Dubai's Real Estate Transactions Witness Impressive 43% Year-on-Year Growth in August

Dubai's Real Estate Transactions Witness Impressive 43% Year-on-Year Growth in August

The city registered 11,818 real estate transactions in the previous month, marking a 25% increase compared to the 9,450 transactions reported in August 2022.

In August, Dubai experienced a substantial year-on-year (YoY) increase of 43 percent in the total worth of real estate transactions, amounting to Dhs33.7 billion, as reported by Property Finder. This surge reflects the city's enduringly vigorous property market due to its robust economic expansion.

The city reported 11,818 real estate transactions last month, marking a 25 percent increase in volume compared to the 9,450 transactions recorded in August 2022.

Property preferences in the sector largely mirrored those of July, with 59 percent of property buyers seeking apartments and 41 percent interested in villas or townhouses. Among tenants, 81 percent were looking for apartments, while 19 percent preferred villas.

In terms of apartment size, two-bedroom apartments were the most sought-after, accounting for 34 percent of searches, followed closely by one-bedroom apartments at 33 percent.

The off-plan segment played a significant role in driving Dubai's real estate market in August, constituting 58 percent of total sales transactions and 50 percent of the total transaction value.

The volume of off-plan property sales surged by 63 percent year-on-year, with 6,837 transactions recorded, compared to 4,189 in August 2022.

This increase was reflected in the value of off-plan properties, which soared by almost 103 percent to reach Dhs17 billion, significantly surpassing the Dhs8.3 billion recorded during the same period a year ago.

Cherif Sleiman, Chief Revenue Officer at Property Finder, commented,

"In August 2023, Dubai's property sector continued its steep year-on-year growth trajectory. We were pleased to see the sustained momentum in growing investor appetite, with the market remaining robust over the holiday months and the off-plan segment witnessing an unprecedented surge."

Dubai's property market has been thriving, defying the trend seen in many parts of the world where home values have declined due to rising interest rates and economic uncertainties.

Ten areas accounted for nearly 65.3 percent of the total sales value and 53 percent of the total number of transactions in the off-plan market. These areas include Business Bay, Dubai Harbour, Dubai Creek Harbour, Jumeirah Lakes Towers, Jumeirah Village Circle, Sobha Heartland, Al Yufrah 1, Arjan, Jumeirah Village Triangle, and Madinat Al Mataar.

The existing property segment in August experienced another year-on-year increase in value, growing by around 11 percent to reach Dhs16.9 billion compared to Dhs15.3 billion the previous year.

Palm Jumeirah, Burj Khalifa, Emirates Living, Dubai Marina, Al Hebiah Fifth, Palm Deira, Arjan, Jumeirah Village Circle, Business Bay, and Dubai Hills contributed to over 40 percent of the sales value and 34 percent of the volume.

News Source: Gulf Business

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