According to Allsopp & Allsopp, the average sales price for real estate in Dubai increased by 52% from AED2,167,206 in August 2022 to AED3,291,555 in August 2023.
6 percent of the month’s total sales were made by German citizens.
UK citizens continued to dominate with 22% of the market, followed by Indians with 13% and Lebanon and Russia with 6% apiece.
Dubai market attracting global investors
Jumeirah Village Circle (JVC) residences were clearly preferred by German buyers, who accounted for 25% of all transactions in the neighborhood.
AED750,000 to AED1 million accounted for 32% of apartment sales in JVC, and AED2 to AED3 million transactions accounted for 27% of all transactions.
These preferences primarily correspond with German consumers’ shopping habits. The second-most popular area among German purchasers was Jumeirah Golf Estates, which accounted for 16% of all transactions there.
The fact that the majority of these deals happened on the secondary market shows that German buyers are still interested in Dubai’s real estate.
“We expect more activity in the Dubai real estate market in Q4 of 2023, as Germany and other nations seek opportunities in this diverse and dynamic market,” Lewis Allsopp, CEO of Allsopp & Allsopp, said highlighting Dubai’s appeal as an economic hub capable of drawing attention from countries like Germany, which is currently facing its most significant crisis in decades.
The research said that there has been a significant 27 percent decline in the issuing of apartment building licenses in the first half of 2023, which has led to insolvency declarations from numerous German real estate development companies.
Although local evaluations predict a decline of over 5% in property values during 2023 in Germany, with an outlook of stability in 2024, Allsopp & Allsopp noted that potential purchasers are hesitant because they believe the market to be pricey.