Dubai’s real estate sector has defied expectations of a slowdown, delivering an outstanding performance in the first half of 2023. Sales revenue in the residential property market skyrocketed to a staggering $28 billion (AED93.18 billion) from January to June 7, marking an impressive 46.71% surge compared to $17.29 billion (AED63.51 billion) during the same period last year.
Data compiled by Asette, a Dubai-based AI-driven proptech platform, reveals that the volume of sales in the residential sector also experienced a significant boost. The first half of this year witnessed a total of 46,835 units sold, reflecting a remarkable 35.25% increase compared to 34,627 units sold in the entire first half of 2022.
The commercial real estate sector in Dubai has also witnessed strong growth, with its value surging by nearly 30% to AED2.86 billion, up from AED2.21 billion during the January to June period last year. In terms of volume, the commercial sector recorded 1,681 units sold from January to June 7, 2023, compared to 1,495 units sold in the same half-year period of 2022.
Leena Vesterinen, CEO and Founder of Asette, emphasised that Dubai’s continuous market growth reaffirms the city’s desirability among property investors worldwide. She cited the stable economy, generous visa policies, and high quality of life in the UAE as key factors attracting both local and global investors. Vesterinen also highlighted the evolving infrastructure of Dubai, contributing to attractive returns on investment (ROI) and rental yields, further enhancing the appeal of property investments in the city.
May emerged as the most booming month for the residential real estate sector, witnessing a growth rate of over 102% year-on-year, totalling AED22.74 billion in sales. January followed closely behind with a 98% growth rate (AED17.22 billion). In contrast, April experienced the slowest growth rate at 29.97% (AED13.38 billion). This was attributed to the higher sales figures recorded in April 2022, while the substantial growth rates in the first two months of 2023 were due to lower sales figures during the corresponding period in the previous year.
The commercial real estate sector also demonstrated a strong performance, with May boasting the highest growth rate at 118%. Sales reached AED644.61 million from 412 units sold (compared to 192 units in May 2022), while February reported the slowest growth rate of just 1.64% (AED358.48 million) from the sale of 261 units.
Vesterinen noted that Asette has observed the entry of a new segment of first-time buyers in Dubai’s residential property market in recent months. These buyers are attracted by property prices, which remain significantly lower in prime locations compared to other popular cities such as London or New York City, both in off-plan and secondary property markets.
Original article reference: Arabian Business.