Dubai’s real estate sector kicked off 2023 with a flourish, recording more than 128.5 per cent year-on-year jump to 9,800 in sales transactions compared to 5,739 a year ago.

Data provided by Property Finder, a leading regional property portal, shows that the value of transactions in the first month recorded a surge of 178 per cent to over Dh28 billion.

“In terms of value, the transactions for existing properties witnessed an increase of around 42 per cent YoY, reaching over Dh16 billion compared to Dh11.4 billion in January 2022, recording the highest volume and value for the month in a decade,” said the portal.

Scott Bond, UAE country manager at Property Finder, said the new year has definitely been off to a great start, with continued momentum from last year and heightened resilience for Dubai’s property sector. “Led by a steady demand for housing and a rising inclination towards ownership, the coming months seem to behold a great spike in property investments. With evolving consumer preferences and record Y-o-Y success this January, we continue to behold a positive outlook for Dubai’s multi-faceted property sector, as a trusted go-to place marketplace for our customers.”

According to data released by the real estate consulting firm ValuStrat, 2023 is forecast to see mainstream citywide prices increase between 7.0 per cent and 10 per cent on average. “However, competition from off-plan launches and higher mortgage interest rates are expected to put downward pressure on the secondary market. Residential rent rises are predicted to stabilise by end of 2023,” ValuStrat said.

“The fourth quarter of 2022 crowned a bumper year for Dubai’s real estate market. Record sales transactions, off-plan volumes surpassing ready homes, prime villa capital values exceeding 2014 peaks, and rents rising at the highest rate.

2022 was a momentous year in the Dubai real estate market – recording the highest volume & value of property sales ever,” the real estate consultancy said.

Property Finder’s data throws light on a significant evolution in property preferences for both owners and tenants. As per the findings, 59 per cent of people who have the desire to own property in Dubai are looking for an apartment, while 41 per cent are interested in villas/townhouses. In the rental segment, 80 per cent of tenants have been choosing apartments and 20 per cent are looking for villas/townhouses.

While furnished properties in Dubai acquire 46 per cent of the market preferences, 54 per cent of the demand remains for unfurnished units, 66 per cent of renters are looking for furnished units and 34 per cent are inclined towards unfurnished units. Some 41 per cent of the market demand is for one-bedroom units followed by two-bedroom units. In contrast, 54 per cent of renters are seeking one-bedroom units, followed by 29 per cent searching for two-bedroom units, said the report.

In January 2023, both existing and off-plan transactions recorded the highest performance. In terms of volume, the existing (secondary/ready) transactions recorded around 56 per cent YoY increase by registering more than 4,800 transactions.

Off-plan transactions witnessed a remarkable performance, with a 90 per cent YoY increase recording over 5,000 transactions, compared to 3,086 in January 2022; as well as an increase of 130 per cent in value worth more than Dh12.1 billion, as opposed to Dh5.3 billion during the same time last year. This was recorded as the highest volume and value for off-plan transactions for the month of January over the last decade, said the portal.

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