Dubai’s real estate market started 2023 off strong, jumping more than 128.5% year over year to 9,800 sales transactions from 5,739 in the previous year.
A major regional real estate portal, Property Finder, has published data showing that the value of transactions increased by 178% to over Dh28 billion in the first month.
“In terms of value, the transactions for existing properties witnessed an increase of around 42 percent YoY, reaching over Dh16 billion compared to Dh11.4 billion in January 2022, recording the highest volume and value for the month in a decade,” said the portal.
Scott Bond, UAE country manager at Property Finder, said the new year has definitely been off to a great start, with continued momentum from last year and heightened resilience for Dubai’s property sector. “Led by a steady demand for housing and a rising inclination towards ownership, the coming months seem to behold a great spike in property investments. With evolving consumer preferences and record Y-o-Y success this January, we continue to behold a positive outlook for Dubai’s multi-faceted property sector, as a trusted go-to place marketplace for our customers.”
Data from the real estate consultancy company ValuStrat indicates that prices in the city’s core are expected to rise by an average of 7% to 10% by 2023. “However, competition from off-plan launches and higher mortgage interest rates are expected to put downward pressure on the secondary market. Residential rent rises are predicted to stabilize by end of 2023,” ValuStrat said.
“The fourth quarter of 2022 crowned a bumper year for Dubai’s real estate market. Record sales transactions, off-plan volumes surpassing ready homes, prime villa capital values exceeding 2014 peaks, and rents rising at the highest rate.
2022 was a momentous year in the Dubai real estate market – recording the highest volume & value of property sales ever,” the real estate consultancy said.
The data from Property Finder reveals a considerable development in both property owners’ and tenants’ preferences. According to the research, 59% of Dubai residents who want to own property are seeking apartments, while 41% are interested in villas or townhouses. In the rental market, 80% of tenants have opted for apartments, while 20% are considering villas or townhouses.
Sixty-six percent of renters are looking for furnished apartments, while only 34 percent are leaning toward unfurnished apartments in Dubai, where furnished flats only account for 46% of the market’s choices. One-bedroom homes account for about 41% of market demand, followed by two-bedroom units. According to the report, 54% of renters are looking for one-bedroom apartments, followed by 29% of renters looking for two-bedroom apartments.
Existing and off-plan trades had the best return in January 2023. By registering more than 4,800 transactions, the current (secondary/ready) transactions saw a volumetric increase of about 56% year over year.
Off-plan transactions had a fantastic performance, with over 5,000 transactions, a 90 percent YoY rise from 3,086 in January 2022, and a 130 percent increase in value at more than Dh12.1 billion, compared to Dh5.3 billion in the same period last year. According to the portal, this represented the biggest volume and dollar amount of off-plan sales for the month of January in the previous ten years.