BackDubai's real estate transactions soared by 53% annually to Dh34.2 billion ($9.3 billion) in March, driven by resurgent demand amidst the wider economic recovery. The emirate had a total of 12,000 real estate transactions last month, marking a 45% increase in volume from 8,344 deals during the same period last year, according to a report by Property Finder.
Off-plan transactions constituted 52.8% of the total property sales in March and 36.8% of the total value. A total of 6,400 off-plan transactions were recorded last month, reflecting a 95% annual growth in volume, compared to 3,287 in March 2022.
Scott Bond, UAE Country Manager at Property Finder, said, "March 2023 has recorded an interesting spike in both demand and value for the UAE's thriving property sector. We have seen the emergence of new consumer preferences such as a growing incline towards ownership, with an equally sustained growth within the rental market."
The Market Continues to Rise
The UAE property market is continuing to recover from the coronavirus pandemic on the back of government initiatives, higher oil prices, and other measures aimed at supporting the economy.
Dubai and Abu Dhabi experienced a surge in property transactions last year due to increased demand from buyers. Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, characterized the performance of the Dubai property market last year as "exceptional," with the value of deals reaching a new high of Dh528 billion.
Dubai's secondary or ready property transactions in March grew by 34% annually to Dh21.6 billion, from Dh16.1 billion during the corresponding period last year, according to Property Finder. More than 5,700 deals were recorded for secondary or ready properties, reflecting a 13% annual increase. Approximately 60% of potential buyers in Dubai are searching for apartments, while 40.3% are looking for villas or townhouses.
For prospective home seekers, the most frequently searched apartment size was two bedrooms, followed by one-bedroom apartments, the data showed.
For rented apartments, top-searched areas were Dubai Marina, Downtown Dubai, Business Bay, Palm Jumeirah, and Jumeirah Village Circle. Dubai Hills Estate, Palm Jumeirah, Arabian Ranches, Damac Hills, and Mohammed Bin Rashid City were preferred by those looking to own and rent villas or townhouses.
Prime Markets Hit New High in Q1 2023
In total, 88 transactions above $10 million were recorded in the first quarter of 2023, for a total of $1.63 billion (AED 6 billion). Palm Jumeirah, Emirates Hills and Jumeirah Bay Island, three of the top luxury communities in Dubai, accounted for 64% of those sales.
Dubai has been ranked as the fourth most active luxury market in the world, ranking just behind London, New York and Los Angeles. It is expected that property values will rise by 13.5% and that the top areas will continue to see strong activity. However, other areas in the city are emerging to become key market players - chief among them is Tilal Al Ghaf, a master planned residential neighbourhood that is expected to start delivering its first phase of homes this year.
