Dubai property transactions value grew 43% YoY in August

Dubai recorded a 43 per cent year-on-year (YoY) growth in the value of real estate transactions in August to Dhs33.7bn, according to Property Finder, as demand in the city’s property market remains strong amid robust economic growth.

The city recorded 11,818 real estate transactions last month, a 25 per cent increase in volume compared to 9,450 transactions in August 2022.

The sector broadly followed July’s trends in property preferences for owners and tenants alike. Property Finder said 59 per cent of property buyers were looking for an apartment, while 41 per cent were interested in villas or townhouses.

Meanwhile, 81 per cent of tenants, were looking for apartments, while 19 per cent were interested in villas.

The most commonly searched apartment size for purchase in the city was two-bedroom, accounting for 34 per cent, closely followed by one-bedroom apartments at 33 per cent.

The off-plan segment played an even more significant role in driving the uptick in Dubai’s real estate market in August, accounting for 58 per cent of the total sales transactions and 50 per cent of the total transaction value.

The volume of off-plan property sales soured by 63 per cent YoY, with 6,837 transactions recorded, compared to 4,189 in August 2022.

This increase was reflected in the value of off-plan properties, which surged by almost 103 per cent to Dhs17bn, vastly surpassing the Dhs8.3bn during the same period a year ago.

“In August 2023, Dubai’s property sector continued the steep YOY growth trajectory,” said Cherif Sleiman, chief revenue officer at Property Finder.

“We were pleased to see the sustained momentum in growing investor appetite, with the market remaining robust over the holiday months and the off-plan segment witnessing an unprecedented surge.”

Dubai’s booming property market

Dubai’s property market has been booming, bucking the trend in many parts of the world, where home values have dropped amid surging interest rates and a darkening growth outlook.

Ten areas accounted for almost 65.3 per cent of the total sales value and 53 per cent of the total number of transactions in the off-plan market.

These include perennial favourites Business Bay, Dubai Harbour, Dubai Creek Harbour, Jumeirah Lakes Towers, and Jumeirah Village Circle, as well as newcomers Sobha Heartland, Al Yufrah 1, Arjan, Jumeirah Village Triangle, and Madinat Al Mataar.

The existing property segment in August experienced another YoY rise in value and experienced a notable growth at around 11 per cent YoY to reach Dhs16.9bn compared to Dhs15.3bn last year.

Palm Jumeirah, Burj Khalifa, Emirates Living, Dubai Marina, Al Hebiah Fifth, Palm Deira, Arjan, Jumeirah Village Circle, Business Bay, and Dubai Hills contributed to more than 40 per cent of the sales value and 34 per cent of the volume.

Read: Dubai real estate market is world’s busiest for luxury properties over $10m