Robust economic growth drives a significant increase in real estate transactions
The Dubai real estate market is experiencing a remarkable surge, with property transactions reaching a staggering value of $9.3 billion in May. This represents an 87% increase compared to the same period in 2022. The market also witnessed a substantial rise in the volume of transactions, with 11,700 deals recorded—an impressive 78% year-on-year growth. These statistics, as reported by Property Finder, reflect the thriving state of Dubai’s real estate sector and its resilience in the face of a dynamic property landscape.
One of the key drivers behind the market’s growth is the surge in off-plan deals, which accounted for 49% of the total sales volume and 43% of the value in May. Off-plan property sales soared by over 110% compared to the previous year, with more than 5,700 transactions recorded. The value of off-plan properties also experienced a substantial increase, surging by almost 136% to over Dh14.5 billion. These figures surpass the Dh6.15 billion recorded in April 2022.
Scott Bond, the UAE country manager at Property Finder, emphasized the market’s impressive performance, stating, “May 2023 has yet again established the fact that Dubai’s real estate sector continues to thrive amid a largely dynamic property landscape.” The significant rise in off-plan transactions suggests a future that knows no slowdown, with remarkable growth observed from April onwards.
Dubai’s thriving real estate market can be attributed to the city’s robust economic growth. In the first nine months of 2022, Dubai’s economy expanded by 4.6% year on year. Furthermore, Emirates NBD estimates the city’s full-year growth for 2022 at 5%, with expectations of a 3.5% expansion this year. S&P Global Ratings also projects a 3% growth rate for Dubai’s economy in 2023, predicting sustained momentum in the coming years.
The recovery of the UAE property market from the pandemic-induced slowdown has been remarkable. Supported by government initiatives, higher oil prices, and measures to bolster the economy, the market has maintained strong growth momentum throughout the year. Dubai and Abu Dhabi experienced a surge in property transactions last year, with the value of deals reaching a record high of Dh528 billion. This represented a 76.5% annual increase in value and a 44.7% rise in the number of transactions.
In May, the Dubai property market followed an upward trend, with a 53% increase in the value of deals and a 45% rise in transaction volume compared to April. The market has consistently exhibited growth in both value and volume throughout the year, with June poised to maintain this momentum.
Notable developments in areas such as Palm Jumeirah, Burj Khalifa, Dubai Hills, Wadi Al Safa 3, Business Bay, Dubai Marina’s Marsa Dubai, Madinat Al Mataar, Jumeirah Village Circle, Al Hebiah Fifth, and Emirate Living contributed to over 45% of the total sales value and 39% of the total transactions.
According to Property Finder’s data, the most searched areas for apartments in May included Dubai Marina, Downtown Dubai, Business Bay, Palm Jumeirah, and Jumeirah Village Circle. For those interested in owning villas and townhouses, Dubai Hills Estate, Palm Jumeirah, Arabian Ranches, and Damac Hills were the preferred choices.
Buyers showed a preference for apartments, with over 58.1% seeking this type of property, while the remainder expressed interest in villas and townhouses
