05 July 2023, Gulf Business
Dubai’s property market has continued its growth run for the month of June. It has defied trends for a mid-year dip to log 10,419 real estate transactions. The emirate’s real estate market saw a 17.78 per cent increase in volume compared to 8,846 in June 2022, reported real estate portal Property Finder.
The value of the real estate transactions witnessed a surge of 34.1 per cent compared to the same month last year, reaching Dhs30.41bn. This marks the highest transaction volume and value for the month of June in a decade.
Dubai real estate buying trends
Ten areas contributed to almost 68 per cent of the total sales value and 54 per cent of the total number of transactions in the off-plan market. These are – Dubai Marina, Palm Jumeirah, Dubai Harbour, Dubai Creek Harbour, Dubai Hills, Burj Khalifa, Jumeirah Lakes Towers, and Jumeirah Village Circle, as well as Umm Suqeim Third and Dubai Design District.
The real estate portal reported that the top areas that buyers looked at for purchasing apartments were Dubai Marina, Downtown Dubai, Business Bay, Jumeirah Village Circle, and Palm Jumeirah. While, Dubai Hills Estate, Palm Jumeirah, Arabian Ranches, DAMAC Hills, and Al Furjan were the most looked-up areas for those looking to own villas/townhouses.
According to Property Finder, 57.5 per cent of property buyers were looking for an apartment, while 42.5 per cent were interested in villas/townhouses. The most commonly searched apartment size for purchase was two-bedroom, accounting for 34.1 per cent, closely followed by one-bedroom apartments at 33.4 per cent.
Scott Bond, UAE country manager at Property Finder, said, “In June 2023, Dubai’s booming property sector once again marked a record rise in both volume and value. With off-plan transactions continuing to surge, the existing properties market reported a slight dip in volume, offset by an increase in value. While overall trends mostly remained the same, we have witnessed variations in home seeker preferences in the off-plan as well as the existing properties segment. It will be interesting to see how the dynamic evolves during the upcoming summer months.”
The off-plan segment played a significant role in driving the uptick in Dubai’s real estate market in June, accounting for 49.6 per cent of the total number of sales transactions and 41.5 per cent of total transaction value.
The volume of off-plan property sales rose by 46.6 per cent YoY, with more than 5,165 transactions recorded, compared to 3,523 in June 2022. This increase was reflected in the value of off-plan properties, which surged by almost 80.26 per cent to more than Dhs12.6bn, far surpassing the Dhs7.007bn recorded in June 2022.
Dubai rental market trends
Meanwhile, in the rental market, 78.5 per cent of tenants were searching for apartments, and 21.5 per cent were looking for villas or townhouses. Around 61.8 per cent of those seeking apartments favored furnished properties, while 34.2 per cent were searching for unfurnished options. Among the tenants who can afford to rent a villa or townhouse, 54.5 per cent preferred unfurnished units, while 42.1 per cent favored furnished options.
Around 35.1 per cent of tenants were looking for one-bedroom units last month, while 31.1 per cent expressed a preference for two-bedroom apartments, and 22 per cent were searching for studios. Among villas/townhouses, three-bedroom units enjoyed the highest popularity at 43.4 per cent, while 36.1 per cent of tenants were searching for four-bedroom or larger options.