Dubai Real Estate Witnessed Property Transactions Worth AED 34 Billion

Dubai real estate activity saw a significant surge during May. The number of transactions reached 11,700, marking a substantial 78% increase in volume compared to May 2022 when there were 6,587 transactions. In terms of sales value, there was an impressive 87% growth compared to a similar period in 2022 with transactions amounting to AED 34 billion. This indicates a remarkable improvement from April 2023 which recorded 8,077 transactions valued at AED 26.5 billion.

Dubai Real Estate Trends – May 2023

Property Finder’s May 2023 data suggest that the majority of individuals interested in property ownership showed a preference for apartments which accounted for 58% followed by 42% that expressed interest in villas or townhouses.

In terms of rentals, apartments were the top choice for 77.7% of tenants with 61% preferring furnished apartments. In terms of unit preferences, 35% of tenants sought one-bedroom apartments in May 2023 followed by 31.4% who preferred two-bedroom units. As for villas and townhouses, 43.5% of tenants primarily looked for three-bedroom units, while 35.5% searched for properties with four bedrooms or more. There was a slight increase in home seekers looking for apartments in May 2023 rising from 54% in May 2022 to 58%. The most commonly searched apartment size was one and two-bedroom apartments.

Off-Plan Property Transaction Trends Dubai – May 2023

Off-plan transactions played a significant role in Dubai’s real estate market growth. For May 2023, it represented 49% of the total sales volume and 43% of the value. The number of off-plan property sales surged by 110 percent year-on-year, with over 5,700 transactions recorded compared to 2,716 in May 2022.

This increase also translated into a rise in the value of off-plan properties, which grew by almost 136% to over AED 14.5 billion, surpassing the AED 6.15 billion recorded in May 2022. Dubai Marina, Dubai Harbour, Burj Khalifa, Palm Jumeirah, Jumeirah Village Circle and others accounted for an estimated 63.3% of the total sales value and 50% of the transactions in Dubai.

Existing property transactions also experienced a notable year-on-year increase of approximately 55.4% in volume, with over 6,000 transactions recorded. The value of these transactions saw a surge of around 62% year-on-year, reaching AED 19.5 billion, compared to AED 12 billion in May 2022. Palm Jumeirah, Burj Khalifa, Dubai Hills and several other areas contributed significantly to the total sales value and transactions.

Sought-after Areas in Dubai – May 2023

Dubai Marina, Downtown Dubai, Business Bay, Palm Jumeirah, and Jumeirah Village Circle remained the most searched areas for owned apartments in May 2023 according to Property Finder’s data. For villas/townhouses, Dubai Hills Estate, Palm Jumeirah, Arabian Ranches, DAMAC Hills, and Al Furjan emerged as the preferred choices among potential buyers. Scott Bond, UAE country manager at Property Finder highlighted the thriving real estate sector in Dubai with a notable increase in off-plan transactions and significant growth in property values. This could be attributed to many initiatives taken by the Dubai government. This includes the Dubai 2040 Urban Plan focusing on sustainability and Dubai Strategic Plan 2026. 

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