Property Finder, the leading property portal in the MENA region, has revealed key trends dominating Dubai’s consistently flourishing property market in June 2023. According to the latest data, the month saw 10,419 real estate transactions, recording a 17.78% increase in volume compared to 8,846 in June 2022.
The value of the transactions witnessed a surge of 34.1% compared to the same month last year, reaching AED 30.41 billion. This marks the highest transaction volume and value for the month of June in a decade.
The market broadly followed the previous month’s trends in property preferences for owners and tenants alike. According to Property Finder’s data for June 2023, 57.5% of property buyers were looking for an apartment, while 42.5% were interested in villas/townhouses. The most commonly searched apartment size for purchase was two-bedroom, accounting for 34.1%, closely followed by one-bedroom apartments at 33.4%.
Meanwhile, in the rental market, 78.5% of tenants were searching for apartments, and 21.5% were looking for villas or townhouses. Around 61.8% of those seeking apartments favored furnished properties, while 34.2% were searching for unfurnished options. Among the tenants who can afford to rent a villa or townhouse, 54.5% preferred unfurnished units, while 42.1% favored furnished options.
Around 35.1% of tenants were looking for one-bedroom units last month, while 31.1% expressed a preference for two-bedroom apartments, and 22% were searching for studios. Among villas/townhouses, three-bedroom units enjoyed the highest popularity at 43.4%, while 36.1% of tenants were searching for four-bedroom or larger options.
The off-plan segment played a significant role in driving the uptick in Dubai’s real estate market last month, accounting for 49.6% of the total number of sales transactions and 41.5% of total transaction value. The volume of off-plan property sales rose by 46.6% YoY, with more than 5,165 transactions recorded, compared to 3,523 in June 2022. This increase was reflected in the value of off-plan properties, which surged by almost 80.26% to more than AED 12.6 billion, surpassing the AED 7.007 billion recorded in June 2022.
Ten areas contributed to almost 68% of the total sales value and 54% of the total number of transactions in the off-plan market. These included perennial favorites Dubai Marina, Palm Jumeirah, Dubai Harbour, Dubai Creek Harbour, Dubai Hills, Burj Khalifa, Jumeirah Lakes Towers, and Jumeirah Village Circle, as well as newcomers Umm Suqeim Third and Dubai Design District.
In contrast to the previous month, existing property transactions experienced a minor YoY drop in volume at approximately 1.3%, with around 5,254 transactions recorded. Meanwhile, their value continued to grow at around 13.4% YoY, reaching AED 17.8 billion, compared to AED 15.7 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 to more than 44.5% of the sales value and 27% of the volume.
According to Property Finder’s proprietary data, the top areas searched to own apartments in June 2023 were Dubai Marina, Downtown Dubai, Business Bay, Jumeirah Village Circle, and Palm Jumeirah. Dubai Hills Estate, Palm Jumeirah, Arabian Ranches, DAMAC Hills (Akoya by DAMAC), and Al Furjan were the most desired areas for those looking to own villas/townhouses.
Scott Bond, UAE Country Manager at Property Finder, said:“In June 2023, Dubai’s booming property sector once again marked a record YOY rise in both volume and value. With off-plan transactions continuing to surge, the existing properties market reported a slight dip in volume, offset by an increase in value. While overall trends mostly remained the same, we have witnessed variations in home seeker preferences in the off-plan as well as the existing properties segment. It will be interesting to see how the dynamic evolves during the upcoming summer months.”
