Dubai's real estate market sees a 25% year-on-year increase with AED 33.7 billion in transactions through August 2023.

Property Finder, a property portal in the MENA region, has revealed the key trends that will shape Dubais booming property market in August 2023. According to the latest data, 11,818 property transactions were completed in the month, an increase of 25% in volume compared to 9,450 in August 2022

Transaction value saw a sharp increase of 43% compared to the same month last year, reaching AED 33.7 billion. This marks by far the highest volume and value of transactions for the month of August in ten years. The market broadly followed last months trends in real estate preferences for both homeowners and renters

Cherif Sleiman, chief revenue officer at Property Finder, said: “In August 2023, Dubais real estate sector continued its steep year-on-year growth trajectory. We are pleased with the continued momentum in growing investor interest, with the market remaining strong through the holiday months and the off-plan segment witnessing an unprecedented rise. As home seekers, we hope to offer you the best of verified listings, all in one place with advanced tools and features to support your home search.

According to Property Finder data from August 2023, 59% of property buyers were looking for an apartment, while 41% were interested in villas/townhouses. Of the renters, 81% were looking for apartments, while 19% were interested in villas. The most sought after apartment size for purchase was two bedrooms, accounting for 34%, closely followed by one bedroom apartments at 33%

About 63.9% of people searching for apartments preferred furnished properties, while 34.5% searched for unfurnished properties. Of renters who can afford to rent a villa or townhouse, 54% preferred unfurnished properties, while 45% preferred furnished properties

About 36% of renters were looking for one-bedroom apartments last month, while 31% expressed a preference for two-bedroom apartments and 21% were looking for studios. Among villas/townhouses, three-bedroom apartments enjoyed the most popularity at 43%, while 35% of renters were looking for options with four bedrooms or more.

The off-plan segment played an even bigger role in the rebound in Dubais property market last month, jumping to 58% of total sales transactions and 50% of total transaction value. The volume of sales and purchases of off-plan properties increased by 63% year-on-year, with 6,837 transactions recorded, compared to 4,189 in August 2022. This increase was reflected in the value of off-plan properties, which increased almost 103% to 17 thousand million dirhams. and easily exceeds the AED 8,261 million recorded in August 2022.

Ten areas contributed almost 65.3% of the total sales value and 53% of the total off-plan market transactions. These include perennial favorites Business Bay, Dubai Harbour, Dubai Creek Harbour, Jumeirah Lakes Towers and Jumeirah Village Circle, as well as newcomers Sobha Heartland, Al Yufrah 1, Arjan, Jumeirah Village Triangle and Madinat Al Mataar.

The existing real estate segment saw another year-on-year increase in value in August, recording notable growth of approximately 11% year-on-year to AED 16.9 billion, compared to AED 15.3 billion in August 2022. Palm Jumeirah, Burj Khalifa, Emirates Living, Dubai Marina, Al Hebiah Fifth, Palm Deira, Arjan, Jumeirah Village Circle, Business Bay and Dubai Hills contributed to more than 40% of sales value and 34% of volume.

According to Property Finder's own data, the list of top areas to search for apartments in August 2023 has remained unchanged in recent months and includes Dubai Marina, Downtown Dubai, Jumeirah Village Circle, Business Bay and Palm Jumeirah

Similarly, Dubai Hills Estate, Palm Jumeirah, Arabian Ranches, DAMAC Hills (Akoya by DAMAC) and Al Furjan retained their places among the most sought-after areas for villa/townhouse seekers.