED-bn	Number of deals
January	27.6	9570
February	27	9380
March	34.2	12000
April	26.3	8000
May	34	11660
June	30.5	10530
July	37.6	11120
August	33.6	11830
September	37.9	13590
October	39.2	11910
November	42	12150
December	31.5	7180

SOURCE: DLD data

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About “W Capital”:

“W Capital Real Estate Brokerage” was established in 2007 in the United Arab Emirates, specializing in real estate development, buying, selling, renting as well as consulting services for real estate companies.

Since its inception, the company has sold over AED 200 million of properties to major developers.

About Walid Al Zarooni:

Walid Al Zarooni is the founder and Chairman of W Capital Real Estate Brokerage. A certified real estate expert from the Dubai Real Estate Regulatory Agency “RERA”, he is the author of “Secrets of the Smart Real Estate Investor”.

Al Zarooni is one of the first experts to harness social media to raise the public awareness about real estate. He provides almost free advice on a daily basis, as well as latest news and updated information through videos and posts on social media platforms such as ” Instagram “,“ Snapchat ” and “Twitter”, on which he is very active.