Dubai Real Estate Market Witnesses Remarkable Growth in May 2023, Property Transactions Experience 87% Surge
In May, the Dubai property market witnessed an astounding 87% surge in the value of its real estate transactions on an annual basis as the economy continued to demonstrate robust growth. The total value of property deals in May rose to AED 34 billion ($9.3 billion), up from AED 26.5 billion during the same period last year, as reported by the property listing website Property Finder.
Real estate transactions also saw a significant leap, with 11,700 transactions registered in May, marking a 78% YoY increase compared to 6,587 deals in May 2022.
Growth Driven by Off-Plan Deals
Off-plan property deals contributed considerably to the real estate market’s growth in May, accounting for 49% of the total sales transaction volume and 43% of the total value. Property Finder data revealed that off-plan property sales volume surged by 110% annually, with over 5,700 transactions, a dramatic increase from 2,716 deals a year earlier.
The value of these off-plan properties also saw an almost 136% jump, reaching over AED 14.5 billion, substantially surpassing the AED 6.15 billion recorded in April 2022.
Scott Bond, UAE Country Manager at Property Finder, expressed his views on this surge: “May 2023 has yet again established the fact that Dubai’s real estate sector continues to thrive amid a largely dynamic property landscape.” He also noted the significant rise in off-plan transactions as indicative of a market that shows no signs of slowing down.
A Stable Economy Fuels Market Growth
S&P Global Ratings projects that Dubai’s economy, which expanded by 4.6% annually in the first nine months of 2022, will grow by 3% in 2023 and maintain similar growth over the next few years. This robust economic expansion provides a conducive environment for the thriving real estate market.
Additionally, the UAE property market has seen a strong recovery from the pandemic-induced slowdown, maintaining its growth momentum this year, thanks to government initiatives, higher oil prices, and other measures supporting the economy.
Property Market Continues to See High Demand
Dubai and Abu Dhabi property markets experienced a surge in transactions last year due to increased buyer demand. The Crown Prince of Dubai, Sheikh Hamdan bin Mohammed, lauded the exceptional performance of the Dubai property market as it reached a new high, with transactions valued at AED 528 billion in 2022.
May 2023 follows this trend with a 53% surge in the value of deals and a 45% increase in the volume of transactions in April. Both value and volumes have steadily increased throughout the year.
Most Popular Properties in May
Developments in 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 Emirates Living accounted for more than 45% of total sales value and 39% of total transactions.
Regarding specific property preferences, the most searched-for apartment areas in May included Dubai Marina, Downtown Dubai, Business Bay, Palm Jumeirah, and Jumeirah Village Circle. The preferred locations for those seeking villas and townhouses were Dubai Hills Estate, Palm Jumeirah, Arabian Ranches, and Damac Hills.
The data also suggests a continuation of April’s trend, with 58.1% of prospective property owners seeking apartments, while the remainder showed interest in villas and townhouses. In the rental segment, 77.7% of tenants searched for apartments, and 22.3% looked for villas and townhouses, per the Property Finder report.
The upward trend in Dubai’s real estate market demonstrates a city ripe with opportunities for buyers and sellers, and the strong performance in May suggests this growth is set to continue into the future.
