In the third quarter of 2023, Dubai's residential rentals increased by 27.2 percent from the same period the previous year and by 2.1 percent from the preceding quarter. Villa rents increased 38.7% yearly, although there was no movement from the previous quarter, according to ValuStrat's Q3 report.
Three-bedroom villas rented for an average of Dh312,000 a year, four-bedroom villas for Dh383,000, and five-bedroom villas for Dh492,000. The asking rent for apartments increased by 3.6% QoQ and 19.1% YoY. Studio apartments had an average annual asking rent of Dh51,000, one-bedroom apartments Dh75,000, two-bedroom apartments Dh111,000, and three-bedroom apartments Dh170,000. In Dubai, the third quarter's expected residential occupancy rate was 88.9%.
A CBRE Group analysis states that, in the year ending in September 2023, average residential prices in Dubai climbed by 19.6%. During this same time, average prices for apartments and villas increased by 19.7% and 18.9%, respectively.
Regarding supply, it is expected that 27,095 residential units have been supplied so far this year, with 46.4 percent of that supply being found in Meydan One, Downtown Dubai, and Business Bay. According to the CBRE estimate, 34,651 more units should be delivered for the rest of the year.
According to data from the Dubai Land Department, the third quarter of 2023 saw extraordinary growth in the real estate sector in Dubai. Transactions have increased by 22%; in Q32023, 31,216 transactions were made, up from 25,503 during the same time in 2022. The overall value of these transactions, which reached Dh 97.55 billion, a stunning 40% rise from Dh 69.5 billion in Q3 2022, reflects this jump in transactional activity.
Office space in Dubai saw yearly capital gains of 25.5% during the third quarter. Office transitions increased by 9.0% YoY in Q32023, while QoQ decreased by 4.7%, with 631 transactions. The median transaction price was Dh11,140 per square metre (ADh1,035 per square foot), up 28.4% yearly and 9.1% quarterly.
