Based on Property Finder's exclusive data, the most popular areas for searched apartments in May were Dubai Marina, Downtown Dubai, Business Bay, Palm Jumeirah, and Jumeirah Village Circle.
Property Finder has shared insights into the prevailing trends that characterized Dubai's thriving property market throughout the month of May.
Based on the latest data provided by the property portal, May witnessed a remarkable surge in real estate transactions, with a total of 11,700 recorded. This represents a substantial increase of 78 percent in volume compared to May 2022, when 6,587 transactions took place.
Furthermore, the value of sales transactions experienced a significant uptick of 87 percent compared to the same period last year, amounting to a staggering Dh34 billion. This substantial growth is evident when compared to the figures from April 2023, during which 8,077 transactions were recorded with a value of Dhs26.5 billion.
Notable trends in May
Property Finder's data for May 2023 reveals key insights into the preferences of individuals seeking to own or rent properties in Dubai.
For potential property owners, 58.1 percent expressed a desire for apartments, while 41.9 percent showed interest in villas/townhouses.
In the rental market, 77.7 percent of tenants were searching for apartments, while 22.3 percent focused on villas/townhouses. Among tenants, 61.2 percent sought furnished apartments, while 37 percent preferred unfurnished units. When it comes to tenants searching for villas/townhouses, 56.6 percent preferred unfurnished options, while 42.4 percent were interested in furnished units.
In terms of apartment size preferences, 34.9 percent of tenants were looking for one-bedroom units in May 2023, followed by two-bedroom units at 31.4 percent, and studios at 21.78 percent. For villas/townhouses, 43.5 percent of tenants showed a preference for three-bedroom units, while 35.5 percent were searching for four-bedroom or larger options.
May 2023 witnessed an increase in the percentage of investors or home seekers looking for apartments, rising from 53.9 percent in May 2022 to 58.1 percent. Among home seekers, the most commonly searched apartment size was two bedrooms, accounting for 34.1 percent, followed by one-bedroom apartments at 33.4 percent.
Dubai real estate market: Off-plan sales surge
Off-plan property transactions played a significant role in driving the growth of Dubai's real estate sector in May. These transactions accounted for 49 percent of the total sales volume and 43 percent of the value. The volume of off-plan sales skyrocketed by 110 percent year-on-year, with over 5,700 transactions recorded, compared to 2,716 in May 2022.
The value of off-plan properties also saw a substantial increase of almost 136 percent, surpassing Dhs14.5 billion, compared to Dhs6.15 billion in May 2022. Notably, only 10 areas, including Dubai Marina, Dubai Harbour, Burj Khalifa, Palm Jumeirah, Jumeirah Village Circle (JVC), Wadi Al Safa 5, Business Bay, Dubai Water Canal, Dubai Creek Harbour, and Dubai Hills, contributed to a significant portion of the total sales value and transaction volume.
Existing property transactions witnessed a year-on-year increase of approximately 55.39 percent in volume, with over 6,000 transactions recorded. The value of these transactions surged by around 62 percent, reaching approximately Dhs19.5 billion, compared to Dh12.01 billion in May 2022. Palm Jumeirah, Burj Khalifa, Dubai Hills, Wadi Al Safa 3, Business Bay, Dubai Marina, Madinat Al Mataar, Jumeirah Village Circle, Al Hebiah Fifth, and Emirate Living were among the areas that contributed significantly to the total sales value and transaction volume.
According to Property Finder's data, the most sought-after areas for owned apartments in May 2023 continued to be Dubai Marina, Downtown Dubai, Business Bay, Palm Jumeirah, and Jumeirah Village Circle. Dubai Hills Estate, Palm Jumeirah, Arabian Ranches, DAMAC Hills, and Al Furjan were the preferred choices for those looking to own villas/townhouses.
Scott Bond, UAE Country Manager at Property Finder, commented on the thriving real estate market, highlighting the significant rise in off-plan transactions and expressing optimism for continued growth in the coming months.
News Source: Gulf Business