Dubai’s Real Estate Sales Fall for First Time in 2023
Dubai real estate sales fell for the first time in 2023, since December 2022, according to a new report by Allsopp & Allsopp. Compared to March 2023, the Dubai property market dropped by 33 per cent in total sales transactions and also saw an 18.3 per cent decrease in sales value during April.
The dip was due to “several external factors,” such as reduced work hours, and the Ramadan, Eid and Easter holidays, which led to fewer new properties coming to the market, followed by a drop in property sales viewings and fewer new sales transactions by the Dubai Land Department (DLD), the Allsopp & Allsopp Dubai Real Estate Market Snapshot for April 2023 said.
The real estate company also clarified that is a “common trend” that is seen during the holidays. However, the report added that early May data “shows a swift return” to Q1 2023 sales levels, the report said. Sales transactions in April were split between off-plan sales (52 per cent) and secondary sales (48 per cent), the report said, adding secondary sales latter accounted for 70 per cent of the total sales value.
In addition, villas and townhouses constituted 17 per cent of total sales. The report said that this is a figure that could “rapidly rise should more secondary units enter the market for sale.” The ‘Others’ category, which includes commercial properties and land plots, accounted for only 8 per cent of sales transactions.
Due to the decrease in monthly sales, mortgage transactions declined by 36 per cent to 2,413. However, there was a significant year-on-year increase of 40.7 per cent in the total mortgage value, reaching AED 10.8 billion.
Cash buyers continue to be active in the luxury market, with the highest Dubai property sales ranging from AED 130-150 million. The demand for high-end residences remains strong, attracting global investors and indicating a promising second quarter, the report noted, adding that the Dubai Property Market is in “healthy shape, with strong underlying growth fundamentals.”
The consistent leadership and ongoing infrastructure projects in the city contribute to confidence among both local and international investors, the report said.
