• | 2:00 pm

Dubai’s residential sector set for record activity as property transactions soar

Villas and townhouses are said to be the most in-demand types of developments in the emirate.

Dubai’s residential sector set for record activity as property transactions soar
[Source photo: Anvita Gupta/Fast Company Middle East]

Now accepting applications for Fast Company Middle East’s Most Innovative Companies. Click here to apply.

With property transactions reaching their highest half-yearly volume ever, Dubai’s residential sector is poised to experience its most active year on record, according to a recent report.

In its latest report, global real estate service provider Savills unveiled that transactions surged by 44% in the first half of 2023, reaching 57,700 compared to the previous year.

For context, the average number of units sold during the first six months of each year between 2013 and 2018 was around 18,700. Compared to this five-year average, activity levels have surged by 209% in the current period. During this period, the split was 46,100 apartments and 11,600 villas sold, as indicated by the report.

“Historically, the summer months in the UAE have been slow as many residents travel during the school break,” said Swapnil Pillai, Associate Director, Middle East Research at Savills.

However, Pillai noted that the trend seems to be changing recently, “As Dubai property continues to find favor among residents and international audiences looking for stability amid an uncertain economic environment.”

“While it is still early to comment on the overall take-up during the usually slow summer period, early indicators suggest that market activity is likely to remain strong,” Pillai said.

According to the report, villas and townhouses have emerged as the most sought-after development type in the emirate, especially among residents transitioning from renting properties to purchasing for their use.

Rent prices in well-established and recognized areas, including employment hubs, retail centers, and supporting infrastructure, have experienced double-digit growth compared to the same period in 2022.

During the review period, developments in Palm Jumeirah saw some of the highest half-yearly price growth. Other high-growth markets included Dubai Marina (14%) and Downtown Dubai (11%). 

While emerging locations like Al Furjan (9%), Arjan (6%), Sports City (8%), and Town Square (5%) also experienced a slight increase in prices, the potential impact of upcoming supply and existing vacancy levels in these areas might limit substantial price growth for the rest of the year.

More Top Stories: