Arab News: 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.
https://www.arabnews.com/node/2339316/business-economy
