Dubai Real Estate Market Records $8.3bn in Property Deals Last Month

In June 2023, the real estate sector in Dubai saw transactions amounting to $8.3bn, as reported by Property Finder research. This represents a significant increase compared to June 2022, with 10,419 real estate transactions recorded, marking a 17.78% rise in volume. 

The value of these transactions experienced a surge of 34.1% compared to the same month in the previous year. This data represents the highest transaction volume and value for the month of June in the past ten years.

Property preferences in the market remained consistent with the previous month. According to Property Finder's data for June 2023, 57.5% of property buyers were interested in purchasing apartments, while 42.5% were looking for villas or townhouses. The most sought-after apartment sizes for purchase were two-bedroom apartments at 34.1% and one-bedroom apartments at 33.4%.

In the rental market, 78.5% of tenants were searching for apartments, while 21.5% were interested in villas or townhouses. Among those seeking apartments, 61.8% preferred furnished properties, while 34.2% were in search of unfurnished options.

Among tenants who can afford to rent a villa or townhouse, 54.5% preferred unfurnished units, while 42.1% liked furnished options.

Last month, 35.1% of tenants were searching for one-bedroom units. Meanwhile, 31.1% expressed a preference for two-bedroom apartments, and 22% were looking for studios. When it came to villas or townhouses, 43.4% of tenants were interested in three-bedroom units, while 36.1% were searching for four-bedroom or larger options.

The off-plan segment had a significant impact on Dubai's real estate market last month. It accounted for 49.6% of the total number of sales transactions and 41.5% of the total transaction value.

Compared to June 2022, the volume of off-plan property sales increased by 46.6%, with over 5,165 transactions recorded, reflecting this growth.

The value of off-plan properties also saw a substantial surge, rising by almost 80.26% to over $3.4 billion, surpassing $2 billion recorded in June 2022.

Ten specific areas contributed to approximately 68% of the total sales value and 54% of the total number of transactions in the off-plan market.

These included:

Existing property transactions in the recent month saw a slight decrease of about 1.3% compared to the previous year, with around 5,254 recorded transactions. However, their value continued to rise by approximately 13.4% year-on-year, reaching $4.8 billion compared to $4.3 billion in June 2022.

The areas of Al Kheeran, Palm Jumeirah, Burj Khalifa, Wadi Al Safa 3, Dubai Marina, Emirates Living, Al Wasl, Jumeirah Beach Residence, Business Bay, and Dubai Hills accounted for over 44.5% of the sales value and 27% of the total transactions.

According to Property Finder's data, the top areas people searched for to own apartments in June 2023 were Dubai Marina, Downtown Dubai, Business Bay, Jumeirah Village Circle, and Palm Jumeirah. For those interested in owning villas or townhouses, the most desired areas were Dubai Hills Estate, Palm Jumeirah, Arabian Ranches, DAMAC Hills (Akoya by DAMAC), and Al Furjan.