Unique Properties, one of Dubai's leading real estate agencies, noted that Dubai's real estate sector has once again seen strong growth, with recent figures showing a 78% increase in sales in May 2023 compared to the same period a year ago; 11,700 real estate transactions were recorded last month, almost doubling the 6,587 sales in May 2022.
This strong performance follows a recent analysis that suggests the emirate's real estate will reach an estimated Dh300 billion in sales by the end of 2023. Various factors have contributed to this forecast, including the increasing influx of High Net Worth Individuals (HNWIs) and payment flexibility, particularly through the off-plan market, which has witnessed a continued supply of units for delivery.
Rising interest in branded residential units in the Dubai off-plan market has been the catalyst for this growth. The growing high net worth population in the UAE has contributed to the rise in demand for such projects in recent months, which has driven the total sales price during this period. Last month saw the sale of several branded residential properties, including a Dhs26 million apartment by Six Senses in the Palm Jumeirah, further proving that Dubai will always be an ideal investment option for buyers and its long-term value is clear.
The off-plan segment continued to be a catalyst for growth in the Dubai real estate sector during the first half of the year and is ideal for investors to focus on due to its strong contributing factors such as affordability, convenient payment plans and higher capital gains. As we approach the second half of 2023, units for sale on the off-plan market will continue to be a key reason behind the boom in the sector and a key advantage for developers to take advantage of by continually launching new projects to meet the market's demand for affordable and quality space.
Arash Jalili, Founder and CEO of Unique Properties, commented: "After a historic 2022 for the UAE real estate sector, where we witnessed total sales of Dh261 billion, a 75% increase from the Dh149 billion recorded in 2021, the country has been able to maintain its momentum and continue to grow. Shortage of supply and strong inflows from Ultra High Net Worth Individuals (UHNWIs) are the main reasons for the tremendous price growth in prime residential areas such as Palm Jumeirah, Emirates Hills and Jumeirah Bay Island.
Whether it is HNWIs seeking to maximize their investments or expatriates seeking a high quality of life balance, the UAE offers a myriad of political and economic factors to meet these needs."
High-end residential prices in Dubai are also expected to continue to soar in 2023, rising to 7.9% from 6% this year. Despite this jump being predicted to be the highest in the world, premium properties in Dubai are still 80% cheaper than other major cities around the world.Unique Properties' extensive market knowledge is guiding several transactions in the off-plan segment of Dubai residences; the full-service, award-winning agency works with an international team of experts to facilitate resale properties, sales and commercial and leasing transactions.
