Dubai real estate sales soar, revenue jumps 46% in first half of 2023

The Dubai real estate sector has beaten talks of a possible slowdown hands down in the near-first year period of 2023, with the residential property market raking up close to $28 billion (AED93.18 billion) in sales revenue from January till June 7, clocking a whopping 46.71 percent jump from $17.29 billion (AED63.51 billion) during the entire half year period of last year.

In volume terms, the first half of this year till June first week saw total sales of 46,835 units, compared to 34,627 units in the full half-year period of 2022, posting a spike of 35.25 percent, data compiled by Asette, the Dubai-based AI-driven proptech platform showed.

The commercial real estate sector in the city also posted a robust growth rate in the near-first half of 2023 with close to 30 percent jump in value terms to reach AED2.86 billion from AED2.21 billion during the January-June end period of last year.

In volume terms, the commercial sector registered sales of 1,681 units during January-June 7, 2023 as against 1,495 units during the half-year period of last year.

“The continued market growth is a clear sign that Dubai remains a desirable market for property investors [from around the world], Leena Vesterinen, CEO and Founder of Asette.

“The stable economy, generous visa policies and high quality of life [in the UAE] are just some of the reasons that increasingly attract both residential and global investors,” she said.

Vesterinen said the ever-evolving infrastructure of Dubai further contributes to appreciating ROI (return on investment) and rental yields, adding to the attractiveness of property investments in the city.

Dubai real estate booms in May

In the residential real estate sector, May saw the highest growth rate at over 102 percent over the same year-ago period at AED22.74 billion, followed by January at 98 percent (AED17.22 billion).

April registered the slowest growth rate at 29.97 percent (AED13.38 billion). The relatively slower uptick in sales in April was because of the higher base effect in the corresponding month of 2022, while the higher growth rates in the first two months of this year were due to the lower sales figures in the corresponding months of last year.

Commercial realty also puts up strong show

In the commercial real estate sector also, May posted the highest growth rate at 118 percent to hit AED644.61 million from sales of 412 units (192 units in May, 2022), while February saw the slowest growth rate at just 1.64 percent (AED358.48 million) from sale of 261 units.

Vesterinen said the Asette platform has been seeing entry of a new segment of first-time buyers in the Dubai residential property market in recent months, attracted by property prices, both in off-plan and secondary property markets, “which are still significantly lower in prime locations compared to other popular cities such as London or New York City”.