Dubai property sector sees 11,700 transactions worth Dhs34bn in May

According to Property Finder’s proprietary data, the top searched areas for owned apartments in May included Dubai Marina, Downtown Dubai, Business Bay, Palm Jumeirah, and Jumeirah Village Circle

by Gulf Business

June 2, 2023

Image: Dubai Media Office

Property Finder has revealed key trends that dominated Dubai’s consistently flourishing property market in May.

According to latest data by the property portal, May saw 11,700 real estate transactions, recording a 78 per cent increase in volume compared to 6,587 in May 2022.

The value of sales transactions witnessed a rise of 87 per cent compared to the same month last year, reaching Dhs34bn. This reflects an incredible growth from April 2023, where 8,077 transactions were recorded with a value of Dhs26.5bn.

Key highlights for May

According to Property Finder’s data for May 2023, 58.1 per cent of people who desire to own property were looking for an apartment, while 41.9 per cent were interested in villas/townhouses.

In the rental segment, 77.7 per cent of tenants searched for apartments, and 22.3 per cent looked for villas/townhouses. Around 61.2 per cent of the tenants were seeking furnished apartments, while 37 per cent were searching for unfurnished apartments. Among the tenants who can afford to rent a villa/townhouse, approximately 56.6 per cent preferred unfurnished units, while 42.4 per cent were looking for furnished villas/townhouses.

Around 34.9 per cent of tenants were looking for one-bedroom units in May 2023, followed by two-bedroom units, which accounted for 31.4 per cent of the tenants’ preferences, while 21.78 per cent were searching for studios. For villas/townhouses, 43.5 per cent of tenants were primarily looking for three-bedroom units, while 35.5 per cent were searching for four-bedroom or larger options.

In May 2023, there was an increase in the percentage of investors or home seekers looking for apartments, rising from 53.9 per cent in May 2022 to 58.1 per cent.

Among home seekers, the most commonly searched apartment size was two bedrooms, accounting for 34.1 per cent, followed by one-bedroom apartments at 33.4 per cent.

Dubai real estate sector: Off-plan sales

Off-plan transactions significantly supported the emirate’s real estate market uptrend in May, accounting for 49 per cent of the total sales transaction volume and 43 per cent of the value. The volume of off-plan property sales surged by 110 per cent YoY, with over 5,700 transactions recorded, compared to 2,716 in May 2022.

This increase was reflected in the value of off-plan properties, which rose by almost 136 per cent to more than Dhs14.5bn, surpassing the Dhs6.15bn recorded in May 2022. It is noteworthy that out of all the areas, only 10 of them – Dubai Marina (Marsa Dubai), Dubai Harbour, Burj Khalifa, Palm Jumeirah, Jumeirah Village Circle (JVC), Wadi Al Safa 5, Business Bay, Dubai Water Canal, Dubai Creek Harbour, and Dubai Hills contributed to almost 63.3 per cent of the total sales value and 50 per cent of the total transactions.

Existing property transactions witnessed a year-on-year increase of approximately 55.39 per cent in volume, with more than 6,000 transactions recorded.

The value of these transactions experienced a surge of around 62 per cent YoY, reaching around Dhs19.5bn, compared to Dhs12.01bn in May 2022. Palm Jumeirah, Burj Khalifa, Dubai Hills, Wadi Al safa 3, Business Bay, Dubai Marina (Marsa Dubai), Madinat Al Mataar, Jumeirah Village Circle (JVC), Al Hebiah Fifth, and Emirate Living contributed to more than 45 per cent of the total sales value and 39 per cent of the total transactions.

According to Property Finder’s proprietary data, the top searched areas for owned apartments in May 2023 continued to include Dubai Marina, Downtown Dubai, Business Bay, Palm Jumeirah, and Jumeirah Village Circle. Dubai Hills Estate, Palm Jumeirah, Arabian Ranches, DAMAC Hills (Akoya by DAMAC), remained most preferred for those looking to own villas/townhouses with the addition of Al Furjan.

Scott Bond, UAE country manager at Property Finder said: “May 2023 has yet again established the fact that Dubai’s real estate sector continues to thrive amid a largely dynamic property landscape. It is interesting to see the significant rise in off-plan transactions, hinting of a future that knows no slowdown.

“Moreover, the growth from April has been remarkable with a significant increase in values. As a PropTech home search enabler, we look forward to seeing the rise in momentum persist as we enter into June and continue to prioritise a seamless consumer experience that facilitates this growth.”

Read: Global HNWIs to pour $2.5bn in Dubai property in 2023: Knight Frank