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In May, the Dubai real estate market experienced a significant increase in value, with transactions rising by 87% compared to the previous year. The total value of real estate transactions reached Dh34 billion ($9.3 billion) in May, up from Dh26.5 billion in the same period of 2022, according to research conducted by Property Finder, a real estate listings website.
The number of transactions also saw a substantial growth of 78% year on year, with 11,700 deals recorded in May 2023 compared to 6,587 in May 2022. Property Finder data reveals that off-plan agreements played a significant role in driving the expansion of Dubai's real estate market in May, accounting for 49% of all sales transaction volume and 43% of the total value. The number of off-plan property sales surged by 110% year on year, reaching over 5,700 transactions, compared to 2,716 transactions the previous year. The value of off-plan properties also saw a significant increase of approximately 136% to more than Dh14.5 billion, compared to Dh6.15 billion recorded in April 2022.
Dubai's strong economic growth is a contributing factor to the robust performance of its real estate market. The emirate's GDP grew by 4.6% annually in the first nine months of 2022, as reported by the emirate’s statistics bureau. S&P Global Ratings predicts that Dubai's economy will expand by 3% in 2023 and maintain its current growth rate for the following two to three years. Government initiatives, rising oil prices, and other measures to boost the economy have also contributed to the recovery and continued growth of the UAE real estate market following the pandemic-related downturn. According to Dubai Media Office, the number of transactions increased by 44.7% year on year, while the value of transactions rose by 76.5% annually, as stated in January.
This positive trend in the Dubai real estate market has been consistent throughout the year, with April witnessing a 53% increase in deal value and a 45% increase in transaction volume. Secondary market transactions saw a yearly growth rate of over 55%, totalling more than 6,000 transactions. The value of these trades increased by 62% to Dh19.5 billion in May 2022. Popular areas for apartment purchases in May included Dubai Marina, Downtown Dubai, Business Bay, Palm Jumeirah, and Jumeirah Village Circle. According to a survey by Property Finder, approximately 77.7% of tenants opted for flats in the rental market, while 22.3% chose villas and townhouses.
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