Dubai Real Estate Market: Affordable Communities Thrive in H2 2023

The second half (H2) of 2023 proved to be a significant period for Dubai’s real estate market, with a notable shift towards more affordable communities. According to recent findings from a property developer, areas like Mira and Mudon have seen a surge in transactions as buyers seek out value in comparison to the inflated prices of established areas like Palm Jumeirah and Dubai Hills.

John Lyons, managing director of Espace Real Estate, noted that the appeal of more affordable communities lies in the perceived value they offer, leading to a 49 percent increase in transactions in Mira compared to the previous year.

Overall, Dubai’s real estate market has shown robust performance, with total property sales transactions reaching AED178 billion in both off-plan and secondary markets – a 47 percent increase from the same period in 2022. The luxury segment has also remained strong, with a 40 percent rise in transactions in the AED 20+ million range.

However, the rental market tells a different story, with rental transaction volume declining in most communities due to elevated rental prices. Despite this, some communities like Jumeirah Golf Estates and Jumeirah Islands have seen significant jumps in rental prices.

Looking ahead to 2024, Lyons predicts an increase in the valuations of traditionally affordable communities as demand continues to grow. Lower prices in more expensive areas and improved mortgage rates are also expected to make buying property in Dubai more accessible.

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