Dubai’s residential market surges with 5.6% growth in Q1 2023

Dubai’s residential market surges with 5.6% growth in Q1 2023

Dubai, United Arab Emirates: Dubai’s residential market continues to experience an impressive upward trend, with values increasing by 5.6% in Q1 2023. This marks the 9th consecutive quarter of growth, driven by strong demand for luxury second homes and the city's emergence as a global luxury hub.

Villas Outperform the Market

Experiencing an average growth of 5.1% between January and March, reaching AED 1,450 psf. In contrast, apartment prices increased by 5.7% to approximately AED 1,230 psf during Q1.

Faisal Durrani, Partner - Head of Middle East Research, explains, “Despite this strong rate of increases, prices still lag the 2014 peak by 15%. Apartments have been slower to recover and still trail the last market peak 7-years ago by 18%. Villas on the other hand have equalled their 2014 peak and remain highly sought, particularly in the upper echelons of the market, with prices now 15% higher than Q1 2022, with even more significant growth in prime neighbourhoods.”

Strong Growth in More Affordable Locations:

Dubai Hills Estate and Emirates Hills, for instance have experienced sharp increases in prices as domestic buyer demand for larger homes fuels demand, particularly in more affordable inland communities. Dubai Hills Estate saw a 23% increase in apartment prices in the