The month of June witnessed an exceptional performance by Dubai’s real estate market, defying expectations of a mid-year slowdown and experiencing a remarkable surge in both volume and value.
Dubai’s property market continues to demonstrate its resilience and growth, with a staggering 10,419 real estate transactions recorded in June. This marks a remarkable 17.78 percent increase compared to the same period last year, surpassing the figures of 8,846 transactions in June 2022, as reported by renowned real estate portal Property Finder.
The value of these transactions also experienced an impressive surge of 34.1 percent, reaching a substantial total of Dhs30.41 billion. These figures represent the highest transaction volume and value witnessed in the month of June over the past decade.
Dubai’s real estate landscape exhibits interesting buying trends, with ten prominent areas contributing to nearly 68 percent of the total sales value and 54 percent of the overall number of transactions in the off-plan market. These areas include Dubai Marina, Palm Jumeirah, Dubai Harbour, Dubai Creek Harbour, Dubai Hills, Burj Khalifa, Jumeirah Lakes Towers, Jumeirah Village Circle, Umm Suqeim Third, and Dubai Design District.
Buyers focused their attention on specific areas when looking to purchase apartments, with Dubai Marina, Downtown Dubai, Business Bay, Jumeirah Village Circle, and Palm Jumeirah emerging as the top choices. For those interested in owning villas or townhouses, Dubai Hills Estate, Palm Jumeirah, Arabian Ranches, DAMAC Hills, and Al Furjan stood out as the most sought-after locations.
Property Finder’s data reveals that 57.5 percent of property buyers were inclined towards apartments, while 42.5 percent showed interest in villas or townhouses. Among apartment buyers, the most commonly searched size was two-bedroom units, accounting for 34.1 percent, closely followed by one-bedroom apartments at 33.4 percent.
Scott Bond, UAE country manager at Property Finder, expressed his observations, stating, “In June 2023, Dubai’s booming property sector once again marked a record rise in both volume and value. With off-plan transactions continuing to surge, the existing properties market reported a slight dip in volume, offset by an increase in value. While overall trends mostly remained the same, we have witnessed variations in home seeker preferences in the off-plan as well as the existing properties segment. It will be interesting to see how the dynamic evolves during the upcoming summer months.”
The off-plan segment played a pivotal role in driving the market’s growth, accounting for 49.6 percent of the total sales transactions and 41.5 percent of the total transaction value. Year-over-year, the volume of off-plan property sales witnessed a remarkable 46.6 percent increase, with over 5,165 transactions recorded in June 2023 compared to 3,523 in the same period last year. The value of off-plan properties skyrocketed by an astonishing 80.26 percent, surpassing Dhs12.6 billion and far exceeding the Dhs7.007 billion recorded in June 2022.
Shifting focus to the rental market, the majority of tenants, constituting 78.5 percent, sought apartments, while 21.5 percent were interested in villas or townhouses. Among those searching for apartments, 61.8 percent preferred furnished properties, while 34.2 percent were inclined towards unfurnished options. In the segment of tenants with the means to rent a villa or townhouse, 54.5 percent favored unfurnished units, while 42.1 percent preferred furnished alternatives.
In terms of apartment preferences, 35.1 percent of tenants sought one-bedroom units, while 31.1 percent expressed a preference for two-bedroom apartments, and 22 percent were searching for studios. Among tenants seeking villas or townhouses, three-bedroom units emerged as the most popular, capturing 43.4 percent of tenant interest, while 36.1 percent were in search of four-bedroom or larger options.
The remarkable surge in Dubai’s real estate market during June highlights the resilience and attractiveness of the emirate’s property sector. Despite seasonal expectations, the market has experienced unprecedented growth in both sales and rental sectors, showcasing the continued trust and confidence of investors and residents alike. With the off-plan market spearheading this surge, the upcoming summer months promise to bring further excitement and development to Dubai’s real estate landscape.
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