A significant international real estate services provider’s survey revealed that 11,600 villas and 46,100 apartments were sold during the first half of 2023.
The residential market in Dubai is expected to see its busiest period this year thanks to a spectacular 44 percent growth in half-year sales, which totaled 57,700 units, including both villas and apartments.
According to a survey done by the international real estate services company Savills, the first half of 2023 saw the biggest half-yearly transaction volume ever with 46,100 flats and 11,600 villas sold. The current period exhibits an astounding increase in activity levels of 209 percent over the five-year average.
However, according to the Dubai Land Department, the first half of 2023 saw the highest-ever semi-annual sales for Dubai’s entire real estate sector, which includes both residential and commercial properties, with a total of 60,440 sales transactions valued at Dh177.3 billion.
Although it’s too early to make a thorough assessment of market activity during the traditionally slower summer months, Swapnil Pillai, Associate Director of Middle East Research at Savills noted that early signs point to a potential continuation of healthy market activity. Apartment units made up the majority of the 28,400 total units absorbed in the city during Q2, showing a 33% yearly rise.
According to Savills’ analysis, the off-plan market continues to experience robust activity, accounting for over 53% of all units sold. This rise in off-plan purchases reflects buyers’ preferences to put off committing to higher interest rates in the current financial climate. It also denotes an increase in the number of new project launches, which rose to 27,900 units in the first half of 2023 from 24,900 units in the entire year 2022.
According to JLL’s Q2 Market overview report, off-plan residential sales in Dubai increased in the second quarter of 2023 by 30% in volume and 38% in value over the same period last year. Off-plan transactions in Abu Dhabi increased in value from Dh1.8 billion to Dh3.8 billion, more than doubling. Investors notably targeted studios and 1BR units in places like JVC, Dubailand, and MBR City in Dubai, where the bulk (57%) of transactions in this category took place.
According to a Kamco Invest poll, the value of property sale transactions across the GCC increased by 9.9% to $90.7 billion in the first half of 2023 over the same period last year, largely due to the phenomenal growth of the Dubai real estate market. Dubai’s real estate sales made up 54% of the overall value of transactions in the region, which helped to counterbalance the fall in other important markets including Saudi Arabia, Qatar, and Kuwait in the first half.
While apartments accounted for the majority of off-plan transactions, villa and townhouse buildings were favoured in the ready category, according to the Savills survey. During H1, ready units accounted for 67% of all transactions involving villas and townhouses. Al Furjan, Dubai Hills Estate, and Damac Hills 2 were popular places to find pre-built villa units.
Source: Khaleej Times