Dubai’s commercial real estate sector also experienced strong growth in H1 2023, with a nearly 30% increase in value, reaching AED2.86 billion.
The Dubai real estate sector has defied talks of a slowdown in the first half of 2023, generating approximately $28 billion (AED93.18 billion) in residential property sales revenue from January to June 7. This marks a remarkable 46.71% jump from the $17.29 billion (AED63.51 billion) recorded during the same period last year.
Data from Asette, the Dubai-based AI-driven proptech platform, reveals that total sales volume reached 46,835 units in the first half of this year until the first week of June, compared to 34,627 units in the entire first half of 2022. This represents a notable spike of 35.25%.
Similarly, the commercial real estate sector in Dubai also demonstrated robust growth in H1 2023, experiencing a close to 30% increase in value, reaching AED2.86 billion compared to AED2.21 billion during the same January to June period last year.
In terms of volume, the commercial sector witnessed sales of 1,681 units from January to June 7, 2023, in contrast to 1,495 units sold during the half-year period of the previous year.
Leena Vesterinen, CEO and Founder of Asette stated that the sustained market growth reflects Dubai’s appeal to property investors worldwide. She attributed this attractiveness to factors such as the stable economy, favorable visa policies, high quality of life in the UAE, and the ongoing development of Dubai’s infrastructure.
May recorded the highest growth rate in the residential real estate sector, surpassing 102% compared to the same period the previous year, reaching AED22.74 billion. January followed closely behind with a 98% growth rate (AED17.22 billion). April, on the other hand, had the slowest growth rate at 29.97% (AED13.38 billion), primarily due to the higher base effect in April 2022, while the significant growth in the first two months of this year can be attributed to lower sales figures in the corresponding months of the previous year.
In the commercial real estate sector, May also exhibited the highest growth rate at 118%, generating AED644.61 million from the sale of 412 units (compared to 192 units in May 2022). February had the slowest growth rate at a mere 1.64% (AED358.48 million) from the sale of 261 units.
Vesterinen noted that the Dubai residential property market has recently seen the entry of a new segment of first-time buyers. These buyers are attracted by comparatively lower property prices in prime locations, both in off-plan and secondary property markets, in comparison to other popular cities like London or New York City.