Dubai real estate: Sales transactions record over 128.5% YoY rise in Jan, reveals Property Finder

Recent data shared by the property portal, Property Finder, on Dubai’s real estate sector has revealed that in January real estate sales transactions crossed 9,800 compared to 5,739 in January 2022. These figures reflect a more than 128.5 per cent year-on-year (YoY) increase in volume.

The value of transactions witnessed an outstanding increase, recording over Dhs28bn, an increase beyond 178 per cent compared to the same month last year.

In terms of value, the transactions for existing properties witnessed an increase of around 42 per cent YoY, reaching over Dhs16bn compared to Dhs11.4bn in January 2022, recording the highest volume and value for the month for in a decade.

The data showed a significant evolution in property preferences for both owners and tenants.

Scott Bond, UAE country manager at Property Finder said: “Led by a steady demand for housing and a rising inclination towards ownership, the coming months seem to behold a great spike in property investments. 2023 has definitely been off to a great start, with continued momentum from last year and heightened resilience for Dubai’s property sector. With evolving consumer preferences and record YoY success this January, we continue to behold a positive outlook for Dubai’s multi-faceted property sector, as a trusted go-to place marketplace for our customers.”

Buyer trends

According to Property Finder’s data, 59 per cent of people who have the desire to own property are looking for an apartment, while 41 per cent are interested in villas/townhouses. Additionally, in the rental segment, 80 per cent of tenants have been choosing apartments and 20 per cent are looking for villas/townhouses.

Furnished properties acquire 46 per cent of the market preferences while 54 per cent of the demand remains for unfurnished units whereas, 66 per cent of renters are looking for furnished units while 34 per cent are inclined towards unfurnished units. 41 per cent of the market demand is for one-bedroom units followed by two-bedroom units. In contrast, 54 per cent of renters are seeking one-bedroom units, followed by 29 per cent searching for two-bedroom units.

In January, both existing and off-plan transactions recorded the highest performance. In terms of volume, the existing (secondary/ready) transactions recorded around 56 per cent YoY increase by registering more than 4,800 transactions.

Off-plan transactions witnessed a remarkable performance, with a 90 per cent YoY increase recording over 5,000 transactions, compared to 3,086 in January 2022; as well as an increase of 130 per cent in value worth more than Dhs12.1bn, as opposed to Dhs5.3bn during the same time last year.

This was the highest volume and value for off-plan transactions for the month of January over the last decade, said Property Finder.

Dubai’s property market continues to maintain momentum in its sales transactions with January’s accelerated market performance adding to Q4 2022’s record 29,205 sales transactions and sustained growth in market value.

Most popular areas

According to Property Finder’s proprietary data, the top searched areas in January 2022 for apartments continued to include Dubai Marina, Downtown Dubai, Palm Jumeirah, Business Bay, Jumeirah Village Circle and Dubai Hills Estate, Palm Jumeirah,  Arabian Ranches, DAMAC Hills (Akoya by DAMAC) was popular when it came to villas/townhouses.

In recent news, Property Finder reported that the real estate market in Dubai experienced a record-breaking year in 2022, with registered sales reaching 88,028 transactions as of November, up from 60,258 transactions in 2021.

In terms of value, Dubai’s real estate market has surpassed Dhs24obn, recording a 61 per cent gain compared to 2021. This growth has been fuelled by the remarkable success of off-plan deals, which climbed by 86 per cent compared to 2021.

Read: Dubai’s real estate market surpasses Dhs240bn in 2022: Property Finder

Off-plan transactions value made up 44 per cent of all transactions in 2022, up from 40 per cent in 2021 as measured by volume, in the market, which saw a shift between these two performance categories.