Market Watch

Residential Real Estate

Annual Report - 2023

Abu Dhabi & Dubai

01
Abu Dhabi Real Estate
Performance
• Economic Overview
• Market Performance
• Market Trends

02
Dubai Real Estate
Performance
• Economic Overview
• Market Performance
• Market Trends

03
Mo'asher - 2023
• Sales Price Index
• Rental Performance
Index
Economic
UAE

Overview

United Arab Emirates

According to Reuters, the UAE economy grew by 3.7% in the first half of 2023, while the non-oil sector surged by
5.9% in the same period. Hence, in 2023, the UAE's economy is expected to grow by 3.38%, slowing down from
7.85% in 2022. This is demonstrated by the slow down in performance in the non-oil sector which constitutes about
75% of the nation's economy. Concurrently, there has been a noticeable dip in oil production growth. The recent
economic shifts align closely with the predictions of the Central Bank of the United Arab Emirates (CBUAE). The IMF
projections indicate that the UAE economy is going to see an average 4.25% increase in the next 5 years, achieving
a total AED 2067.1 Billion in 2028.

The UAE economy was affected due to the instability in the global markets such as the Russian-Ukrainian war, which
caused the OPEC+ to take a decision of reducing oil production in 2023. However, 2024 is likely to witness a
resurgence in oil output as certain production restrictions have been relaxed.

In December 2023, the Central Bank of the UAE (CBUAE) decided to maintain the Base Rate applicable to the
Overnight Deposit Facility (ODF) without change at 5.40%. This decision was taken following the US Federal
Reserve’s announcement on 13 December to keep the interest on Reserve Balances (IORB) unchanged. The CBUAE
has also decided to maintain the interest rate applicable to borrowing short-term liquidity from the CBUAE at 50
basis points above the Base Rate for all standing credit facilities. The Base Rate, which is anchored to the US Federal
Reserve’s IORB, signals the general stance of the monetary policy and provides an effective floor for overnight money
market interest rates in the UAE.

This introduction provides context for the real estate report on the UAE's economy.

,
3.4
UAE Annual GDP, Constant Prices UAE s GDP Estimated
Growth Rate in 2023

10.00%
8.00% 7.85%

6.00% 4.27% 4.36% 4.47%

4.36% 3.38% 4.01% 4.15%
4.00%
2.00% 1.31% 1.11%
0.74%
0.00%
2017 2018 2019 2020 2021 2022 2023e 2024e 2025e 2026e 2027e 2028e
2017 2018 2019 2020 2021 2022 2023e 2024e 2025e 2026e 2027e 2028e
-2.00%
-4.00%
-6.00% -4.96%
-6.14%
-8.00%
Source: IMF - Central Bank of the UAE

Market Watch Annual Report 2023 1

Abu Dhabi
Real Estate Performance

Market Watch Annual Report 2023 2

ABU DHABI

Economic
Overview
The Emirate of Abu Dhabi

In 2023, Abu Dhabi's economy performed well, supported by the growth in the non-oil sector which grew by
almost 6% in the first half YoY, especially the wholesale and retail sector which grew by almost 14% in the first half
of 2023. This contributed to almost 6% of the total GDP, and the manufacturing sector contributed to more than
8%, growing by 5.6% and 12.4% in Q1 and Q2 respectively.

Real Estate Activities and Construction Sector

Contribution to Abu Dhabi's GDP (AED Million)
28.532 27.308 26.319 26.113 28.504 27.386 27.863 27.633 29.377 30.428 31.146 31.851 32.691 35.149
35.000 10.00%

30.000 8.00%
6.00%
25.000
4.00%
20.000
2.00%
15.000
0.00%
10.000 -2.00%
5.000 -4.00%
0 -6.00%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023

Real Estate Activities And Construction Sector Value Growth Rate

The real estate activities and

construction sectors in Abu Dhabi Real Estate Activities Contribution to
grew by almost 13.4% YoY in the first Abu Dhabi's GDP (Constant Price)
half of 2023, contributing to almost
12% of the total GDP. The construction 7.544 7.783 7.989 8.930 9,201 9,306 9,355 9,308 9,866
12.000 12.00 %
sector was the main contributor to the
10.00 %
sectors’ growth with almost 17% in 10.000
the first half contributing to almost 8.00%
Million AED

8.000 11.78%

8.5% of the total GDP. The real estate 6% 6.00%

6.000
activities sector increased by 5.7% 4.00%
compared to the first half of 2022. 4.000 2.00 %
3.17% 3.03%
2.65%
2.000 1.14% 0.52% 0%
-0.5%
0 -2.00%
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2021 2021 2021 2022 2022 2022 2022 2023 2023

Construction Sector Contribution to

Abu Dhabi's GDP (Constant Price)

19,842 20.080 19,644 20,447 21,227 21,840 22,496 23,383 25,282

30.000 10.00 %
8.00%
25.000
Million AED

8.13% 6.00%
20.000 4.09%
3.82%
3% 4.00%
15.000
2.89%
3.94%
2.00%
10.000 -2.17% 0%
5.000
1.2%
-2.00%
0 -4.00%
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2021 2021 2021 2022 2022 2022 2022 2023 2023

Market Watch Annual Report 2023 3

ABU DHABI

Market
Performance

Total Sales Transactions - 2023

According to data from the Department of Municipalities and Transport (DMT), Abu Dhabi experienced a significant
surge in total sales transactions (both residential and commercial) in 2023. The number of transactions reached a
record high for a year, with 13,298 transactions compared to 7,602 transactions in 2022, reflecting a substantial
increase of 75%.

Residential transactions accounted for 97% of the total volume and approximately 85% of the overall value. The
transaction value amounted to AED 44 Billion, marking a remarkable 120% increase compared to AED 19.9 Billion
recorded in 2022.

The surge in transaction numbers indicates the confidence of investors in the Abu Dhabi real estate market. This
positive trend can be attributed to the government's ongoing efforts to enhance the investment environment and
regulatory framework, which have contributed to fostering a favourable investment climate.

Total Residential Sales Transactions - 2023 17,102

10.000
8,849
10,254
7,938 7,443
8.000

6.000
4,762
4,281
3,507 3,673 3,419
4.000 2,716 2,647 2,951
1,559 1,803
1,524
2.000

Q1-2022 Q2-2022 Q3-2022 Q4-2022 Q1-2023 Q2-2023 Q3-2023 Q4-2023

Source: Statistics Centre- Abu Dhabi (SCAD) Transaction Volume Transaction Value (AED Billion)

Insights

Total TransactionsYoY changesYoY Changes

in Volume Total Transaction
YoY changes in Value YoY Changes
in 2023 in Volume Value in 2023 (AED Billion) in Value

13,298 75%
75% 43.648
120% 120%

Market Watch Annual Report 2023 4

ABU DHABI

Market
Performance
Off-plan Sales
Transactions - 2023

The off-plan market in 2023 kept supporting the real estate market in Abu Dhabi.
There were 10,151 off-plan sales transactions compared to 5,095 transactions in
2022 representing 76% of the total transactions compared to 67% of the total
transactions in 2022, recording a significant year-on-year surge of 99% in terms
of volume and 174% increase in terms of value.

The off-plan sales transaction value in 2023 reached AED 35,570 Bilion
contributing to 81% of the total sales transactions value. This was a 174% increase
compared to 2022 when the total sales transactions value was AED 12,989 Billion
contributing to 65 % of the total value.

Off-Plan Sales Transactions - 2023 15,118

10.000

8.000 8,292
6,135 6,597
5,563
6.000

3,165 3,450
4.000
2,157 2,049 1,943 2,188 2,570
1,533 1,222
2.000
947
877

Q1-2022 Q2-2022 Q3-2022 Q4-2022 Q1-2023 Q2-2023 Q3-2023 Q4-2023

Source: Statistics Centre- Abu Dhabi (SCAD) Transaction Volume Transaction Value (AED Billion)

Insights

Off-plan Transactions YoY Changes Off-plan Transaction YoY Changes

in 2023 in Volume Value in 2023 (AED Billion) in Value

10,151 99% 35.570 174%

Total Transaction Volume Relative Distribution

42% 39% 32% 25% 27% 26% 19% 25%

61% 68% 75% 73% 74% 81% 75%

58%
Off-plan

Existing/Ready
Q1-2022 Q2-2022 Q3-2022 Q4-2022 Q1-2023 Q2-2023 Q3-2023 Q4-2023

Market Watch Annual Report 2023 5

ABU DHABI

Market
Performance
Existing/Ready Sales
Transactions - 2023

The existing/ready market in 2023 registered 3,147 transactions to represent around

24% of the total transactions compared to 2,507 transactions that contributed to 33%
of the total transactions in 2022. This was a notable growth of 26% from 2022. As for
the quarter-on-quarter performance, Q4 witnessed an increase of 2% compared to
831 transactions in Q3 2023.

By reaching AED 8.078 Billion, the existing/ready transaction value in 2023

contributed to 19% of the total sales transactions value compared to 35% in 2022.
The existing/ready transaction value witnessed a notable increase of 17% compared
to AED 6,890 Billion in 2022.

Existing / Ready Sales Transactions - 2023

2,252
1,974 1,983
1,802 1,881 1,962
2,000
1,517 1,597
1,500 Q3

1,000
849
500 763 831
647 667 704
612 581
0
Q1-2022 Q2-2022 Q3-2022 Q4-2022 Q1-2023 Q2-2023 Q3-2023 Q4-2023

Source: Statistics Centre- Abu Dhabi (SCAD) Transaction Volume Transaction Value (AED Billion)

Insights

Total Existing / Ready

Total Existing / Ready YoY Changes Transaction Value YoY Changes
Transactions in 2023 in Volume in 2023 (AED Billion) in Value

3,147 26% 8.078 17%

Total Transaction Value Relative Distribution

41% 34% 23% 25% 25% 12% 19%

56%

66% 77% 75% 75% 88% 81%

44% 59% Off-plan

Existing/Ready
Q1-2022 Q2-2022 Q3-2022 Q4-2022 Q1-2023 Q2-2023 Q3-2023 Q4-2023

Market Watch Annual Report 2023 6

ABU DHABI

Market
Trends
Abu Dhabi Market Trends - 2023

In this part, we are going to identify the top 5 demanded areas according to Property Finder’s most searched areas.
The top areas are determined as per the listings in our search engine, classified by residential apartments and
villas/townhouses for sale or rent purposes, along with the price movement for each location.

The Return On Capital Gains (ROCG) is calculated by comparing the average asking price of properties in 2022, to
their current value in 2023. The Return on Investment (ROI) is calculated by dividing the annual return on a rental
property by the total investment on the property in 2023.

Market Watch Annual Report 2023 7

ABU DHABI

FOR SALE IN 2023

TOP AREAS Apartments Villas & Townhouses

1. Al Reem Island 1. Yas Island

2. Yas Island 2. Saadiyat Island
3. Al Raha Beach 3. Al Reef
4. Saadiyat Island 4. Al Reem Island
5. Masdar City 5. Khalifa City

Saadiyat
Island

Al Reem
Island

Market Watch Annual Report 2023 88

Yas
Island

Al Reef

Masdar
Al Raha City
Beach

Khalifa
City

Market Watch Annual Report 2023 9

ABU DHABI

Market
Trends
Sales Market Trends
for Apartments - 2023

Property Finder’s proprietary data revealed that Al One 2022 2023 ROCG
Bedroom
Reem Island, Yas Island, Al Raha Beach, Saadiyat Island Average Price Average Price

and Masdar City were the preferred choices for those Al Reem Island 840,000 850,000 1.2%

who wanted to own an apartment for investment or Yas Island 916,500 950,000 3.7%
residence purposes in 2023.
Al Raha Beach 1,200,000 1,200,000 -

There has been an increase of 12% in the average asking Saadiyat Island 2,180,000 2,200,000 1%

price for apartments during 2023 compared to 2022, Masdar City 800,000 750,000 -6.25%
driven by studios and two-bedroom apartments.
Furthermore, the data reveals that the average sales
Two
price for a one-bedroom apartment witnessed a slight Bedrooms
2022
Average Price
2023
Average Price
ROCG

increase from AED 1.23 Million to AED 1.24 Million, Al Reem Island 1,300,000 1,400,000 7.69%
while a two-bedroom apartment increased from AED
1.9 Million to AED 2.2 Million. The average sales price Yas Island 1,600,000 1,700,000 6.25%

for a three-bedroom apartment also stood at Al Raha Beach 1,500,000 1,745,000 5.8%
AED 3 Million. Saadiyat Island 3,900,000 4,471,000 14.6%

Saadiyat Island experienced the most significant change Masdar City 1,100,000 1,100,000 -

in average prices among the most searched areas in Abu

Dhabi, with a 17% ROCG for three-bedroom apartments Three 2022 2023 ROCG
compared to 2022 and 15% for two-bedroom Bedrooms Average Price Average Price

apartments. Despite the global economic changes, Al Reem Island 1,957,150 2,085,000 6.53%

the luxury real estate market in Saadiyat Island Yas Island 1,887,500 1,900,000 0.66%
demonstrates impressive durability. Upscale properties
persistently maintained their value, exhibiting a Al Raha Beach 2,500,000 2,500,000 -

consistent rate of growth during the initial half of 2023. Saadiyat Island 6,400,000 7,500,000 17.19%

Masdar City N/A N/A N/A

Market Watch Annual Report 2023 10

ABU DHABI

Market
Trends
Sales Market Trends
for Villas - 2023

According to Property Finder’s proprietary data, the Three

Bedrooms
2022
Average Price
2023
Average Price
ROCG
average asking price for villas increased by 12%
compared to 2022, due to the surge of asking prices for Yas Island 4,400,000 4,500,000 2.27%

three and four-bedroom villas. As for affordable and Saadiyat Island 5,800,000 8,000,000 37.93%
luxurious villas or townhouses, home buyers' top picks Al Reef 1,575,000 1,600,000 1.59%
for 2023 were Yas Island, Saadiyat Island, Al Reef, Al
Reem Island and Khalifa City. Al Reem Island 3,700,000 3,450,000 -6.76%

Khalifa City 3,063,000 2,580,000 -15.77%

In terms of the average sales price for villas or
townhouses in 2023, the data reveals that the sales
price for three-bedroom villas or townhouses
increased from AED 3.7 Million to AED 4 Million, while
the sales price for a four-bedroom villa or townhouses Four 2022 2023 ROCG
Bedrooms Average Price Average Price
increased from AED 4.7 Million to AED 5.4 Million,
while the sales price for five-bedroom villa or Yas Island 5,900,000 6,000,000 1.69%

townhouses decreased from AED 8.5 Million to AED Saadiyat Island 8,099,999 9,000,000 11.11%
7.5 Million. Al Reef 2,219,000 1.48%
2,187,124

In the top 5 areas, Yas Island, Al Reef and Saadiyat Al Reem Island 3,264,440 3,359,000 2.88%

Islands are the only areas that experienced steady and Khalifa City 4,159,000 3,895,000 -6.35%
moderate growth. The average asking price for
five-bedroom villas in Al Reef increased by 11.8%
compared to 2022. Additionally, five-bedroom villas in
Yas Island saw an increase of 6.3%.
Five 2022 2023 ROCG
Bedrooms
Saadiyat Island emerged as one of the most searched Average Price Average Price

areas for home seekers in Abu Dhabi during 2023, with Yas Island 6,400,000 6,800,000 6.25%

the average asking price for a three-bedroom villa Saadiyat Island 17,506,332 17,732,000 1.29%
reaching AED 8 Million, which had the highest return
Al Reef 2,528,504 2,826,000 11.76%
on capital gains, by recording a growth of 38% for
three-bedroom villas. Al Reem Island N/A N/A N/A

Khalifa City 6,340,441 6,031,000 -4.88%

Market Watch Annual Report 2023 11

ABU DHABI

FOR RENT IN 2023

TOP AREAS Apartments Villas & Townhouses

1. Al Reem Island 1. Khalifa City

2. Al Raha Beach 2. Mohamed Bin Zayed City
3. Khalifa City 3. Yas Island
4. Corniche Road 4. Al Reef
5. Al Khalidiya 5. Saadiyat Island

Saadiyat
Island

Corniche Al Reem
Road Island

Al
Khalidiya

Market Watch Annual Report 2023 12

Market Watch Annual Report 2023 13
ABU DHABI

Market
Trends
Rental Market Trends
for Apartments - 2023

Property Finder’s proprietary data revealed that Al Reem One

Bedroom
2022
Average Price
2023
Average Price
ROI
Island, Al Raha Beach, Khalifa City, Corniche Road and Al
Al Reem Island 58,000 60,000 7.06%
Khalidiya remained the top preferred choices among renters
in 2023 for apartments. Al Raha Beach 65,000 64,000 5.39%

Khalifa City 41,000 42,000 4.67%

The average rental prices in 2023 increased by 8.7%
compared to 2022. One-bedroom apartment rents Corniche Road 84,951 87,000 6.80%

increased from AED 62 thousand to AED 66 thousand, Al Khalidiya 60,000 60,000 N/A
two-bedroom apartment rents rose from AED 89 thousand
to AED 94 thousand, while three-bedroom apartment rents
Two
increased from AED 123 thousand to AED 131 thousand. Bedrooms
2022
Average Price
2023
Average Price
ROI

Al Reem Island 85,499 88,000 6.29%

In Khalifa City, one-bedroom apartment rents increased by
2.4%, two-bedroom apartment rents rose by 6.7% and Al Raha Beach 105,692 107,000 5.73%

three-bedroom apartment rents increased by 12.5%. Al Khalifa City 60,000 64,000 4.45%
Reem Island saw a 3.5% increase in one-bedroom Corniche Road 115,000 115,000 N/A
apartment rents and a 3% rise in two-bedroom apartment
rents, while three-bedroom apartment rents increased by Al Khalidiya 82,500 77,000 7.70%

1.6% compared to 2022.

Three 2022 2023
Regarding the Return On Investment (ROI) for the most Bedrooms Average Price Average Price ROI

in-demand areas in Abu Dhabi, not all areas have units for Al Reem Island 126,000 128,000 6.14%
sale to calculate rental yields. Property Finder's listings
reveal that Al Khalidiya has the highest ROI for Al Raha Beach 162,223 164,000 6.20%

two-bedroom apartments, with 7.7%, followed by Al Reem Khalifa City 80,000 90,000 4.59%
Island with roughly 7.1% for one-bedroom apartments and Corniche Road 150,000 155,000 6.60%
6.3% for two-bedroom apartments.
Al Khalidiya 100,000 100,000 2.50%

Market Watch Annual Report 2023 14

ABU DHABI

Market
Trends
Rental Market Trends
for Villas - 2023

Property Finder’s proprietary data revealed that Khalifa

City, Mohamed Bin Zayed, Yas Island, Al Reef and Saadiyat
Island were preferred by renters in 2023 for villas. Three
Bedrooms
2022
Average Price
2023
Average Price
ROI

Khalifa City 130,000 140,000 5.43%

Regarding the rents in 2023, the data indicates an
increase of 9% in the average rents for villas compared to Mohamed Bin Zayed City 115,000 110,000 N/A

2022. This increase is primarily supported by the rise in Yas Island 230,000 250,000 5.55%

rents for four and five-bedroom villas. The average rent of Al Reef 98,000 100,000 6.25%
a four-bedroom villa increased from AED 214 thousand to Saadiyat Island 297,000 300,000 3.75%
AED 235 thousand, while the average price of a
five-bedroom villa increased from AED 258 thousand to
AED 279 thousand. Four
Bedrooms
2022
Average Price
2023
Average Price
ROI

In 2023, the most demanded areas showed varied results

Khalifa City 155,000 160,000 4.11%

in terms of rental prices. Saadiyat Island and Yas Island Mohamed Bin Zayed City 133,000 134,000 N/A

witnessed the highest increase in rental prices for Yas Island 280,000 320,000 5.33%
four-bedroom villas/townhouses, with a 16% and 14% Al Reef 140,000 141,000 6.14%
rise, respectively.
Saadiyat Island 370,000 430,000 4.78%

In terms of Return On Investment (ROI), the most

demanded areas in Abu Dhabi had different yields. Five 2022 2023 ROI
Bedrooms Average Price Average Price
According to the listings on Property Finder, Al Reef had
the highest ROI for three-bedroom villas, with 6.25% Khalifa City 165,000 170,000 3.18%

while four and five-bedroom witnessed 6.14% and 6.2% Mohamed Bin Zayed City 150,000 150,000 2.31%

respectively. Yas Island had an ROI of around 5.6%, 5.3%, Yas Island 300,000 320,000 4.71%
and 4.7% for three, four and five-bedroom villas
respectively.
Al Reef 150,000 163,000 6.20%

Saadiyat Island 525,000 600,000 3.87%

Market Watch Annual Report 2023 15

Dubai
Real Estate Performance

Market Watch Annual Report 2023 16

Economic
DUBAI

Overview
The Emirate of Dubai

Construction and real estate sectors faced a decline in 2020 of almost 4.7% and 7.4% respectively due to
Covid-19, but the real estate sector started recovering rapidly in the next year achieving a 14.7% growth rate. The
construction sector suffered for three full years, but it started recovering to see a positive growth rate starting in
the beginning of 2023 and achieved a 1.9% growth rate in the first half of 2023.

According to the recent data released by the Dubai Statistics Center, the real estate and construction sectors in
Dubai grew by 3.6% and 1.9% respectively in the first half of 2023 and together accounted for almost 14.4% of
Dubai’s total GDP in 2023.

According to the Central Bank of the United Arab Emirates, in Jan - Sep 2023, Dubai witnessed a significant
number of tourists, with a total of 12 million visitors. This means that the tourism sector has finally returned to
its values before Covid-19 which accounted in 2019 to 12.08 million visitors, showcasing a remarkable recovery.

Despite the growth in the number of tourist establishments from 10.12 million
in the first three quarters of 2022 to 12.4 million in 2023, and almost an
additional 5800 rooms becoming available, the hotel occupancy rate in Dubai
grew relatively to almost 75% during the first three quarters of 2023, from just

14.4
70% in the same period in 2022.

Real Estate Activities & Construction Sectors

Contribution to Dubai's GDP - H1 2023

Dubai Real Estate Activities & Construction

GDP Growth Rate
Construction
Real Estate Activities
20
14.7
15

10 6.2 7.6
4.6 3.1 3.6
5
5.0 1.3
2.8 1.9
0
-4.7
5 -3.3 -3.0
7.4
10
2017 2018 2019 2020 2021 2022 023 - H1

Market Watch Annual Report 2023 17

MARKET
DUBAI

Performance
Existing Off-plan
Total Sales Transaction 48.34% 51.70 %

Volume - 2023

38 %
Total Sales Transaction Volume - 2023
140,000 133,134
120,000
100,000 96,459

80,000
64,756
60,000 59,832
56,632
43,336 46,555
43,706
40,000 36,597 37,199 33,714
28,513 32,536
20,000
0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Source: Dubai Land Department

There were 133,134 registered sales transactions in 2023 compared to 96,459 transactions in 2022, recording a
sharp increase of 38% to be the highest performance for a year ever recorded, driven by the outstanding
performance of off-plan transactions.

In 2023, a total of 178 areas saw real estate transactions, with 55.2% of the total transactions being accounted for
by 10 areas. Leading the pack was Al Barsha South Fourth, which contributed to 10.7% of the total transactions,
followed by Business Bay at 7.7% and Marsa Dubai at almost 7.5%.

Interestingly, there was a significant increase in demand for places outside of the top ten areas, such as Al Yelayiss
2 which saw an almost 272% increase in transactions, as well as Al Barsha South Fifth with around 195% and
Madinat Dubai Almelaheyah by recording 2,083 sales transactions compared to 320 transactions in 2022.

Looking at the top ten areas in terms of transaction volume, Al Barsha South Fourth saw a notable increase of
138%, followed by Al Thanyah Fifth with an increase of 92.6% and Al Barsha South Third with an 87% increase.

The existing/ready transactions in 2023 contributed to 48.34% of the total sales transactions compared to 55.26%
in 2022. The off-plan transactions contributed to 51.7% of the total sales transactions compared to 44.7% in 2022.

Top 10 Areas For Total Transaction

Relative Distribution of Total Transactions Volume 2023 2023 vs 2022
by Area - 2023 Al Barsha South Fourth 148.17%
4.0%
Hadaeq Sheikh 3.9% Business Bay 4.69%
Mohammed Burj Khalifa 44.8%
Bin Rashid Rest of the Areas Marsa Dubai 36.43%
4.3% Al Merkadh 61.62%
Al Thanyah Fifth

6.8% 3.4%
Al Thanyah Fifth 92.60%
Al Merkadh
Al Khairan
First
Hadaeq Sheikh Mohammed Bin Rashid 53.77%
7.5%
Marsa Dubai Burj Khalifa 7.13%
55.2%
7.7%
Business Bay
Others
Wadi Al Safa 5 54.00%
10.7%
Al Barsha South Fourth 3.4% 3.6% Al Barsha South Third 87.20%
Al Barsha South Third Wadi Al Safa 5
Al Khairan First 30.78%

Source: Dubai Land Department Source: Dubai Land Department

Market Watch Annual Report 2023 18

MARKET
DUBAI

Performance
Off-plan Sales Transaction Volume - 2023

Off-plan sales witnessed a notable record by reaching 68,783 transactions in 2023 compared to 43,151 in 2022,
recording around a 59.4% increase to be the highest performance for a year ever recorded in the
off-plan market.

In 2023, a total of 45 areas saw off-plan transactions, with 70.4% of the total transactions being accounted for by
10 areas. Leading the pack was Al Barsha South Fourth, which contributed to 14.4% of the total transactions,
followed by Al Merkadh at 11%, and Marsa Dubai with over 7.8%. Interestingly, there was a significant increase
in demand out of the top areas, such as Madinat Dubai Almelaheyah which saw an almost 727% increase in
transactions, as well as Al Barsha South Fifth with around 312% and Wadi Al Safa 3 with 103%.

Looking at the top ten areas for the off-plan market in terms of transaction volume, Al Thanyah Fifth increased by
510%, with the number of transactions increasing from 461 to a record 2812 in 2023. Al Yelayiss 2 saw a
remarkable increase of 489% while Al Barsha South Fourth increased by 238%.

Total Off-plan Sales Transaction Volume - 2023

59.4 %
80,000
68,783

60,000

43,151
40,000

22,757 23,628
17,731 20,531
20,000 14,191 14,312 15,618 15,054
4,122 11,960
2,827
0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Source: Dubai Land Department

Top 10 Areas for Off-plan

Relative Distribution of Off-plan Transaction Volume 2023 2023 vs 2022
Transactions by Area - 2023 Al Barsha South Fourth 238%
5.3% 4.6% Al Merkadh 56%
Al Barsha South Third
Al Khairan First 31.6%
Rest of the Areas
5.6% Marsa Dubai 61%
Hadaeq Sheikh
Mohammed Bin
Rashid Business Bay -13%

7.7% 3.4%
Hadaeq Sheikh Mohammed Bin Rashid 100%
Business Bay
Al Yelayiss 2
Al Barsha South Third 100%
7.8%
Marsa Dubai
Al Khairan First 13%
11% 43.6%
Al Merkadh
Others
Wadi Al Safa 5 59%
14.4%
Al Barsha South 4.0% 4.6% Al Thanyah Fifth 510%
Fourth Al Thanyah Fifth Wadi Al Safa 5
Al Yelayiss 2 489%

Source: Dubai Land Department Source: Dubai Land Department

Market Watch Annual Report 2023 19

MARKET
DUBAI

Performance
Existing / Ready Sales Transaction Volume - 2023

20.72 %
Total Existing / Ready Sales Transaction Volume - 2023
70,000
64,351
60,000
52,796 53,308
50,000
42,441
40,000 36,204
32,475
30,000 29,024
25,686 25,975
23,798
20,000 16,918 16,668 18,660

10,000
0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Source: Dubai Land Department

The existing sales witnessed a new record by reaching 64,351 transactions in 2023 compared to 53,308 in 2022,
to be the highest performance for a year ever recorded. The ready/existing transactions witnessed a
year-on-year increase of 20.72% compared to 2022.

In 2023, a total of 178 areas saw existing/ready transactions, with 51.2% of the total transactions being accounted
for by 10 areas. Leading the pack was Business Bay, which contributed to 7.7% of the total transactions, followed
by Marsa Dubai at 7.1%, and Al Barsha South Fourth with 7.1%. Interestingly, there was a significant increase in
demand out of the top areas, such as Madinat Al Mataar with around 151% as well as Wadi Al Safa 2 with around
435% and Wadi Al Safa 3 with 225%.

Looking at the top ten areas for the ready/existing market in terms of transaction volume, Al Barsha South Fourth
saw a notable increase of 63%, followed by Burj Khalifa with an increase of 55% and Al Hebiah Fourth with 52%.

Top 10 Areas for Existing / Ready 2023 vs 2022

Relative Distribution of Existing/Ready Transaction Volume 2023
Transactions by Area - 2023 Business Bay 29%
4.7%
Jabal Ali First 4.6% 48.8% Marsa Dubai 18%
Al Thanyah Fifth Rest of the Areas
4.8% Al Barsha South Fourth 63%
Burj Khalifa
3.7% Al Hebiah Fifth -32%
5.4% Al Warsan First
Al Hebiah Fifth
Burj Khalifa 55%
7.1% Jabal Ali First -13%
Marsa Dubai

7.1% Al Thanyah Fifth 22%

Al Barsha 58.7%
South Fourth Others Al Warsan First 31%
7.7% 2.8% 3.4% Al Hebiah Fourth 52%
Business Bay
Um Nahad Fourth Al Hebiah Fourth
Um Nahad Fourth N/A
Source: Dubai Land Department Source: Dubai Land Department

Market Watch Annual Report 2023 20

MARKET
DUBAI

Performance
Total Sales Transaction Value - 2023
In 2023, sales transactions recorded the highest value ever for a year by reaching AED 411.74 Billion compared to
AED 264.34 Billion in 2022. The market value of sales transactions increased by 56% compared to 2022, forming a
new high for the total sales value. The strong economic growth and tourism industry have led to a steady demand for
housing, in addition to the instability of the global economy.

In 2023, real estate transactions took place in 178 areas. The top 10 areas accounted for 49.2% of the total
transactions, with Marsa Dubai leading at 9.8% of the total transaction value, followed by Palm Jumeirah at 7.5% and
Business Bay with over 5.6%. It's worth noting that there was a surge in demand for areas outside of the top ten. For
instance, Madinat Dubai Almelaheyah saw a nearly 673% increase in transaction value, recording AED 7.2 Billion
compared to AED 932 Million, while Wadi Al Safa 3 witnessed a 272% increase compared to 2022 and Me'Aisem First
with 154%.

Additionally, new communities entered the list with noteworthy

transactions, such as Al Yelayiss 5, which recorded transactions worth
AED 4.9 Billion, with all of them being ready properties.

Looking at the top ten areas in terms of transaction value, Al Barsha

South Fourth saw a notable increase, which recorded AED 16,59 Billion Off-plan Existing
compared to AED 5.7 Billion in 2022, followed by Al Thanyah Fifth with
an increase of 112%, and Al Khairan First with a 69% increase compared 39%% 61%%
to 2022.

Total Sales Transaction Value - 2023 56%

450.00 411.74
400.00
350.00
AED in Billion

300.00 264.34

250.00
200.00
149.20
150.00 146.96 140.87
120.32 109.83 116.40
100.00 73.50 75.03 76.70 70.14
58.23
50.00

0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Source: Dubai Land Department

Top 10 Areas in Terms of 2023 Vs 2022

Relative Distribution of Total Transaction Total Value of Transactions
Value by Area - 2023 Marsa Dubai 62%
4.1%
Hadaeq Sheikh 3.8% Palm Jumeirah 19%
Al Barsha
Mohammed Bin 50.8%
Rashid South Fourth
Rest of the Areas Business Bay 40%
4.4%
Al Merkadh
3.0%
Burj Khalifa 22%
4.7% Al Thanyah
Al Merkadh 35%
Burj Khalifa Fifth

5.6% Hadaeq Sheikh Mohammed Bin Rashid 23%

Business Bay
Al Barsha South Fourth 191%
7.5%
Palm Jumeirah
60.1% Palm Jabal Ali N/A
Others
9.8% Al Khairan First 69%
Marsa Dubai 3.1% 3.2%
Al Khairan First Palm Jabal Ali Al Thanyah Fifth 112%
Source: Dubai Land Department Source: Dubai Land Department

Market Watch Annual Report 2023 21

MARKET
DUBAI

Performance
Off-plan Sales Transaction Value - 2023

Total Off-plan Sales Transaction Value - 2023 72.3%

180,000 160,460

140,000
AED in Billion

93,125
100,000

60,000 44,263
26,430 31,639 30,224
22,794 23,954 22,896 20,152 20,769
20,000
6,953
3,546
0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Source: Dubai Land Department

Off-plan sales created a notable record by reaching a

value worth AED 160.46 Billion in 2023 compared to Relative Distribution of Off-plan
AED 93 Billion in 2022, registering around a 72.3% Transaction Value by Area - 2023
increase. The off-plan transactions contributed to 4.9%
4.9%
Hadaeq Sheikh 34.1%
39% of the total transaction value, witnessing the Mohammed Bin Burj Khalifa Rest of the Areas
highest value ever recorded in the off-plan market.
Rashid
5.4%
Al Barsha South 3.3%
Fourth
In 2023, a total of 54 areas saw off-plan transactions, 7.1%
Wadi Al Safa 5

with 65.87% of the total transaction value being Business Bay

accounted for by 10 areas. Leading the pack was 7.4%

Marsa Dubai, which contributed to 16% of the total
Al Merkadh

46.0%
transaction value, followed by Palm Jumeirah at 8.3%
Palm Jumeirah Others
8.32% and Al Merkadh with over 7.34%. 16.1%
Marsa Dubai
3.6% 4.8%
Al Wasl Al Khairan First
Interestingly, there was a significant increase in
demand outside of the top areas, such as Al Thanyah Source: Dubai Land Department

Fifth which saw transactions worth AED 4.3 Billion

compared to AED 532 Million in 2022, as well as
Madinat Dubai Almelaheyah that recorded
transactions worth AED 4.27 Billion compared to AED Top 10 Areas in Terms of
2023 Vs 2022
Total Value of Off-plan Transactions
541 Million for the same period in 2022.
Marsa Dubai 122%
Looking at the transaction value in the top ten areas in Palm Jumeirah 13%
the off-plan market, Al Barsha South Fourth Al Merkadh 80%
witnessed a surge by recording AED 8.9 Billion in
2023 compared to AED 2.2 Billion in 2022, followed Business Bay 17%
by Hadaeq Sheikh Mohammed Bin Rashid at 158% Al Barsha South Fourth 301%
increase and Marsa Dubai at 122% compared to 2022. Hadaeq Sheikh Mohammed Bin Rashid 158%
Burj Khalifa -15%
Al Khairan First 37%
Al Wasl 4%
Wadi Al Safa 5 57%
Source: Dubai Land Department

Market Watch Annual Report 2023 22

MARKET
DUBAI

Performance

Existing/Ready Sales Transaction Value - 2023

Top 10 Areas in Terms of Total 2023 Vs 2022

Relative Distribution of the Existing/Ready Value of Existing / Ready Transactions
Transaction Value by Area - 2023 Palm Jumeirah 24%
4.3% 3.6%
Al Hebiah Fifth Hadaeq Sheikh 54.5% Marsa Dubai 14%
Mohammed Bin Rashid
Rest of the Areas
4.6% Palm Jabal Ali N/A
Burj Khalifa

4.7% 3.3% Business Bay 68%

Business Bay
Wadi Al Safa 3
Burj Khalifa 69%
5.2%
Palm Jabal Ali Al Hebiah Fifth -15%

6.1% Hadaeq Sheikh Mohammed Bin Rashid -14%

Marsa Dubai 64.5%
Others Al Hebiah Fourth 40%
7% 3.3% Wadi Al Safa 3 472%
Palm Jumeirah 3.3%
Al Thanyah Fifth
Al Hebiah Fourth
Al Thanyah Fifth 57%
Source: Dubai Land Department Source: Dubai Land Department

The existing/ready sales value hit a record high of AED 251.3 Billion compared to AED 171.2 Billion in 2022,
marking a remarkable increase of 46.76%, to register the highest transaction value ever in a year.

In 2023, a total of 178 areas saw existing/ready transactions, with 55.5% of the total transaction value being
accounted for by just 10 areas. Leading the pack was Palm Jumeirah, which contributed to 7% of the total
transaction value, followed by Marsa Dubai at 6.1%.

Interestingly, there was a significant increase in demand outside of the top areas, such as Al Yelayiss 5, which
recorded transactions worth AED 4.85 Billion, as well as Mugatrah that recorded transactions worth
AED 3.87 Billion.

Looking at the top ten areas for the existing/ready market in terms of transaction value, Wadi Al Safa 3 had a
remarkable increase from AED 1.6 Billion in 2022 to AED 9.14 Billion followed by Burj Khalifa, which saw an
increase of 69%, followed by Business Bay with an increase of 68%.

Existing / Ready Sales Transaction Value - 2023 46.8%

300,000
251,282
250,000
AED in Billion

200,000 171,219

150,000
124,162 116,915 104,937
97,421
100,000 83,403 84,764
54,681 66,546
54,875 49,375
50,000 46,472

0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Source: Dubai Land Department

Market Watch Annual Report 2023 23

MARKET
DUBAI

Performance
Total Rental Contracts - 2023

Dubai has a relatively stable rental market compared to global markets. In 2023, the rental contracts witnessed a
year-on-year increase of 4.17% by registering 789,015 contracts compared to 757,423 contracts in 2022.
According to Dubai Land Department’s data, in 2023, around 47.9% of the total rental contracts were new
contracts, while 52.1% were renewals. Annual contracts contributed to 91.72% of total contracts compared to
84.85% in 2022 while non-annual contracts shrunk by 6.87% to represent just 8.28% of the total contracts.
Residential contracts represented around 68.33% of the total rental contracts, while 30.47% were registered for
commercial purposes and others.

Looking at the top ten areas in terms of contract volume, Hor Al Anz saw a notable increase of 181%, followed by
Al Marrar with an increase of 45.6% and Naif with a 18.3% increase.

4.17%
Total Rental Contracts - 2023
800.0 789.0
757.4
700.0 651.8
600.0 540.0
,000 Contract

502.0 524.4
500.0 471.8
421.2 440.6
400.0 397.4
354.0
300.0 245.9
200.0

100.0

0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Source: Dubai Land Department

Top 10 Areas for Total

Relative Distribution of Total Rental Rental Contracts 2023 Vs 2022
Contracts by Area - 2023 Al Warsan First 8.5%
2.6% Jabal Ali First 9.8%
2.7% Marsa Dubai 72.6%
Rest of the Areas
Naif
Business Bay 11.0%
2.7% Al Mararr 45.6%
Al Barsha
South Fourth 2.2%
2.9% Hor Al Al Barsha South Fourth 14.3%
Anz
Al Mararr
Naif 18.3%
2.9%
Business Bay
Marsa Dubai 6.2%
3.3% 79.5%
Jabal Ali First Others Nadd Hessa 4.4%
2.2% 2.4%
3.4% Nadd Hessa
Al Karama -0.3%
Al Warsan First Al Karama
Hor Al Anz 180.9%
Source: Dubai Land Department Source: Dubai Land Department

Market Watch Annual Report 2023 24

MARKET
DUBAI

Performance
New Rental Contracts - 2023

In 2023, new contracts witnessed a slight decrease of 1.6% by registering 377,604 transactions compared to
383,777 contracts in 2022. A total of 205 areas saw new rental contracts, with 31.4% of the total new contracts
being accounted for by just ten areas. Leading the pack was Al Mararr, which contributed to 4.41% of the total new
contracts, followed by Hor Al Anz at 3.8%.

Interestingly, there was a significant increase in demand for places outside of the top 10 areas, such as Al Baraha
which saw an almost 197.4% increase in transactions, as well as Abu Hail with around 303% and Saih Shuaib 2
with around 190%.

Looking at the top ten areas in terms of volume of new contracts, Hor Al Anz saw a notable increase of 304%
compared to 2022, followed by Al Mararr with an increase of 57.5%, and Al Muteena with a 53.3% increase
compared to 2022.

-1.6%
Total New Contracts - 2023
400.0 383.8 377.6
360.8
350.0

300.0 263.2
,000 Contract

251.8 250.4
250.0 221.7 241.6
210.3 214.3
200.0 189.4 176.5
150.0

100.0

50.0

0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Source: Dubai Land Department

Top 10 Areas for Volume of

Relative Distribution of New New Contracts 2023 Vs 2022
Contracts by Area - 2023 Al Mararr 57.5%
2.7%
Marsa Dubai
68.6% Hor Al Anz 304.4%
3.0% Rest of the Areas
Naif Al Warsan First 7.6%
3.2%
Al Barsha Business Bay 0.9%
South Fourth 2.4%
3.3%
Port
Saeed Al Barsha South Fourth -8.2%
Business Bay
Naif 13.1%
3.4%
Al Warsan First
76.2% Marsa Dubai -0.9%
Others
3.8% Jabal Ali First -4.8%
Hor Al Anz 2.5% 2.7%
4.4%
Al Muteena Jabal Ali Al Muteena 53.3%
First
Al Mararr
Port Saeed 9.4%
Source: Dubai Land Department Source: Dubai Land Department

Market Watch Annual Report 2023 25

MARKET
DUBAI

Performance
Renewed Contracts - 2023

In 2023, renewed contracts supported the rental market by registering

411,411 transactions, witnessing an increase of 10.1% compared to
373,646 contracts in 2022.

204 areas saw renewed contracts in 2023, with 28.1% of the total
renewed contracts being accounted for by just ten areas. Leading the
pack was Jabal Ali First, which contributed to 3.9% of the total renewed
contracts, followed by Al Warsan First at 3.4%.

Interestingly, there was a significant increase in demand for places

outside of the top ten areas, such as Al Barsha South Third which saw
an almost 95% increase, as well as Mankhool with around 35.5%.

Looking at the top ten areas in terms of volume of renewed contracts, Al Barsha South Fourth saw a notable
increase of 60.4%, followed by Nadd Hessa with an increase of 27.14% and Al Barsha First with
a 25.58% increase.
.

Total Renewed Contracts - 2023

10.1%

500.0
411.4
400.0 373.6
,000 Contract

300.0 274.0 276.8 291.0

264.1 257.5 260.4
231.9
200.0 175.7
102.2
100.0
35.6
0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Source: Dubai Land Department

Top 10 Areas for Volume of 2023 Vs 2022

Relative Distribution of Renewed Renewed Contracts
Contracts by Area - 2023 Jabal Ali First 21%
2.6% Al Warsan First 9%
Business Bay 79.2% 71.9%
Others Rest of the Areas
Nadd Hessa 27%
2.6%
Al Nahda Second 2.3% Al Karama 16%
Al Barsha
2.6% South Fourth
Al Barsha First 26%
Al Barsha First
Al Nahda Second 25%
2.8%
Al Karama
2.4% Business Bay 25%
Naif
2.9% Marsa Dubai
Nadd Hessa 14%
2.5% Naif 24%
Marsa Dubai
3.4% 3.9%
Al Warsan First Jabal Ali First Al Barsha South Fourth 60%
Source: Dubai Land Department Source: Dubai Land Department

Market Watch Annual Report 2023 26

DUBAI

Dubai Market Trends - 2023

In this part, we are going to identify the top 5 demanded areas according to Property Finder’s most searched
areas. The top areas are determined as per the listings in our search engine, classified by residential apartments
and villas/townhouses for sale or rent purposes, along with the price movement for each location.

The Return On Capital Gains (ROCG) is calculated by comparing the average sales asking price of a property in
2022 to its current value in 2023.

The Return on Investment (ROI) is calculated by dividing the annual return on a rental property by the total
investment on the property in 2023.

Market Watch Annual Report 2023 27

TOP AREAS
DUBAI

FOR SALE IN 2023

Apartments Villas

1. Dubai Marina 1. Dubai Hills Estate

2. Downtown Dubai 2. Palm Jumeirah
3. Jumeirah Village Circle (JVC) 3. Arabian Ranches
4. Business Bay 4. DAMAC Hills
5. Palm Jumeirah 5. Mohammed Bin Rashid City

Palm
Jumeirah

Dubai
Marina

Market Watch Annual Report 2023 28

Mohammed
Bin Rashid City

Market Watch Annual Report 2023 29

DUBAI

Sales Market Trends for

Apartments - 2023

Based on proprietary data from Property Finder, the

average asking price for apartments in 2023 surged by
37% compared to 2022. Driven by the price increase of One 2022 2023 ROCG
three and four-bedroom apartments, with the Bedroom Average Price Average Price

three-bedroom average price witnessing a 50% surge Dubai Marina 1,300,000 1,450,000 11.54%
compared to 2022, and four-bedroom apartments
Downtown Dubai 1,750,000 1,900,000 8.57%
witnessing a significant increase of 56%.
Jumeirah Village Circle 705,000 850,000 20.57%
The data shows that in the most demanded areas, Business Bay 1,170,000 1,550,000 32.48%
one-bedroom apartments' average sales price increased
from AED 1.6 Million to AED 2 Million, while two-bedroom Palm Jumeirah 2,500,000 2,900,000 16.00%

apartments' prices rose from AED 2.6 Million to AED 3.7

Million. Moreover, the three-bedroom apartments' sales Two 2022 2023
asking price significantly increased from AED 4.4 Million Bedrooms Average Price Average Price
ROCG

to AED 6.6 Million. Dubai Marina 2,100,000 2,400,000 14.29%

The average asking price varied from location to location. Downtown Dubai 3,700,000 4,100,000 9.69%

Palm Jumeirah experienced the highest average price for Jumeirah Village Circle 1,100,000 1,500,000 36.36%
one, two and three-bedroom apartments. The surge in
1,950,000 2,500,000 28.21%
average prices led to a 16%, 48% and 56% Return on
Business Bay

Capital Gains (ROCG) respectively compared to the 2022 Palm Jumeirah 3,350,000 4,950,000 47.76%
average asking price.

Business Bay and Jumeirah Village Circle also observed a Three

Bedrooms
2022
Average Price
2023
Average Price ROCG
notable increase in 2023 compared to 2022. The one and
two-bedroom apartments in Business Bay witnessed an Dubai Marina 3,349,000 3,800,000 13.47%

increase of 32% and 28% respectively. Additionally, the Downtown Dubai 5,600,000 6,000,000 7.14%
prices of one-bedroom apartments in JVC grew by 21%,
Jumeirah Village Circle 1,533,314 2,031,000 32.46%
while two and three-bedroom apartments recorded a 36%
and 32% increase, respectively. Business Bay 2,895,000 3,600,000 24.35%

Palm Jumeirah 4,500,000 7,000,000 55.56%

Market Watch Annual Report 2023 30

DUBAI

Sales Market Trends for

Villas - 2023

In 2023, there was a significant increase of 26% in the Three 2022 2023 ROCG
average asking price for villas compared to 2022. The Bedrooms Average Price Average Price

data of the most demanded areas indicate that the Dubai Hills Estate 4,200,000 5,600,000 33.3%

average sales price of three-bedroom villas rose from Palm Jumeirah 11,194,470 13,603,000 7.6%
AED 5.2 Million to AED 6 Million, while four-bedroom
villas saw an increase from AED 9 Million to AED 11.4 Arabian Ranches 3,000,000 3,775,000 25.8%

Million. The asking sales price for five-bedroom villas DAMAC Hills 2,650,000 2,900,000 9.4%
surged from AED 15 Million to AED 17.8 Million. Mohammed Bin
3,200,000 3,400,000 0.3%
Rashid City

The average price of villas varied depending on the

location. Palm Jumeirah witnessed the highest increase Four 2022 2023 ROCG
Bedrooms Average Price Average Price
in the average price for four-bedroom villas, recording a
41% increase in Return-on-Capital-Gains (ROCG). Dubai Hills Estate 4,900,000 6,100,000 24.5%

However, the surge in the average price was not Palm Jumeirah 18,500,000 30,000,000 62.2%
exclusive to Palm Jumeirah, as Dubai Hills Estate Arabian Ranches 4,850,000 6,500,000 34.0%
recorded a significant ROCG increase of 38% for
five-bedroom villas. Additionally, Arabian Ranches DAMAC Hills 3,810,769 4,036,000 5.9%

witnessed a significant increase in the average asking Mohammed Bin

Rashid City
N/A N/A N/A
price of four-bedroom villas by 34% (ROCG) and
five-bedroom villas by 29%.
Five 2022 2023
Bedrooms Average Price Average Price ROCG

Dubai Hills Estate 6,900,000 9,575,000 38.8%

Palm Jumeirah 25,949,500 36,450,000 40.5%

Arabian Ranches 6,950,000 8,950,000 28.8%

DAMAC Hills 6,000,000 7,150,000 19.2%

Mohammed Bin
Rashid City 19,000,000 21,000,000 10.5%

Market Watch Annual Report 2023 31

DUBAI

1. Dubai Marina 1. Dubai Hills Estate

2. Jumairah Village Circle (JVC) 2. Damac Hills 2
3. Downtown Dubai 3. Al Barsha
4. Business Bay 4. Jumeirah
5. Jumairah Lake Towers (JLT) 5. Damac Hills

Market Watch Annual Report 2023 32

Market Watch Annual Report 2023 33
DUBAI

Rental Market Trends

for Apartments - 2023

Property Finder’s proprietary data revealed that Dubai One

Bedroom
2022
Average Price
2023
Average Price
ROI

Marina, Jumeirah Village Circle (JVC), Downtown Dubai Marina 90,000 110,000 7.59%
Dubai, Business Bay and Jumeirah Lake Towers (JLT)
remained the preferred choices for apartments for Jumeirah Village Circle 54,000 68,750 8.09%

renters in 2023. Downtown Dubai 114,999 130,000 6.84%

80,000 95,000 6.13%

According to Property Finder asking price data, rents in
Business Bay

Dubai Increased significantly in 2023 compared to Jumeirah Lake Towers 68,000 80,000 6.40%

2022. On average, rents increased by 15%. The increase

was more significant for studio, one, two and Two 2022 2023
three-bedroom apartments with an increase of 19%, Bedrooms Average Price Average Price
ROI

11%, 19% and 11.3% respectively. The most searched Dubai Marina 140,000 160,000 6.67%
area, Business Bay, witnessed the highest average
75,000 95,000 6.33%
increase in rent price for three-bedroom apartments,
Jumeirah Village Circle

with a 29% increase, followed by Jumeirah Village Downtown Dubai 220,000 255,000 6.14%

Circle (JVC) that saw a 27% increase for one and Business Bay 130,000 145,000 5.80%
two-bedroom apartments.
Jumeirah Lake Towers 95,000 115,000 6.05%

JVC, one of the most searched areas, witnessed the Three 2022 2023
highest ROI for one and three-bedroom apartments Bedrooms Average Price Average Price ROI

with 8% and 6.8% respectively; while Dubai Marina had Dubai Marina 209,999 250,000 6.58%
the highest rental yields (ROI) for two-bedroom Jumeirah Village Circle 110,000 138,000 6.79%
apartments with 6.7%.
Downtown Dubai 320,000 360,000 6.00%

Business Bay 170,000 220,000 6.11%

Jumeirah Lake Towers 135,000 160,000 5.00%

Market Watch Annual Report 2023 34

DUBAI

Rental Market Trends

for Villas - 2023

Property Finder's proprietary data revealed that in Three

Bedrooms
2022
Average Price
2023
Average Price
ROI

2023, Dubai Hills Estate, Damac Hills 2, Al Barsha, Dubai Hills Estate 290,000 330,000 5.89%
Jumeirah and Damac Hills emerged as the top
choices among renters searching for villas. However, Damac Hills 2 65,000 85,000 6.25%

renters had to pay a higher price than in the previous Al Barsha 227,088 306,000 9.61%
year, as average rental prices for villas in Dubai
200,000 270,000 2.73%
increased by around 19% compared to 2022,
Jumeirah

according to Property Finder's asking price data. The Damac Hills 170,000 210,000 7.24%

average rental price for a three-bedroom villa rose by

30%, while four-bedroom villas experienced a 28% Four 2022 2023
hike and five-bedroom villas saw an increase of 14%. Bedrooms Average Price Average Price
ROI

Dubai Hills Estate 330,000 342,000 5.70%

Al Barsha was the most profitable area in 2023 for
74,993 103,000 5.72%
renting a three and four-bedroom villa, with the
Damac Hills 2

highest Return On Investment (ROI) of 9.6% and 7% Al Barsha 230,000 350,000 7.00%

respectively. Damac Hills witnessed a 9.2% and Jumeirah 320,000 400,000 2.67%
7.2% hike for four and three bedroom villas
respectively. Damac Hills 250,000 322,500 9.21%

Damac Hills 2 also topped the list for rental yields Five 2022 2023
ROI
(ROI) in the most sought-after areas of Dubai for Bedrooms Average Price Average Price

three-bedroom villas with 6.3%, while four-bedroom Dubai Hills Estate 399,000 488,000 3.55%
and five-bedroom villas recorded a 5.7% and 4.86% Damac Hills 2 100,000 130,000 4.81%
yield respectively. Therefore, for those who can afford
it, investing in the rental property market in Dubai's Al Barsha 300,000 400,000 4.34%

most popular areas could lead to significant returns. Jumeirah 350,000 450,000 2.21%

Damac Hills 380,000 420,000 5.87%

Market Watch Annual Report 2023 35

The Offical Real Estate
Indices For the Emirates
of Dubai
Mo'asher - 2023

Market Watch Annual Report 2023 36

MO'ASHER

MO'ASHER
- 2023

The Official Sales Price Index - 2023

In 2023, the overall annual Index for sales recorded 1.599 and an Index price of AED 1,492,495. While the
apartments' annual sales Index recorded 1.685 and an Index price of AED 1,437,213, the villas/townhouses' annual
sales Index recorded 1.473 and an Index price of AED 2,447,256.

The Index showed growth in all categories. Year on Year (YoY), from 2022 to 2023, the overall Index surged from
1.381 to 1.599, indicating a 15.79% increase. The apartment segment displayed the most significant YoY growth,
jumping from 1.398 to 1.685, indicating a 20.53% increase. Villas experienced a growth from 1.305 to 1.473. While
the apartment segment dominated in YoY growth, the villa category showed a more rapid QoQ appreciation. On the
other hand, Q4 2023 reflected a continued positive trajectory in the real estate market, with both yearly and
quarterly analyses emphasizing sustained demand and robust performance, especially within the apartment sector.

1.8

1.6

1.4

1.2

1
Q1-2012
Q2-2012
Q3-2012
Q4-2012
Q1-2013
Q2-2013
Q3-2013
Q4-2013
Q1-2014
Q2-2014
Q3-2014
Q4-2014
Q1-2015
Q2-2015
Q3-2015
Q4-2015
Q1-2016
Q2-2016
Q3-2016
Q4-2016
Q1-2017
Q2-2017
Q3-2017
Q4-2017
Q1-2018
Q2-2018
Q3-2018
Q4-2018
Q1-2019
Q2-2019
Q3-2019
Q4-2019
Q1-2020
Q2-2020
Q3-2020
Q4-2020
Q1-2021
Q2-2021
Q3-2021
Q4-2021
Q1-2022
Q2-2022
Q3-2022
Q4-2022
Q1-2023
Q2-2023
Q3-2023
Q4-2023

Overall Apartments Villas

Sales Price Index Overall Index Apartments Villas

Q-on-Q 2.79% 3.39% 6.92%

6M change 5.12% 7.16% 13.43%

9M change 7.91% 11.57% 17.66%

Y-on-Y 9.22% 15.73% 19.29%

Market Watch Annual Report 2023 37

MO'ASHER

MO'ASHER
- 2023

The Official Rental Performance

Index - 2023

The overall annual Index for rental in 2023 recorded 1.033 and an Index price of AED 58,431. The apartments
quarterly rental Index recorded 1.028 and an Index price of AED 53,197, and the villas/townhouses quarterly rental
Index recorded 1.059 and an Index price of AED 153,266.

The Index showed growth in all categories. Year on Year (YoY), from 2022 to 2023, the overall Index surged from
0.94 to 1.033, indicating a 9.89% increase. The villa category displayed the most significant YoY growth, jumping
from 0.961 to 1.059, indicating a 10% increase.

1.6

1.4

1.2

0.8
Q1-2012
Q2-2012
Q3-2012
Q4-2012
Q1-2013
Q2-2013
Q3-2013
Q4-2013
Q1-2014
Q2-2014
Q3-2014
Q4-2014
Q1-2015
Q2-2015
Q3-2015
Q4-2015
Q1-2016
Q2-2016
Q3-2016
Q4-2016
Q1-2017
Q2-2017
Q3-2017
Q4-2017
Q1-2018
Q2-2018
Q3-2018
Q4-2018
Q1-2019
Q2-2019
Q3-2019
Q4-2019
Q1-2020
Q2-2020
Q3-2020
Q4-2020
Q1-2021
Q2-2021
Q3-2021
Q4-2021
Q1-2022
Q2-2022
Q3-2022
Q4-2022
Q1-2023
Q2-2023
Q3-2023
Q4-2023 Overall Apartments Villas

Rental Performance Apartments

Index Overall Index Villas

Q-on-Q 2.41% 2.90% 2.99%

6M change 5.14% 5.77% 5.83%

9M change 7.59% 7.98% 6.97%

Y-on-Y 9.62% 9.86% 8.48%

Market Watch Annual Report 2023 38

DISCLAIMER

The information in Property Finder Market Watch is intended for general use only.

Property Finder has made every effort to ensure the accuracy of the information; we will not be held
responsible for any errors in the document. If you wish to use or copy any of the text or other materials in
this report, you must contact Property Finder for copyright permission concerning the proposed use.

Data is always evolving, and at Property Finder, we are constantly researching and launching tools to help,
support and inform end-users in their house-hunting journey. Property Finder is continuing to work on
improvements to its data tools, and there will be updates in the price analysis section in every upcoming
issue of the Market Watch reports. However, it is vital to bear in mind that the prices quoted in the issue
are both asking prices (as listed on our websites) and transaction prices (actual transaction price). We try
to present the most accurate property prices, but these do not indicate the current market rates and
should not be used for commercial purposes, including pricing, investment decision making or
performance measurement.

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50954, Dubai, UAE.

Christophe de Rassenfosse Fouad Bekkar

Chief Product Officer VP Data & AI
[email protected] [email protected]

Aasem Abou Elezz Noha Zeid

Data & Market Insights Manager VP of Marketing
[email protected] [email protected]

Market Watch | Abu Dhabi | Dubai