Dubai, UAE: Dubai’s property sector has witnesses a 78 percent increase in sales volume in May 2023 when compared to the same period one year ago.
About 11,700 real estate transactions were logged last month, an almost double bump from the 6,587 sales that were registered in May 2022.
A recent analysis has suggested real estate in the emirate is estimated to reach AED 300 billion in sales by the end of 2023. Various factors have resulted in this forecast, including an increasing influx of high-net-worth individuals (HNWIs) and flexibility of payments, especially through the off-plan market which has witnessed a consistent supply of units being delivered.
Branded residential units in Dubai’s off-plan sector have seen rising interest and been a catalyst for this growth. The UAE’s growing HNWI population has contributed to this uptick in demand for such projects over recent months, consequently pushing the total price of sales during this period.
Last month saw multiple branded residential properties sold, including an AED 26 million apartment in The Palm Jumeirah by Six Senses.
The off-plan segment has continued to be a catalyst for the growth of Dubai’s real estate sector throughout the first half of the year and an ideal option for investors to look at due to strong contributing factors such as affordability, convenient payment plans, and higher capital gains, among other benefits.
“After the UAE real estate sector’s historic 2022, where we witnessed total sales of AED 261 billion and an increase of 75% from the AED 149 billion that was logged in 2021, the country has been able to maintain its momentum and continue growing,” Arash Jalili, Founder and Chief Executive Officer of Unique Properties said. “Shortage of supply and strong inflows of money from ultra-high-net-worth individuals (UHNWIs) are the prime reasons for the tremendous growth in prices in prime residential districts like Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island.”