The real estate market in Dubai has experienced a resurgence in demand and value, with a 53% annual growth in the value of real estate transactions recorded in March, reaching Dh34.2 billion ($9.3 billion). According to a report by real estate listings website Property Finder, the emirate recorded 12,000 real estate transactions last month, a 45% annual increase in volume compared to the same time last year.
Off-plan transactions in Dubai accounted for 52.8% of the total property sales in March and 36.8% of the total value. This represents a 95% annual growth in the volume of off-plan transactions, with 6,400 transactions recorded last month, compared to 3,287 in March 2022.
Dubai Creek Harbour accounted for 12% of the total off-plan transaction value and 10% of the total number of sales, while Dubai Marina represented 11.7% of the sales value and only 3.7% of sales. Jumeirah Village Circle accounted for 18.4% of the total sales in March, and only 7.7% of the total transaction value.
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 UAE property market has continued to recover from the coronavirus pandemic on the back of government initiatives, higher oil prices and other measures to support the economy. Property transactions in Dubai and Abu Dhabi surged last year amid higher demand from buyers. The performance of the Dubai property market last year was described as “exceptional” by Crown Prince, Sheikh Hamdan bin Mohammed, as the value of deals reached a new high of Dh528 billion.
Dubai also registered a 34% annual growth in the value of secondary or ready property transactions to Dh21.6 billion last month from Dh16.1 billion in the corresponding period last year. The volume of secondary or ready properties also went up by 13% annually, with more than 5,700 deals recorded. This marked the highest volume and value for the month of March in a decade, Property Finder said.
Among prospective home seekers, the most commonly searched apartment size was two bedrooms, accounting for 34% of total searches, followed by one-bedroom apartments at 32%, the data showed. In the rental market, about 80% of tenants search for apartments and 20% look for villas or townhouses.
Dubai Marina, Downtown Dubai, Business Bay, Palm Jumeirah and Jumeirah Village Circle were the top-searched areas in March for rented apartments. Dubai Hills Estate, Palm Jumeirah, Arabian Ranches, Damac Hills and Mohammed Bin Rashid City were most preferred among those looking to own and rent villas or townhouses.
The surge in demand and value of real estate transactions in Dubai is a positive sign for the UAE’s economy and the wider region. As the market continues to recover, investors and buyers can expect to see new opportunities emerge in the months and years ahead.