The property market in Dubai: April 2023
The property boom in Dubai continued last month, with transactions totalling 26.5 billion AED.
Dubai property experts report that there were 8,077 property transactions in April 2023, representing a 17.% increase in volume compared with the 6,898 transactions recorded in April 2022.
The Dubai property market in April 2023: the statistics
Compared with the same month last year, the transaction value rose by 46 %. Both the number and value of transactions are at their highest level for the month of April in ten years.
Data from Property Finder for April 2023 shows that 58.2 % of those looking to buy a home were searching for a flat, whilst 41.8 % were interested in detached houses or townhouses.
The number of investors or first-time buyers looking for flats rose over the month, rising from 55.8 % in April 2022 to 58.2 %. Two-bedroom flats are the most sought-after type of flat among investors, accounting for 35.2 % of searches, followed by one-bedroom flats at 31 %.
3,894 sales off-plan property developments were recorded in April 2023, compared with 2,709 in April 2022, representing a year-on-year increase of 43.7 %.
Off-plan transactions, which accounted for 30.3 % of the value and 48.2 % of the total volume of sales transactions in April to Dubai, have contributed significantly to the market’s upward trend.
Meanwhile, the value of existing property sales has risen significantly, by more than 44 % year-on-year, reaching approximately 18.5 billion AED, compared with 12.8 billion AED in April 2022.
The rental market in April 2023
In the rental market, 78.3 % of tenants were looking for flats, whilst 21.7 % were looking for villas or houses. 34.2% of tenants were looking for unfurnished flats, whilst around 64.1% of those seeking flats for a longer period preferred furnished flats.
Around 56.8% of tenants who can afford a villa or townhouse prefer unfurnished properties, whilst 42.1% are looking for furnished villas or townhouses.
In April 2023, around 33.4 % of tenants were looking for one-bedroom flats, followed by 30.7 % who preferred two-bedroom flats and 23.8 % who preferred studio flats.
For villas and townhouses, 41.6 % of tenants prioritised three-bedroom flats, whilst 36 % were looking for properties with four bedrooms or more.
The neighbourhoods most sought-after by investors in April 2023
In April 2023, the following neighbourhoods remained the most sought-after by investors due to their high returns:
Dubai Marina
Downtown Dubai
Business Bay
Palm Jumeirah
Jumeirah Village Circle.
Investing in Dubai in 2023
Whilst investing in major cities has always been an excellent idea due to low mortgage rates, Dubai stands out because of its unique status. And it is not just because of its favourable tax regime.
Indeed, it is one of the few major cities where new-build properties are still available. Property developers continue to launch new-build projects, enabling foreign investors to invest in new-build properties in Dubai and expect substantial rental income.
At a time characterised by significant inflation and considerable economic uncertainty, investing in property in Dubai in 2023 will enable you to realise better capital gains on your property purchase.
It is possible to achieve a high rental yield by investing in new-build properties that have seen sharp price rises, although investing in older properties is also an option.
The high rents typically charged for new-build homes are a contributing factor. Only high-end buyers are drawn to the city.
Depending on your property plans, investing in flats or villas is a viable option in this Arab emirate. Provided you can secure the right deal, the city’s extensive infrastructure is beneficial for property values, which are on the rise.
Just make sure you pinpoint your location accurately to get the best possible result.
Because it is so easy to find tenants and buyers, flats offer better rental yields, whilst villas offer the potential for impressive capital gains.
Please also note that you can invest as a group in Dubai. This allows you to reduce both the costs and the monthly instalments under the payment plan.
If you’re thinking of investing in property in 2023, please contact our estate agency in Dubai. Our advisers will guide you step by step through your property investment project.
