08 December 2022, Khaleej Times
Showcasing the resilience of Dubai real estate’s sector, transactions in November grew to 10,941 sales, recording a 58.5 per cent year-on-year increase compared to 6,905 transactions in the same month last year, according to Property Finder, a leading real estate portal. In terms of value, there was a significant increase of 70.8 per cent in transactions worth Dh30.5 billion compared to Dh17.9 billion in November 2021.
“We have seen positive momentum in the market over these past quarters, showcasing the resilience of Dubai’s real estate sector. We see positive sentiments for investment opportunities following various governmental reforms and initiatives, making Dubai’s properties one of the most preferred investment assets for the long term,” said Scott Bond, country manager, UAE at Property Finder.
In tandem with the record surge in transaction value and volume, Dubai’s property sector witnessed a price surge fuelled by the rising demand from high net worth individuals and foreign investors.
According to Zoom Property Insights, property prices increased by 1.8 per cent in October, with similar trending in November.
Average property prices have reached Dh 1,070, with 8.5 per cent and 13 per cent growth in the prices of apartments and villas, respectively. The luxury property segment in Dubai has reported growth of 88.9 per cent globally, leading Miami and Tokyo by huge margins.
Promising outlook for prime areas
Jumeirah, Downtown Dubai, Palm Jumeirah, DIFC, MBR City, Dubai Hills, and Business Bay are the popular areas for apartments, Zoom reported.
Ata Shobeiry, CEO of Zoom Property, said prime areas in Dubai would continue the upward momentum in 2023 as well. “The year 2022 proved to be a great year for the luxury property segment and the trend is expected to continue in 2023 as well. The launch of various new developments featuring ultra-prime properties will continue to attract HNWIs and foreign investors,” Shobeiry said.
Property Finder report said while existing properties recorded 5,825 transactions, with a remarkable increase of 54.8 per cent year-on-year, reflecting an outstanding sales transaction performance for November 2022, in terms of value, the transactions for existing properties witnessed an increase of 60.8 per cent year-on-year, reaching Dh17.8 billion compared to Dh11.1 billion in November 2021.
Off-plan properties witnessed a record-breaking performance, transacting more than Dh12.7 billion for the first time in a decade, with an increase of 87.1 per cent compared to Dh6.8 billion in November 2021. November 2022 also recorded the highest off-plan volume and value of transactions in a decade, maintaining a remarkable performance last month. The volume of off-plan properties recorded a significant increase of 63 per cent year-on-year, attaining 5,116 transactions compared to the same period last year, with a total of 3,143 transactions.
According to Property Finder’s proprietary data, the top demanded areas searched for sale in November were Dubai Marina, Downtown Dubai, Palm Jumeirah, Dubai Hills Estate, Business Bay, Jumeirah Village Circle, Mohammed Bin Rashid City, Jumeirah Beach Residence, Jumeirah Lake Towers and Damac Hills (Akoya by Damac). The top overall demanded areas for rent in November were Dubai Marina, Downtown Dubai, Jumeirah Village Circle, Business Bay, Dubai Hills Estate, Palm Jumeirah and Jumeirah Lake Towers.
HNWIs to drive luxury segment
In 2023, Dubai’s prime areas will continue to attract HNWIs and millionaires and prices are expected to sustain an upward trend, Zoom Property Insights report added. However, the mainstream residential market is expected to post steady growth in prices next year.
For 2023, the report forecasts a strong double-digit growth of around 15 per cent in the emirate’s prime areas, which encompass the neighbourhoods of The Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island. It sees up to 7 per cent average price increase in the emirate’s mainstream residential market in 2023.
“With the way the property market is performing, this figure looks certainly achievable. The areas famous for luxury properties, as well as affordable properties, are performing exceptionally well, paving the way for a strong end to the year 2022 and an equally strong start to 2023,” Shobeiry said.