Dubai property market continues to flourish with massive increase in value and volume of real estate deals
Dubai saw $9.3bn (AED34.2bn) of property sales last month, according to data published by Property Finder.
The number of real estate deals climbed around 45 per cent year-on-year to more than 12,000 transactions compared to 8,344 in March 2022.
The value of transactions increased beyond 53% compared to the same month last year.
Dubai real estate 2023
In terms of value, the transactions for existing properties witnessed an increase of more than 34 per cent year-on-year, reaching over AED21.6bn compared to AED16.1bn in March 2022, recording the highest volume and value for the month of March in a decade.
Furthermore, the data revealed updated figures showing a significant evolution in property preferences for both owners and tenants.
According to Property Finder’s data for March 2023, 59.7 per cent of people who desire to own property are looking for an apartment, while 40.3 per cent are interested in villas/townhouses.
In March 2023, there was an increase in the percentage of investors or home seekers looking for apartments, rising from 57.2 per cent in March 2022 to 59.7 per cent.
Conversely, those searching for Villas/townhouses decreased by 2.5 per cent, dropping from 42.8 per cent to 40.3 per cent.
Among home seekers, the most commonly searched apartment size was two bedrooms, accounting for 34 per cent, followed by one-bedroom apartments at 32 per cent.
Additionally, in the rental segment, 79.8 per cent of tenants search for apartments and 20.2 per cent look for villas/townhouses.
Around 63.8 per cent of the tenants who are looking for apartments for a longer stay prefer furnished properties, while 34.4 per cent were searching for unfurnished apartments.
Unlike the tenants who can afford to rent a villa/townhouse, approximately 52.1 per cent were looking for unfurnished units, while 46.8 per cent were looking for furnished villas/townhouses.
Around 33.3 per cent of the tenants were looking for one-bedroom units in March 2023, followed by two-bedroom units, which presented 30.4 per cent of the tenants’ preferences, while 29.4 per cent were looking for Studios. For Villas/Townhouses, 42 per cent of tenants were primarily looking for three-bedroom units, while 35.5 per cent were searching for four-bedroom or larger options.
Off-plan transactions significantly supported Dubai’s real estate market uptrend in March, accounting for 52.8 per cent of the total sales transactions and 36.8 per cent of the total transaction value.
The volume of off-plan property sales also surged by 95 per cent year-on-year, with more than 6,400 transactions recorded, compared to 3,287 in March 2022.
Existing property transactions saw an annual increase of approximately 13 per cent in volume, with over 5,700 transactions recorded. The value of these transactions also experienced a surge of around 34 per cent year-on-year, reaching around AED21.6b, compared to AED 16.1bn in March 2022.
According to Property Finder’s proprietary data, the top searched areas in March 2023 for rented apartments continued to include:
- Dubai Marina
- Downtown Dubai
- Business Bay
- Palm Jumeirah
- Jumeirah Village Circle.
The most searched areas for people looking to own or rent villas and townhouses were:
- Dubai Hills Estate
- Palm Jumeirah
- Arabian Ranches
- Damac Hills
- Mohammed Bin Rashid City
For the off-plan market in March, Dubai Creek Harbour accounted for approximately 12 per cent of the total transaction value and 10 per cent of the total number of sales.
Following closely behind, Dubai Marina represented approximately 11.7 per cent of the sales value and only 3.7 per cent of the total sales.
On the other hand, Jumeirah Village Circle (JVC) ranked third, comprising around 18.4 per cent of the total sales in March, and only 7.7 per cent of the total transaction value.
The Dubai real estate market continues to maintain momentum in its sales transactions with March 2023’s accelerated market performance adding to February 2023’s record 9,000 sales transactions and sustained growth in market value.
Scott Bond, UAE Country Manager at Property Finder said: “March 2023 has recorded an interesting spike in both demand and value for the UAE’s thriving property sector.
“We have seen the emergence of new consumer preferences such as a growing incline towards ownership, with an equally sustained growth within the rental market.
“We continue to observe and deliver upon the nation’s fast-evolving property sector, with a positive outlook for the coming months. As a trusted go-to marketplace for homeseekers, we look forward to supporting this growth with our wide range of data-backed tools and features, designed to get people living the life they deserve.”
0 comments