The real estate market in Dubai experienced a remarkable upswing in May: real estate transactions rose by an impressive 87% compared to the previous year. This surge in demand is attributed to the robust economic growth in Dubai.
According to a report by Property Finder, the total value of property transactions reached Dh34 billion ($9.3 billion) last month, compared to Dh26.5 billion in May 2022. The number of real estate transactions also rose significantly: 11,700 transactions were registered, an increase of 78 % compared to the 6,587 transactions in May 2022.
Off-plan deals played a crucial role in the growth of Dubai’s real estate market, accounting for 49% of total transaction volume and 43% of value, based on data from Property Finder. The volume of off-plan property sales recorded a staggering 110% annual increase with over 5,700 transactions in May, compared to 2,716 transactions in the previous year.
The value of off-plan properties also increased by almost 136% to more than Dh14.5 billion, surpassing the value of Dh6.15 billion recorded in April 2022.
Scott Bond, Country Manager for the UAE at Property Finder, was optimistic about the real estate sector in Dubai: “May 2023 has once again shown that the real estate sector in Dubai continues to thrive amidst a largely dynamic real estate landscape. It is interesting to see the significant increase in off-plan transactions, which points to a future that knows no slowdown… April’s growth was remarkable with a significant increase in values.”
The strong development of the real estate market in Dubai is in line with the country’s general economic growth. In the first nine months of 2022, Dubai’s economy grew by 4.6% on an annualized basis, and Emirates NBD estimates growth of 5% for the full year 2022, with growth of 3.5% forecast for this year.
S&P Global Ratings is also forecasting growth of 3% for Dubai’s economy in 2023 and expects the momentum to continue over the next two to three years.
The recovery of the UAE real estate market from the pandemic-related slowdown has been impressive and has been supported by government initiatives, higher oil prices and other measures to stimulate the economy.
In 2022, real estate transactions in Dubai and Abu Dhabi experienced a significant surge in demand. The value of transactions in Dubai reached a new high of Dh528 billion, an annual increase of 76.5%, while the number of transactions rose by 44.7% to 122,658.
The most sought-after areas for apartments in Dubai in May included Dubai Marina, Downtown Dubai, Business Bay, Palm Jumeirah and Jumeirah Village Circle, according to data from Property Finder. For villas and townhouses, properties in Dubai Hills Estate, Palm Jumeirah, Arabian Ranches and Damac Hills were the preferred choice of buyers.
With a seamless customer experience as a priority, Property Finder aims to support the continued growth and dynamism of Dubai’s real estate market. Scott Bond said: “As a PropTech home search provider, we look forward to the increasing momentum continuing in June and continue to prioritize a seamless customer experience that supports this growth.”
In summary, the real estate market in Dubai is experiencing a boom, fueled by strong economic growth and rising demand. The increase in off-plan transactions and the overall performance of the market point to a promising future for the real estate sector in Dubai.
Source: www.thenationalnews.com
