Real estate transactions witnessed an outstanding increase by recording over $7.3 billion in February 2023
9,020 sales transactions were issued last month compared to 6,310 in February 2022
4,500 transactions were recorded in the off-plan market compared to 2,533 during the same period last year
Dubai, UAE – 22 March 2023: Unique Properties, a leading full-service real estate investment consultation agency headquartered in Dubai, UAE, has shared its insights on the recent real estate surge. A report by Property Finder, a leading real estate portal covering the sales and rental marketplace, found that the off-plan market was a driving force; sales in this segment increased by 77.8% YoY (Year on Year) to reach more than 4,500 transactions, compared to 2,533 transactions in February 2022.
In February 2023, 9,020 sales transactions were logged to record 43% YoY growth when compared to the same period last month. This resulted in an overwhelming increase of $7.3 billion, which is 65% higher than last year’s results. The off-plan properties value in particular increased by 154% to record its highest volume and value during February in a decade. Unique Properties has observed several trends in the sector and believes that this strong surge in the industry is a long-term trend which will continue to increase throughout the year for several different reasons.
Off-plan sales are experiencing phenomenal growth of nearly 55% in overall volume, up from 44% the previous year, and recording 90,811 property transactions in 2022 to top the previously recorded high of 81,182 transactions in 2009. According to multiple sources, the UAE’s real estate sector is projected to grow by 8% annually through 2027 and the off-plan segment is a key driver of this expected growth. According to multiple sources, this will be an additional factor for the country’s real estate growth. Additionally, recent moves by developers to increase flexibility around payment plans for off-plan projects have effectively incentivized real estate investment by making purchases more affordable and practical when compared to properties in already constructed developments.
Arash Jalili, Founder and Chief Executive Officer of Unique Properties, commented: “Dubai’s stature as one of the top city destinations for expatriates to visit and migrate to, combined with initiatives from HH Sheikh Mohammed bin Rashid Al Maktoum like D33 which seeks to attract over AED 700 billion in Foreign Direct Investment (FDI), are key reasons why we are witnessing a continued increase in real estate demand for both ownership and rent. The increase in off-plan properties will accordingly be a major catalyst behind the market’s upward trajectory as real estate developers look to maintain their push on new development projects throughout the year. with investors looking to buy off-plan from a multitude of benefits, including lower prices and increased payment options to higher capital gains, as well as specific property laws that have been implemented to protect buyers, we can only expect this overall demand to maintain its strong momentum and keep thriving for the unforeseen future.”
With more than 88% of the UAE made up of expats, and this steady influx being constant for the country, villas, apartments, and other housing forms will retain value to remain solid investments; whether the purpose of purchase revolves around holding the property for personal use, renting it, or selling it to make a profit down the road. Unique Properties’ extensive market knowledge is steering several transactions across Dubai’s residential off-plan segment; the full-service award-winning agency facilitates resale property, sales and commercial, and rental transactions with international expert teams.
