DUBAI, UAE: ZāZEN Properties, the UAE's leading sustainable real estate developer, noted that demand in the Dubai residential market grew by 43.8% last month, with 9,020 sales transactions, compared to 6,310 in February 2022. According to ZāZEN Properties, the country's off-plan market has been a driving factor in the UAE's real estate growth.
In February 2023, Dubai saw a 77.8% year-on-year increase in off-plan transactions. More than 4,500 transactions were registered, compared to 2,533 in the same period last year. The growth in this segment maintained its trend of supporting the strength of Dubai's overall real estate market.
The value of off-plan properties also rose year-on-year, by 154%. The value of off-plan transactions was $30 million more than the $4.4 billion recorded in February 2022, reflecting the highest number and value of off-plan sales in any February in the past decade.
Overall, the average price of a flat increased by 11.2% to a value of A$1,211 per square foot and an average annual rental asking price of A$99,737. The average price of a villa increased by 13.6% to a value of AED 1,432 per square foot and an average annual rental asking price of AED 295,436.
The most searched for flat areas included Dubai Marina, Downtown Dubai, Business Bay, Palm Jumeirah and Jumeirah Village Circle, while the most desired areas for villas and row houses were Dubai Hills, Palm Jumeirah and Arabian Ranches.
Madhav Dhar, co-founder of ZāZEN Real Estate, and Chief Operating Officer, said." The UAE's real estate sector is driven by expatriates who want to stay in the country for the long term. Data shows that in February, 41 per cent were looking for one-bedroom units and 33 per cent were looking for two-bedroom units. We saw a similar trend in our flagship project ZāZEN One, which was launched last year and sold out within six months, as well as our recent project ZāZEN Gardens in Al Furjan, which is located near the Gardens metro and has been well received."
Off-plan sales for ZāZEN Properties' latest project, ZāZEN Gardens, kicked off towards the tail end of 2022. Located near The Gardens MRT station, it is the first LEED Gold certified development to have sold over 60% of its units since its launch in mid-December 2022. Delivery is scheduled for April 2024, by which time 470 metric tonnes of annual carbon emissions reduction will have been achieved.