Property Finder, the leading real estate portal for the East and North Africa region, reveals the key trends that dominated Dubai's continuing booming real estate market in June 2023. According to the latest data, there were 10,419 real estate transactions during the month, representing a 17.78% increase in transactions compared to 8,846 in June 2022.
The value of transactions surged by 34.1% to reach Dh30.41 billion compared to the same month last year. This marks the highest volume and value of transactions in June in a decade.
The market largely followed the trend of owner and tenant preference for properties in the previous month. According to Property Finder June 2023, 57.5% of property buyers are looking for apartments, while 42.5% are interested in villas/rowhouses. The most commonly searched for apartment size to purchase is a two-bedroom at 34.1%, followed closely by a one-bedroom apartment at 33.4%.
Meanwhile, in the rental market, 78.5% of renters are looking for apartments and 21.5% are looking for villas or townhouses. About 61.8% prefer furnished apartments, while 34.2% are looking for unfurnished options. Among tenants who can afford to rent a villa or townhouse, 54.5 percent prefer unfurnished units, while 42.1 percent prefer furnished options.
Last month, about 35.1 percent of tenants were looking for one-bedroom units, while 31.1 percent said they preferred two-bedroom apartments and 22 percent were looking for studios. Among villas/townhouses, 43.4 percent preferred three-bedroom units, while 36.1 percent of tenants were looking for four-bedroom or larger options.
The off-plan segment played a significant role in driving the Dubai real estate market upwards last month, accounting for 49.6% of total sales transactions and 41.5% of the total transaction value. Sales of off-plan properties increased by 46.6% year-on-year, recording over 5,165 transactions compared to 3,523 in June 2022. This growth was reflected in the value of off-plan properties, which surged by nearly 80.26% to over Dh12.6 billion, surpassing the Dh7.007 billion recorded in June 2022.
Ten regions contributed nearly 68% of the total sales value and 54% of the total off-plan market transactions. These regions include the perennially popular Dubai Marina, Palm Jumeirah, Dubai Harbour, Dubai Creek Harbour, Dubai Hills, Burj Khalifa, Jumeirah Lake Towers and Jumeirah Village Circle, as well as newcomers Umm Suqeim Zone 3 and Dubai Design District.
Compared to the previous month, the number of existing property transactions declined slightly year-on-year to approximately 1.3%, with some 5,254 transactions recorded. Meanwhile, their value continued to grow by approximately 13.4% year-on-year to Dh17.8 billion compared to Dh15.7 billion in June 2022. Al Kheeran, Palm Jumeirah, Burj Khalifa, Wadi Al Safa 3, Dubai Marina, Emirates Living, Al Wasl. Jumeirah Beach Residence, Business Bay, and Dubai Hills contributed over 44.5% of the sales value and 27% of the sales volume.
According to Property Finder's proprietary data, the most searched areas with apartments in June 2023 were Dubai Marina, Downtown Dubai, Business Bay, Jumeirah Village Circle, and The Palm Jumeirah. Dubai Hills, Palm Jumeirah, Arabian Ranches, DAMAC Hills (Akoya by DAMAC) and Al Furjan are the most desired areas for those looking to own a villa/townhouse.
Scott Bond, UAE Country Manager at Property Finder, said: "June 2023 saw another record year-on-year growth in volume and value for Dubai's booming real estate sector. With the continued surge in off-plan transactions, the existing property market saw a slight decline in volume, offset by an increase in value. While the overall trend remains largely unchanged, we are witnessing a shift in preference among job seekers in both the off-plan and existing property sectors. It will be interesting to see how this dynamic evolves over the upcoming summer months."
