Dubai's property market continued its upward trend with a 43 per cent surge in sales transactions in February due to high demand from foreign investors and end users, according to a report.
The latest figures released by Property Finder show that property transactions climbed to 9,020 last month compared to 6,310 in February 2022, with sales revenue exceeding Dh26.7 billion in February this year - an increase of 65 per cent. The emirate recorded 9,800 sales transactions in January 2023.
Existing (second/existing home) transactions recorded a year-on-year increase of around 20 per cent, with over 4,500 transactions registered. The number of transactions for off-plan properties also surged by 77.8%, reaching more than 4,500 last month.
In terms of value, transactions of existing properties witnessed an increase of around 32 per cent to Dh15.6 billion, compared to Dh11.8 billion in February 2022, recording the highest volume and value of transactions in February in a decade.
Dubai Marina, Downtown Dubai, Business Bay, Palm Jumeirah and Jumeirah Village Circle remain the most sought-after areas for flats in February 2023, while Dubai Hills, Palm Jumeirah, Arabian Ranches and Mohammed Bin Rashid City are the most desirable areas for owning a rental villa/row house.
Ata Shobeiry, CEO of Zoom Property, said the Dubai property market is poised for another strong year despite the challenges posed by inflation and oversupply.
In another positive development, CBRE expects a positive outlook for the real estate sector across the Middle East in 2023, as rising oil prices and firm economic growth are expected to support strong levels of user and investment activity.
In releasing its Middle East Real Estate Market Outlook 2023, the real estate consultancy said the GCC economies will continue to record relatively strong growth rates in 2023.
Taimur Khan, head of research at CBRE's Mena in Dubai, said the GCC economies and the real estate market in general are expected to continue to see relatively strong levels of performance in the year ahead, despite the weaker global economic backdrop.
Data from Property Finder shows a significant shift in property preferences among both owners and tenants, with 59.4 per cent of those interested in owning a property looking for flats, while 40.6 per cent are interested in villas/rowhouses.
Furthermore, in the rental sector, 80% of tenants have been looking for flats and 20% for villas/townhouses.
Around 65% of tenants looking for a long-term flat prefer a furnished property, while 33% are looking for an unfurnished flat. Unlike tenants who can afford to rent a villa/townhouse, around 55% are looking for unfurnished units, while 44% are looking for furnished villas/townhouses.
The latest data also indicates that around 41% of tenants are looking for one-bedroom units in February 2023, followed by two-bedroom units at 33% of tenant preference, while 20% are looking for studios. For villas/townhouses, two-bedroom units were the most searched for villa rentals at 36.4 per cent, followed by three-bedroom villas/townhouses at 31 per cent.
"With evolving consumer preferences and record year-on-year success in February this year, we continue to be bullish on Dubai's multi-faceted real estate sector as a trusted go-to market for our clients," said Bond.
Off-plan properties remain attractive to investors in February 2023, as both existing and off-plan transactions recorded top results. Last month, off-plan transactions secured 50% of total sales transactions and 41% of the total value of sales transactions.
The number of off-plan property transactions increased by 77.8% to over 4,500 last month, compared to 2,533 transactions in February 2022. This was also reflected in the value of off-plan properties, which increased by 154% to a value of over Dhs11 billion compared to Dhs4.4 billion in February 2022, the highest volume and value of off-plan transactions in a decade.
In terms of volume, existing (second-hand/existing) transactions recorded a year-on-year increase of approximately 20%, with over 4,500 transactions registered. In terms of value, existing property transactions witnessed a growth of approximately 32% to approximately Dhs15.6 billion, compared to Dhs11.8 billion in February 2022, the highest existing transaction volume and value in a decade.
