Arab News, Tuesday, Jul 18, 2023 | Zul Hijjah 30, 1444
Dubai’s real estate transactions increase 37% in Q2: report
Emirates:
Dubai’s real estate sector has continued to show strong growth, with
transactions increasing by 37 percent in the second quarter of 2023, compared to
the same period last year, according to the latest Dubai Land Department data
published by Better Homes.
The report indicated that transactions reached
27,215 in the second quarter, with the total value of properties sold touching
69.8 billion dirhams ($19 billion).
In terms of property type, apartment transactions
increased by 57 percent in the second quarter of 2023 compared to the same
period last year, while villa and townhouse transactions decreased by 9
percent.
Due to a decrease in off-plan villa transactions,
the total value of townhouse and villa properties sold decreased by 10 percent
quarter on quarter. In comparison, apartments increased by 5 percent in the same
period.
Dubai Production City recorded the highest growth
in apartment prices, up 23 percent quarter on quarter, followed by Living
Legends and Al-Habtoor City, which increased by 21 and 13 percent,
respectively.
Jumeirah Islands saw the fastest growth in villa
prices, up 13 percent quarter on quarter and 32 percent year on year.
“Demand for real estate remains strong, with
Betterhomes witnessing an 82 percent increase in buyer leads year-on-year. The
proportion of end-users buying real estate grew to 40 percent, with concerns
around rising rents continuing to push renters into the sales market,” the
report stated.
A large number of new real estate projects have
been announced in the city, with over 34,000 units launched so far this year,
the data showed.
For luxury properties, transactions were up 3
percent on a quarterly basis and 50 percent year on year.
As the report states, Dubai’s rental market
struggles “given the rise in rental prices over the last 18 months, we have
increasingly seen tenants choosing to renew their contracts. This has resulted
in a 29 percent drop in leasing transactions at Betterhomes compared to Q2
2022.”
“Supply in the secondary market also remains
constrained, with Betterhomes seeing 4 percent fewer new listings than in Q2
2022,” the report added.