Market Insights: December

Dubai property prices closed 2023 with a 0.8% monthly increase, seeing year-end growth hit 16.4%, the highest in over a decade

Prices currently stand at AED 1,281 per square foot, nearing 4% above the September 2014 all time peak

A record AED 500 million penthouse sold on Palm Jumeirah, breaking the apartment price record for a 3rd time

The unrelenting Dubai real estate market closed 2023 by continuing to break records, with a 0.8% monthly price increase seeing year-end growth reach a decade high of 16.4%. According to the latest Property Monitor DPI, average prices now stand at AED 1,281 per square foot, nearing 4% above the previous September 2014 peak.

Over the past 38 months, prices have risen 45.7%, averaging 1.37% monthly appreciation this year. While significant new luxury project launches have driven robust higher-end growth, completed property price appreciation remains positive but more modest in comparison.

December marked the highest ever transaction volume for the month, at 11,016 sales in total. Meanwhile, annual volumes eclipsed 133,673, representing a 38.4% increase year-on-year and over 35,000 transactions higher than the preceding 2009 record.

In December, the sub-500k tier saw the fastest growth, increasing 1.9% to capture 8.1% market share. This came after hitting lower levels in November. Growth was partly fueled by 138 units sold in Eastern Residences at Falcon City of Wonders.

The AED 2-3 million tier shed the most share, decreasing 3.4% to 14.8%. Meanwhile, the AED 1-1.5 million and 1.5-2 million tiers collectively grew 3.6%, partly attributed to mid-range offerings at Golf Greens DAMAC Hills averaging AED 1,564 per square foot, upper-mid units at The Edge in Business Bay averaging AED 2,197 per square foot, and luxury apartments at Rove Downtown averaging AED 3,199 per square foot.

Grouping the nine tiers into three broader segments, the crucial AED 1-3 million tier accounted for 44.6% share, ticking up 0.2%. Sub-1 million tiers climbed 1.8% to 33.0% share, and over-3 million luxury tiers decreased 2.0% to 22.4% share.

Over the past 34 months of Dubai real estate's bull run, the price tier evolution shows prices have appreciated by an impressive 45.7% since October 2020. Annually, price tiers are up 17.66% in December 2023.

Underpinned by strong demand and accelerating transaction volumes, the DPI looks poised to continue its upward trajectory barring significant economic disruption. With prices and index values breaking new ground, Dubai real estate's dynamism shows little sign of slowing as 2023 draws to a close.

By submitting this form you agree to subscribe to updates from M&M Real Estate and be sent information in relation to its products and services.