In a striking testament to its resilience and prosperity, the Dubai real estate market witnessed a staggering 43% year-on-year (YoY) growth in property transactions, amounting to a remarkable Dhs33.7 billion in value for August. This surge in demand reflects the robust economic growth that Dubai has been experiencing. Let’s delve into the details of this impressive feat and explore the key trends shaping Dubai’s thriving real estate sector.
Dubai’s Remarkable Real Estate Transaction Boom
During the month of August, Dubai recorded a total of 11,818 real estate transactions, marking a significant 25% increase in volume compared to the same period in 2022 when there were 9,450 transactions. This growth highlights the unwavering interest and confidence investors and homeowners continue to place in Dubai’s real estate market.
Property Preferences: Apartments vs. Villas
The property preferences in August closely mirrored those of July, with apartments remaining the top choice for both buyers and tenants. A remarkable 59% of property buyers were seeking apartments, while 41% expressed interest in villas or townhouses. Among tenants, 81% were looking for apartments, while 19% were in search of villas.
Popular Apartment Sizes
Two-bedroom apartments took the lead as the most sought-after property type for purchase in Dubai, accounting for 34% of searches, closely followed by one-bedroom apartments at 33%.
Off-Plan Properties: A Driving Force
The off-plan property segment played a pivotal role in driving the surge in Dubai’s real estate market during August. It accounted for a substantial 58% of total sales transactions and 50% of the total transaction value. Off-plan property sales volume witnessed an impressive YoY increase of 63%, with 6,837 transactions recorded compared to 4,189 in August 2022.
The value of off-plan properties surged by a staggering 103% to Dhs17 billion, surpassing the Dhs8.3 billion recorded during the same period the previous year.
Expert Insights
Cherif Sleiman, the Chief Revenue Officer at Property Finder, expressed his satisfaction with the market’s performance, stating, “In August 2023, Dubai’s property sector continued the steep YoY growth trajectory. We were pleased to see the sustained momentum in growing investor appetite, with the market remaining robust over the holiday months and the off-plan segment witnessing an unprecedented surge.”
Dubai’s Resilient Property Market
Dubai’s property market stands in stark contrast to many other global markets, where home values have faltered due to rising interest rates and economic uncertainties. In August, ten specific areas accounted for nearly 65.3% of the total sales value and 53% of the total number of transactions in the off-plan market. These areas include established favorites like Business Bay, Dubai Harbour, Dubai Creek Harbour, Jumeirah Lakes Towers, and Jumeirah Village Circle, as well as newcomers like Sobha Heartland, Al Yufrah 1, Arjan, Jumeirah Village Triangle, and Madinat Al Mataar.
The existing property segment also witnessed a substantial YoY increase in value, growing by approximately 11% to reach Dhs16.9 billion compared to Dhs15.3 billion the previous year. Prominent areas contributing to this growth include Palm Jumeirah, Burj Khalifa, Emirates Living, Dubai Marina, Al Hebiah Fifth, Palm Deira, Arjan, Jumeirah Village Circle, Business Bay, and Dubai Hills, collectively accounting for more than 40% of the sales value and 34% of the volume.
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