IN JANUARY, DUBAI REAL ESTATE DEALS SURGED 129%

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Dubai’s real estate market started 2023 off strong, jumping more than 128.5% year over year to 9,800 sales transactions from 5,739 in the previous year.

A major regional real estate portal, Property Finder, published data showing the value of transactions increased by 178% to over Dh28 billion in the first month.

“In terms of value, the transactions for existing properties witnessed an increase of around 42 percent YoY, reaching over Dh16 billion compared to Dh11.4 billion in January 2022, recording the highest volume and value for the month in a decade,” said the portal.

Scott Bond, UAE Country Manager at Property Finder, stated that the year has had a great start with continued momentum and strong demand. “With evolving consumer preferences and record Y-o-Y success this January, we continue to behold a positive outlook for Dubai’s multi-faceted property sector,” he said.

ValuStrat predicts prices in the city’s core will rise by 7% to 10% in 2023, although competition from off-plan projects and higher mortgage rates may impact the secondary market. Rent increases are expected to stabilize by year-end.

“The fourth quarter of 2022 crowned a bumper year for Dubai’s real estate market,” ValuStrat noted, citing record transactions, high off-plan volumes, and peak villa prices.

Data from Property Finder highlights changing consumer preferences: 59% of buyers seek apartments, while 41% prefer villas or townhouses. In the rental market, 80% of tenants chose apartments, and 20% opted for villas/townhouses.

About 66% of renters are looking for furnished apartments, though only 46% of the market offers them. One-bedroom units lead demand, followed by two-bedroom options. Specifically, 54% of renters want one-bedroom apartments, and 29% want two-bedrooms.

In January 2023, existing property transactions surpassed 4,800, marking a 56% YoY increase. Off-plan sales also surged with over 5,000 transactions, a 90% rise in volume and 130% increase in value compared to January 2022, reaching over Dh12.1 billion — the highest January performance in a decade.