15 March 2023, Arabian Business
The off-plan market was a driving factor in fueling the country’s real estate growth
Dubai’s residential real estate witnesses 43.8% surge in demand in February 2023
Dubai’s residential market witnessed a 43.8 percent surge in demand last month, with 9,020 sales transactions compared to 6,310 in February 2022, according to a report by ZāZEN Properties, a sustainable property developer in the UAE.
The off-plan market was a driving factor in fueling the country’s real estate growth.
The UAE’s real estate sector is also fuelled by expats who are looking to stay in the country long-term, according to ZāZEN Properties’ co-founder and chief operating officer Madhav Dhar.
“Data shows that in February, 41 percent were searching for one-bedroom units while 33 percent were looking for two-bedroom units. We have seen similar trends with our flagship development ZāZEN One which launched last year and sold out in 6 months, as well as in our most recent project ZāZEN Gardens in Al Furjan, near the Gardens metro, which has been very well received,” Dhar said.
Off-plan properties in Dubai
In February 2023, off-plan transactions in Dubai grew 77.8 percent year-over-year, registering over 4,500 transactions, compared to 2,533 in the same period last year. This growth trend has underpinned the strength of Dubai’s overall real estate market, the report said.
The value of off-plan properties also increased year-on-year, with a growth of 154 percent, reflecting the highest volume and value for off-plan sales during any February in the last decade.
The value of off-plan transactions was worth $30 million more than the 4.4 billion logged in February 2022.
Apartment prices increased by 11.2 percent with an average value of AED1,211 per square foot and an average annual rental asking price of AED99,737.
Meanwhile, villa prices grew by 13.6 percent, with an average value of AED1,432 per square foot and an average annual rental asking price of AED295,436.
Dubai Marina, Downtown Dubai, Business Bay, Palm Jumeirah, and Jumeirah Village Circle were the top searched areas for apartments, while Dubai Hills Estate, Palm Jumeirah, and Arabian Ranches were the most desired areas to own villas and townhouses.
ZāZEN Properties reported that off-plan sales for its latest development, ZāZEN Gardens, launched in late 2022, have already sold over 60 percent of the units since its mid-December 2022 launch.
The project, situated near The Gardens metro station, is the first LEED Gold-certified development. Handover is scheduled for April 2024, when the project is expected to achieve a reduction of 470 metric tonnes of carbon emissions annually.