It is reported that Dubai Marina, Downtown Dubai, Business Bay, Jumeirah Village Circle, Palm Jumeirah, Dubai Hills Estate, Arabian Ranches, DAMAC Hills, and Al Furjan became the most investment-attractive areas in Dubai according to the study for Q2 2023.
The above areas saw a significant increase in the number of property transactions, and commissioned real estate sales sustained the momentum. In addition, there has been significant cost growth across the board in both Dubai and Abu Dhabi. Investor confidence, a considerable increase in new projects, and the introduction of innovative developments contributed to a strong Q2 in Abu Dhabi. There were 1,838 off-plan sales transactions, compared to 947 in Q2 2022. This is 71.4% of the total number of transactions, while last year it represented 60.7%. Both for personal residence and investment, the vast majority of buyers still want to own property in Al Reem, Yas, and Saadiyat Islands, Al Raha Beach, and Masdar City.
What’s more, there was a significant year-on-year increase of 94.1% in volume along with a 118% increase in value over the same period. The value of off-plan sales transactions in Abu Dhabi in Q2 2023 accounted for 71.9% of the total value of sales transactions, compared to 58.7% in the same period in 2022, reaching AED 4.704 billion compared to AED 2.157 billion.
735 properties were registered on the existing/ready market in Abu Dhabi, which is a notable increase of 20.1% compared to 612 properties in Q2 2022. This represents about 28.6% of the total number of transactions, while in 2022, the percentage was 39.3%.
In Dubai, the market value of sales transactions reached the highest level ever for a quarter and amounted to AED 90.75 billion, compared to AED 58.96 billion in Q2 of last year. The market value increased by 53.93%. This is due to the strong economic growth and the growing interest of foreigners to the tourism industry, which caused a strong demand for housing.
The value of off-plan real estate sales also hit a record and amounted to AED 35.06 billion in Q2 2023, compared to AED 18.34 billion in Q2 2022, which is an increase of 91.18%. The value of existing/ready sales transactions reached a new high of AED 55.7 billion, up from AED 40.6 billion in 2022, thus showing an increase of 37.11%. This is the highest transaction value ever recorded in a quarter, with a 4.2% increase compared to Q1 2023.
As far as rental contracts are concerned, Q2 of this year saw a year-on-year increase of 6%, with 131,293 contracts registered compared to 123,856 contracts. The most popular areas were Dubai Marina, Downtown Dubai, Business Bay, Jumeirah Village Circle, Palm Jumeirah, Dubai Hills Estate, Arabian Ranches, DAMAC Hills, and Al Furjan.
It is also worth noting that July 2023 witnessed the highest value of sale and purchase transactions for a single month: it amounted to over AED 37.5 billion. This impressive figure represents an incredibly strong 81% year-on-year growth compared to July 2022. It beat the previous market record set in March 2023 by 10%. Moreover, the transaction volume reached 11,000, which is a significant volume and shows a year-on-year increase of 58%.
This surge was primarily driven by existing transactions, which reached an unprecedented record value of transactions, surpassing AED 25 billion. This data reflects an impressive year-on-year growth of approximately 72% and a substantial increase of 17% from the March 2023 market peak, with a total of over 5,800 transactions. The volume of these transactions also increased significantly—by 42% year on year.
What is remarkable is that off-plan transactions played a critical role in maintaining the uptrend in the Dubai real estate market in July. With 47% of total sales transactions and 33% of total transaction value, they have made a significant contribution to the overall market dynamics. The volume of off-plan property sales exhibited an exceptional year-on-year growth of 81%, with more than 5,200 transactions recorded, up from 2,883 in July 2022.