Increase in Dubai’s Real Estate Transactions: A 37% Rise in Q2, According to Report

Dubai’s real estate transactions in the sector have witnessed remarkable growth in the second quarter of 2023, with transactions surging by 37 percent compared to the same period last year, according to recent data published by Better Homes and recorded by the Dubai Land Department. The total value of properties sold during this period reached a staggering 69.8 billion dirhams ($19 billion), with a total of 27,215 transactions taking place.

The data also revealed that apartment transactions experienced the most significant growth, jumping by 57 percent in comparison to the second quarter of the previous year. On the other hand, villa and townhouse transactions observed a slight decline of 9 percent. This decrease can be attributed to a drop in off-plan villa transactions. Consequently, the total value of townhouse and villa properties sold fell by 10 percent quarter on quarter. In contrast, apartments witnessed a 5 percent increase in the same period.

Among the different areas in Dubai, Dubai Production City demonstrated the highest growth in apartment prices, witnessing a 23 percent increase quarter on quarter. Following closely behind were Living Legends and Al-Habtoor City, which experienced growth rates of 21 and 13 percent respectively. On the other hand, Jumeirah Islands recorded the fastest growth in villa prices, with an impressive 13 percent increase quarter on quarter and a remarkable 32 percent increase year on year.

The report highlighted the robust demand for real estate, with Better Homes witnessing an 82 percent surge in buyer leads year on year. Notably, the proportion of end-users purchasing real estate rose to 40 percent. Rising rents have played a significant role in driving renters toward the sales market.

The data also shed light on the substantial number of new real estate projects announced in Dubai, with more than 34,000 units launched thus far in 2023.

In the luxury properties segment, transactions increased by 3 percent on a quarterly basis and an impressive 50 percent year on year.

However, the rental market in Dubai has faced challenges. The report noted that due to the significant increase in rental prices over the last 18 months, many tenants have chosen to renew their contracts instead of seeking new accommodations. Consequently, leasing transactions at Better Homes decreased by 29 percent compared to the second quarter of 2022.

Furthermore, the secondary market has experienced constraints in terms of supply, with Better Homes observing a 4 percent decline in new listings compared to the same period last year.

In conclusion, Dubai’s real estate sector continues to demonstrate commendable growth, with significant increases in transactions and property values. The apartment segment has particularly stood out, while the villa and townhouse markets have experienced some challenges. The report’s findings emphasize the robust demand for real estate and the impact of rising rents on the market. Despite these challenges, the city has seen a consistent influx of new real estate projects, showcasing Dubai’s resilience and attractiveness as a destination for property investment.

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