Market Insights: September 2023

The Dubai real estate market experienced another upswing in September, with the Dynamic Price Index (DPI) reaching 172.04. This marks a 1.35% increase from August 2023 and a 17.74% rise from September 2022, according to Property Monitor data. The average property price per sq ft now stands at AED 1,232 compared to AED 1,216 in August.

Even more impressively, prices have now been on a rising streak for the last 31 months, and they’re just 0.12% below the previous market peak of September 2014.

Other figures broadly remained on a similar level to those of August. The highest recorded transaction of the month was AED 202 million, compared to a previous AED 209 million. Similarly, the gross rental yield was 6.69%, down slightly from 6.74%. However, there was a dip in the number of monthly transactions, with the total down from 12,134 to 7,846.

The AED 3 million to AED 5 million tier emerged as the standout performer, growing by 4.5% and reaching a total market share of 16.7%. This growth can be attributed to the success of two distinct projects: Rivana in The Valley, which achieved impressive sales in the high-end townhouse category at AED 984 per sq ft, and Bayview at Emaar Beachfront, where ultra-luxury apartment sales averaged AED 5,272 per sq ft. Conversely, the AED 10 million and above tier, which had reached an all-time high the previous month, decreased by 2.9%, falling to 2.5%.

When categorising the nine individual price tiers into three primary groups, investors can ascertain properties valued between AED 1 million and AED 3 million, representing the mid-tier, continue to account for the largest market share at 47% - a 3.6% m-o-m growth. The low-price tiers, featuring properties below AED 1 million, now constitute 29.3% of the market, marking a 2.8% decline from July. The top end of the market contracted 0.8% after July's gains, falling back to represent a 23.7% market share.

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