Value of Dubai property deals surges 87% to $9.3bn in May

The volume of real estate market transactions climbed 78% with 11,700 deals last month, Property Finder says

Properties on Palm Jumeirah were among the most searched for by buyers in May. Photo: Nakheel

The value of real estate transactions in the Dubai property market surged by 87 per cent on an annual basis in May as demand continued to rise amid robust economic growth.

The aggregate value of property deals rose last month to Dh34 billion ($9.3 billion) from Dh26.5 billion recorded in the same period of 2022, according to a report by real estate listings website Property Finder.

The emirate registered 11,700 real estate transactions, a 78 per cent year on year increase in volume compared to 6,587 deals recorded in May 2022.

Off-plan deals significantly supported Dubai’s real estate market growth in May, accounting for 49 per cent of the total sales transaction volume and 43 per cent of the value, according to Property Finder data.

The volume of off-plan property sales surged to more than 5,700 transactions, a 110 per cent jump on an annual basis, from 2,716 deals registered a year earlier.

This increase was reflected in the value of off-plan properties, which rose by almost 136 per cent to more than Dh14.5 billion, surpassing the Dh6.15 billion recorded in April 2022.

“May 2023 has yet again established the fact that Dubai’s real estate sector continues to thrive amid a largely dynamic property landscape,” Scott Bond, UAE country manager at Property Finder, said.

“It is interesting to see the significant rise in off-plan transactions, hinting of a future that knows no slowdown … growth from April has been remarkable with a significant increase in values.”

Dubai’s economy expanded by 4.6 per cent on an annual basis in the first nine months of 2022, according to data from the emirate's statistics centre. Emirates NBD estimates Dubai's full-year growth for 2022 at 5 per cent and expects its economy to expand by 3.5 per cent this year.

S&P Global Ratings projects Dubai economy will grow by 3 per cent in 2023 and sustain the same growth momentum over the next two to three years.

The UAE property market has also recovered strongly from the pandemic driven-slowdown, maintaining growth momentum this year on the back of government initiatives, higher oil prices and other measures to support the economy.

Property transactions in Dubai and Abu Dhabi surged last year amid higher demand from buyers.

The performance of the Dubai property market last year was described as “exceptional” by the emirate's Crown Prince, Sheikh Hamdan bin Mohammed, as the value of deals reached a new high of Dh528 billion.

The value of transactions was up 76.5 per cent annually, while the number of transactions, at 122,658, rose 44.7 per cent year on year, a Dubai Media Office statement said in January.

Dubai’s property market trend in May follows a 53 per surge in the value of deals and a 45 per cent rise in the volume of transaction in April, both value and volumes have increased steadily this year.

“As a PropTech home search enabler, we look forward to seeing the rise in momentum persist as we enter into June and continue to prioritise a seamless consumer experience that facilitates this growth,” Mr Bond said.

Secondary market deals in the emirate recorded an annual increase of more than 55 per cent in volume, with more than 6,000 transactions recorded.

Value of these transactions jumped 62 per cent year on year to Dh19.5 billion in May 2022.

Developments in Palm Jumeirah, Burj Khalifa, Dubai Hills, Wadi Al Safa 3, Business Bay, Dubai Marina’s Marsa Dubai, Madinat Al Mataar, Jumeirah Village Circle, Al Hebiah Fifth and Emirate Living contributed to more than 45 per cent of the total sales value and 39 per cent of the total transactions.

The most searched for areas for apartments in May included Dubai Marina, Downtown Dubai, Business Bay, Palm Jumeirah and Jumeirah Village Circle, according to last Property Finder data.

Properties in Dubai Hills Estate, Palm Jumeirah, Arabian Ranches and Damac Hills were preferred by buyers looking to own villas and townhouses, data showed.

Buyers’ preferences also followed April trends, with more than 58.1 per cent of people seeking to own a property looking for an apartment, while the reminder showed interest in villas and townhouses.

Within the rental segment, 77.7 per cent of tenants searched for apartments, and 22.3 per cent looked for villas and townhouses, according to the Property Finder report.