In a significant boost for Dubai’s real estate sector, 2023 is poised to become the busiest year on record for property transactions. According to the latest report by global real estate services provider Savills, real estate transactions have surged by an impressive 44% compared to the same period last year, totaling a remarkable 57,700 units.
The first half of 2023 witnessed an extraordinary influx of over 57,000 units purchased across Dubai, primarily in the residential sector. This surge reflects a changing trend, as the usually slow summer months have witnessed heightened activity. Dubai’s property market continues to attract residents and international investors seeking stability amid economic uncertainties.
The off-plan market segment has notably driven this growth, constituting nearly 53% of units sold in the first half of the year. Buyers are displaying a preference for off-plan transactions, possibly to navigate high lending rates in the current economic climate. The increase in new project launches, reaching 27,900 units, further supports this trend, marking an upswing from 2022.
While property prices have shown consistent growth, the pace has slightly moderated. The report highlights a shift in growth patterns, with certain locations experiencing a slowdown due to increased handovers and planned supply. However, established areas with limited upcoming supply and lower vacancy rates have maintained relatively steady growth.
Palm Jumeirah, a sought-after residential district, registered one of the highest price growths with a 19% rise compared to the second half of 2022. Other notable areas like Dubai Marina and Downtown Dubai also recorded substantial growth, with unit prices increasing by 14% and 11% respectively.
Emerging locations such as Al Furjan, Sports City, and Town Square exhibited moderate growth rates of 9%, 8%, and 5%. Despite this, upcoming supply and existing vacancy levels may influence their growth potential.
As Dubai’s real estate market experiences these dynamic shifts, the trend of increased transactions, particularly in the off-plan segment, hints at the sector’s resilience and the ongoing attractiveness of Dubai’s property market.
📌 Source: Arabian Business