The Dubai real estate market experienced a dynamic year in 2023, witnessing record-breaking levels in the sale of high-value properties, according to real estate consultancy CBRE. The market, marked by a surge in transactions for properties valued at over Dh5 million and Dh10 million, demonstrated resilience despite an overall decline in sales within the prime and super-prime segments.
CBRE reported that properties exceeding Dh5 million and Dh10 million recorded 10,296 and 3,806 transactions in 2023, showcasing substantial increases of 54.5% and 68.4%, respectively. Notably, off-plan sales played a pivotal role, constituting 67.2% and 70.8% of total transactions for properties in the Dh5 million plus and Dh10 million plus categories.
A noteworthy aspect of this trend was the significant proportion of sales occurring in emerging developments, emphasizing the demand for projects in prime and super-prime areas. Designated prime and super-prime locations include Downtown Dubai, Emirates Hills, Jumeirah Bay Island, Palm Jumeirah, and District One.
Despite an overall decline of 15.5% in the total sales volume within the prime segment and 3.1% in the super-prime segment, Palm Jumeirah emerged as the leader with the highest transaction volume. It recorded 963 units sold above Dh5 million and 593 properties sold above Dh10 million.
In terms of price growth, the average prices within the prime segment reached Dh4,604 per square foot in Q4 2023, indicating a 22.5% increase year-on-year. Leading this surge were Jumeirah Bay Island and District One, with year-on-year growth rates of 35.6% and 27.2%, respectively. The average sales value of prime residential assets monitored by CBRE in these communities reached Dh28.3 million.
The super-prime segment also experienced significant growth, with average prices increasing by 20.4% to Dh4,900 per square foot. Jumeirah Bay Island and District One led this growth with the most substantial increases in average sales rates of 28.5% and 22.4%, respectively. Super-prime units in selected submarkets monitored by CBRE achieved average selling prices of Dh34.1 million in the last quarter of the year.
Looking ahead, Taimur Khan, Head of Research for Mena at CBRE in Dubai, anticipates continued strong price growth in the prime and super-prime segments due to limited new supply, although the rate of growth is expected to moderate slightly in the coming year. The market’s resilience and the heightened demand for high-value properties position Dubai’s real estate landscape for ongoing transformation.
