The real estate market in Dubai is off to a phenomenal start in 2023, experiencing a remarkable surge in sales transactions and value. According to data published by Property Finder, a leading real estate portal in the region, the market witnessed a staggering 128.5% year-over-year increase in sales, with a total of 9,800 transactions compared to 5,739 the previous year.
Impressively, the value of these transactions skyrocketed by 178%, surpassing Dh28 billion in the first month alone. The surge in sales was predominantly driven by existing properties, which witnessed a 42% year-over-year increase in transactions, amounting to over Dh16 billion in January 2023. This represents the highest volume and value of transactions for the month in the past decade.
Scott Bond, the UAE country manager at Property Finder, expressed his optimism for the year ahead, stating that the property sector in Dubai is poised for continued growth. He attributed this positive outlook to a consistent demand for housing and a growing inclination towards property ownership. Bond also emphasized the evolving consumer preferences and the record success witnessed in January 2023 as key indicators of Dubai’s multi-faceted property market’s resilience.
ValuStrat, a renowned real estate consulting firm, predicts that property prices in Dubai’s city center will rise by an average of 7% to 10% by the end of 2023. However, they caution that increased competition from off-plan launches and higher mortgage interest rates might exert downward pressure on the secondary market. Additionally, ValuStrat anticipates that residential rent increases will stabilize by the conclusion of 2023.
Reflecting on the previous year, 2022 proved to be a remarkable period for Dubai’s real estate market. The market witnessed a surge in sales transactions, with off-plan volumes surpassing ready homes. Capital values for prime villas even exceeded the previous peak in 2014, and rental rates experienced substantial growth. The real estate consultancy further highlights that 2022 recorded the highest volume and value of property sales in Dubai to date.
Property Finder’s data also reveals notable shifts in the preferences of landlords and tenants. The report indicates that 41% of Dubai residents aspiring to own property are interested in villas or townhouses, while 59% prefer apartments. In the rental market, 80% of renters opt for apartments, while 20% consider villas or townhouses.
Interestingly, although furnished apartments constitute only 46% of the market’s offerings, 66% of renters express a preference for furnished accommodations, while 34% lean towards unfurnished homes. The demand for one-bedroom homes is particularly high, accounting for 41% of the market’s demand. Two-bedroom residences follow closely behind. Of the renters surveyed, 54% sought one-bedroom apartments, while 29% expressed interest in two-bedroom apartments.
January 2023 witnessed exceptional performance from both existing and off-plan transactions. The volume of secondary market transactions increased by nearly 56% compared to the previous year, totaling over 4,800 transactions. Off-plan transactions experienced remarkable growth, with over 5,000 transactions—an impressive 90% year-over-year increase from January 2022. These transactions also saw a 130% surge in value, amounting to over Dh12.1 billion, compared to Dh5.3 billion in the same period last year. These figures mark the highest volume and value of off-plan transactions in January over the past decade.
The unprecedented growth and resilience displayed by Dubai’s real estate market in the early months of 2023 reaffirm its position as a dynamic and attractive destination for property investments. With a positive outlook for the rest of the year, the market
The real estate market in Dubai is off to a phenomenal start in 2023, experiencing a remarkable surge in sales transactions and value. According to data published by Property Finder, a leading real estate portal in the region, the market witnessed a staggering 128.5% year-over-year increase in sales, with a total of 9,800 transactions compared to 5,739 the previous year.
Impressively, the value of these transactions skyrocketed by 178%, surpassing Dh28 billion in the first month alone. The surge in sales was predominantly driven by existing properties, which witnessed a 42% year-over-year increase in transactions, amounting to over Dh16 billion in January 2023. This represents the highest volume and value of transactions for the month in the past decade.
Scott Bond, the UAE country manager at Property Finder, expressed his optimism for the year ahead, stating that the property sector in Dubai is poised for continued growth. He attributed this positive outlook to a consistent demand for housing and a growing inclination towards property ownership. Bond also emphasized the evolving consumer preferences and the record success witnessed in January 2023 as key indicators of Dubai’s multi-faceted property market’s resilience.
ValuStrat, a renowned real estate consulting firm, predicts that property prices in Dubai’s city center will rise by an average of 7% to 10% by the end of 2023. However, they caution that increased competition from off-plan launches and higher mortgage interest rates might exert downward pressure on the secondary market. Additionally, ValuStrat anticipates that residential rent increases will stabilize by the conclusion of 2023.
Reflecting on the previous year, 2022 proved to be a remarkable period for Dubai’s real estate market. The market witnessed a surge in sales transactions, with off-plan volumes surpassing ready homes. Capital values for prime villas even exceeded the previous peak in 2014, and rental rates experienced substantial growth. The real estate consultancy further highlights that 2022 recorded the highest volume and value of property sales in Dubai to date.
Property Finder’s data also reveals notable shifts in the preferences of landlords and tenants. The report indicates that 41% of Dubai residents aspiring to own property are interested in villas or townhouses, while 59% prefer apartments. In the rental market, 80% of renters opt for apartments, while 20% consider villas or townhouses.
Interestingly, although furnished apartments constitute only 46% of the market’s offerings, 66% of renters express a preference for furnished accommodations, while 34% lean towards unfurnished homes. The demand for one-bedroom homes is particularly high, accounting for 41% of the market’s demand. Two-bedroom residences follow closely behind. Of the renters surveyed, 54% sought one-bedroom apartments, while 29% expressed interest in two-bedroom apartments.
January 2023 witnessed exceptional performance from both existing and off-plan transactions. The volume of secondary market transactions increased by nearly 56% compared to the previous year, totaling over 4,800 transactions. Off-plan transactions experienced remarkable growth, with over 5,000 transactions—an impressive 90% year-over-year increase from January 2022. These transactions also saw a 130% surge in value, amounting to over Dh12.1 billion, compared to Dh5.3 billion in the same period last year. These figures mark the highest volume and value of off-plan transactions in January over the past decade.
The unprecedented growth and resilience displayed by Dubai’s real estate market in the early months of 2023 reaffirm its position as a dynamic and attractive destination for property investments. With a positive outlook for the rest of the year, the market
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