The most sought-after locations in the emirate’s real estate market are revealed in the Dubai real estate market report for the third quarter of 2023, released by the real estate portal in the Emirates.
The study’s release coincides with the introduction of Bayut GPT, the first artificial intelligence-powered virtual real estate search assistant in the world. It offers prospective homeowners access to a vast data repository and is intended to help them make better decisions and learn more in-depth information about the market.
According to the survey, which was based on platform search trends, Dubai’s real estate prices have been rising, which has made the market favorable for sellers and property owners. The sustained price increase is in line with patterns seen over the previous eighteen months, wherein increased demand and a larger number of newcomers have produced previously unheard-of booms.
The third quarter of 2023 saw a 2-12% increase in the sales prices of flats and villas in Dubai’s primary neighborhoods, according to data from Bayut.
According to the survey, which was based on platform search trends, Dubai’s real estate prices have been rising, which has made the market favorable for sellers and property owners. The sustained price increase is in line with patterns seen over the previous eighteen months, wherein increased demand and a larger number of newcomers have produced previously unheard-of booms.
The third quarter of 2023 saw a 2-12% increase in the sales prices of flats and villas in Dubai’s primary neighborhoods, according to data from Bayut.
Similar trends are seen for mid-range villas, with average selling prices increasing by 10–17% in the most sought-after neighborhoods. There were notable outliers, with sales transaction prices declining by 2% and 9%, respectively, in The Springs and Dubailand.
With the exception of Palm Jumeirah, where average transaction prices have continued to rise by 14–15%, most luxury apartment locations have consistently seen price rises of less than 5%.
In the third quarter of 2023, there were 30,981 residential real estate sales transactions (ready and under construction) valued at AED 96.9 billion, according to data from the Dubai Land Department.
Regarding the ROI, given the anticipated rental yields for flats, certain neighborhoods—such as Dubai Investment Park, Al Liwan, and Remraam—have shown returns of up to 10%, which is thought to be persuasive to potential investors. Areas like Al Barari and Jumeirah Golf Estates have provided remarkable returns of up to 8% when it comes to luxury apartments, which is significantly greater than most global markets.
Despite the fact that past price trends have typically shown that the summer months are a slower time for the real estate market because many residents are abroad, activity in 2023 remained strong even in July and August, when temperatures are at their highest. Even over the course of a full year, the volume of transactions in the last three months alone has surpassed 100 billion dirhams, an unparalleled amount.
According to the survey, there is an increasing demand for rental houses, particularly as more people are relocating to the United Arab Emirates in quest of safer living conditions and better employment prospects.
Haider Ali Khan, CEO of Bayut and President of Dubizzle Group in the Middle East and North Africa, commented on this, saying, “We are witnessing in the third quarter of 2023 what we are witnessing in the UAE market in general and Dubai in particular, and real estate trends remain very positive.”The truth is that this market is booming, despite the fact that significant global economic sectors are still experiencing a post-pandemic slump.
Haider Khan continued, saying that the UAE is headed for record-breaking growth in important industries including energy, real estate, and tourism. The best properties in Dubai should be highlighted, emphasizing the truthfulness of real estate ads and the actual availability of properties—two pillars of Bayut’s business model given the amount of attention Dubai is receiving these days.
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