The real estate market in Dubai experienced a decline in sales in April 2023, marking the first decrease since December 2022. This drop was attributed to external factors such as reduced working hours and the occurrence of holidays like Ramadan, Eid, and Easter, resulting in fewer new properties entering the market. Consequently, there was a decrease in property sales viewings and new sales transactions. However, the report suggests a rapid rebound in sales levels in early May, indicating a positive trend for the second quarter. Cash buyers, particularly in the luxury real estate market, remain active, with robust demand for upscale homes.
According to a recent report from Allsopp & Allsopp, the real estate sales in Dubai experienced a decline in 2023, marking the first decrease since December 2022. In April, the Dubai property market witnessed a significant drop in both the total number of sales transactions (33 percent) and the sales value (18.3 percent) compared to March 2023.
The report attributed this decline to various external factors, including reduced working hours, the occurrence of holidays such as Ramadan, Eid, and Easter, which resulted in fewer new properties entering the market.
Consequently, there was a decrease in property sales viewings and a reduction in new sales transactions facilitated by the Dubai Land Department (DLD), as stated in the Allsopp & Allsopp Dubai Real Estate Market Snapshot for April 2023.
The real estate firm further explained that the occurrence observed during the holidays is a frequently observed pattern. Earlier this month, property deals in the Dubai real estate market reached a total value of AED2 billion. Nevertheless, according to the report, the data from early May indicates a rapid rebound to sales levels comparable to those in the first quarter of 2023.
The report also mentioned that in April, sales transactions were divided between off-plan sales (52 percent) and secondary sales (48 percent), with the latter contributing to 70 percent of the overall sales value.
Furthermore, the report highlighted that villas and townhouses made up 17 percent of the overall sales, and this percentage could increase swiftly if more secondary units become available for sale. Commercial properties and land plots, categorized as ‘Others’, represented only 8 percent of the sales transactions.
As a result of the decline in monthly sales, mortgage transactions saw a decrease of 36 percent, totalling 2,413. However, there was a notable year-on-year growth of 40.7 percent in the total value of mortgages, reaching AED 10.8 billion.
According to the report, cash buyers are still actively involved in the luxury real estate market, with the highest property sales in Dubai falling within the range of AED 130-150 million. The demand for upscale homes remains robust, attracting investors from around the world and suggesting a promising second quarter. The report also emphasized that the Dubai Property Market is in a healthy state, supported by strong underlying growth factors.
The report further stated that the city’s consistent leadership and continuous infrastructure projects play a significant role in instilling confidence among both local and international investors.
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