Dubai Real Estate

Dubai property at 10-year high with $9.7bn Q3 off-plan sales

Property Finder analysis shows the volume of sales and value of property at decade-high.

Dubai real estate is at a ten-year high for the quarterly volume of property transactions and the value of off-plan sales, according to Property Finder.

The Q3 2023 Market Watch Report revealed record transaction values in Dubai as demand for property was found to be a preferred investment with great potential for long term value as a result of emerging trends that are reshaping the narrative for real estate in the UAE.

Property Finder’s proprietary data found that Dubai recorded 31,181 transactions compared to 25,400 in Q3 2022, marking a 22.76 per cent year-on-year increase in the performance of ready and off-plan transactions, leading to the highest quarterly peak in a decade.

 

Dubai property data

Dubai’s off-plan properties made for 47.2 per cent of the total transactions compared to 46.5 per cent in Q3 2022, with 14,714 transactions in Q3 2023 compared to 11,809 in Q3 2022.

It represents an increase of around a 24.6 per cent and the highest sales transaction volume for Q3 in a decade.

Sales value for off-plan properties touched AED35.71bn ($9.7bn) transactions in Q3 2023, compared to AED24.34bn ($6.6bn) in Q3 2022, leading to a 46.72 per cent increase and contributing to 36.6 per cent of the total transaction value witnessing the highest value recorded ever for Q3.

 

A spike in off-plan may have resulted in new trends within the existing property market, but it continues to complement overall growth with higher values throughout.

Tenants changed their behaviour, preferring to own a home instead of renting, driven by the surge in average market value for renting.

In Dubai, existing/ready transactions in Q3 2023 presented 52.8 per cent of the total sales transactions compared to 53.5 per cent in Q3 2022.

 

Making up for 52.8 per cent of the total transactions, existing sales witnessed a new record with 16,467 transactions compared to 13,591 in Q3 2022, to be the highest performance for a quarter ever recorded, with a year-on-year increase of 21.2 per cent and 7.24 per cent spike when compared to Q2 2023.

Dubai real estate

Also hitting a record high in values touching AED61.8bn ($$16.8bn) in comparison to AED45.03bn ($12.3bn) in Q3 2022, marking a remarkable increase of 37.3 per cent to record the highest transaction value ever recorded for a quarter, and an 11.2 per cent increase from Q2 2023.

Dubai saw a significant increase in rental contracts with a year-on-year increase of 11.2 per cent by registering 156,422 contracts compared to 140,685 contracts in Q3 2022.

New contracts reflected an increase of 2.63 per cent by registering 84,766 contracts compared to 82,596 contracts in Q3 2022.

Renewed contracts supported the rental market by registering 71,659 contracts to witness an increase of 23.36 per cent compared to 58,089 contracts in Q3 2022, with a notable increase by 17 per cent compared to 61,219 registered contracts in Q2 2023.

All in all, more people were found to be looking for a home in the city, driving prospects for sustained momentum in the months to come.

Dubai's luxury real estate

According to Property Finder’s proprietary data, the top choices for those looking to own an apartment were:

  • Dubai Marina
  • Downtown Dubai
  • Business Bay
  • Palm Jumeirah
  • Jumeirah Village Circle

The best places for potential villas were:

  • Dubai Hills Estate
  • Palm Jumeirah
  • Arabian Ranches
  • Al Furjan
  • Damac Hills

Dubai Marina, Jumeirah Village Circle (JVC), Business Bay, Downtown Dubai, and Jumeirah Lake Towers (JLT) were preferred for apartment rentals in Q3 2023.

Dubai Hills Estate, Damac Hills 2, Al Barsha, Jumeirah, and Damac Hills were the top areas among renters searching for villas.

Cherif Sleiman, Chief Revenue Officer at Property Finder said: “We closed Q3 with an increased uptake in off-plan properties, strong investor confidence and a rising demand for ownership.

“Q3 2023 has only taken that success a notch higher, revealing even more opportunities to grow in the months to come. In the coming months, we remain committed to monitoring all aspects of the market trends to enable better decisions for property seekers through data backed transparency and enhanced trust across our platform.”

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