Dubai Property Market Soars: 78% YoY Increase, AED 34bn Worth of Transactions

78% YoY increase, 11,700 transactions worth AED 34bn, Property Finder reports a significant increase in market performance for May 2023

Highlights:

• Significant spike was recorded from 8,077 transactions in April to 11,700 transactions in May, including a growth in values from AED 26.5 billion to AED 34 billion
• May 2023 recorded a 77% surge in volume over the same month last year
• In comparison to the same month last year, an increase of 87% was noticed in the value of transactions
• The number of off-plan property transactions increased by 110% YoY to record more than 5,700, compared to 2,716 in May 2022

After the resounding success of its latest industry enabling event - Property Finder Connect, and the launch of its latest campaign - ‘Find Every Home Here’, Property Finder has now revealed key trends that dominated Dubai’s consistently flourishing property market in the month of May 2023. According to latest data by the leading property portal in the MENA region, May 2023 saw 11,700 real estate transactions, recording a 78% increase in volume compared to 6,587 in May 2022.

The value of sales transactions witnessed a surge of 87% compared to the same month last year, reaching AED 34 billion. This also marks an incredible growth from April 2023, where 8,077 transactions were recorded with a value of AED 26.5 billion.

The market broadly followed the previous month’s trends in property preferences for owners and tenants alike. According to Property Finder’s data for May 2023, 58.1% of people who desire to own property were looking for an apartment, while 41.9% were interested in villas/townhouses.

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

Around 34.9% of tenants were looking for one-bedroom units in May 2023, followed by two-bedroom units, which accounted for 31.4% of the tenants’ preferences, while 21.78% were

searching for studios. For villas/townhouses, 43.5% of tenants were primarily looking for three-bedroom units, while 35.5% 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% in May 2022 to 58.1%. Among home seekers, the most commonly searched apartment size was two bedrooms, accounting for 34.1%, followed by one-bedroom apartments at 33.4%.

Off-plan transactions significantly supported Dubai’s real estate market uptrend in May, accounting for 49% of the total sales transaction volume and 43% of the value. The volume of off-plan property sales surged by 110% 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% to more than AED 14.5 billion, surpassing the AED 6.15 billion 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% of the total sales value and 50% of the total transactions.

Meanwhile, existing property transactions witnessed a YoY increase of approximately 55.39% in volume, with more than 6,000 transactions recorded. The value of these transactions experienced a surge of around 62% YoY, reaching around AED 19.5 billion, compared to AED 12.01 billion 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% of the total sales value and 39% 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 prioritize a seamless consumer experience that facilitates this growth.”

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