The curtain is closing on what has been a record-breaking year for Dubai’s property market, according to a report Monday from Property Finder.
In the year to November, there were 88,028 home sales recorded in the emirate, a sizable 46% jump from the 60,258 transactions logged in 2021, and 38% above the previous market peak of 63,806 sales seen in 2013, the property portal said.
Collectively, those transactions were worth more than AED 240 billion (US$65.35 billion), a 61% increase over 2021.
The number of deals was driven by a hearty appetite for off-plan homes, the value of which increased by 86% over the last year, the report said.
Those off-plan properties contributed to 44% of the total transactions this year compared to 40% in 2021. They reached a collective value of AED 83 billion, or 35% of the total value of transactions in 2022, up from 30% last year.
In a twist to the trend that emerged across numerous markets during the peak of the pandemic, apartments were the property of choice among Dubai’s buyers this year. Apartments accounted for 85% of Dubai’s transitions in 2022, with villas and townhouses making up the remaining 15%, Property Finder said.
When searching for apartments in Dubai, a majority of potential buyers were searching for one-bedroom units, which accounted for 34% of home searches on Property Finder, according to the firm. Two-bedroom units were the next most-popular flat type, making up 31% of searches.
Dubai’s real estate market has gone from strength to strength this year, driven by a number of factors, including visa reforms, its comparable affordability compared to other global cities and the security of its property as an investment.
Its high-end home market is set to lead the world in property price appreciation in 2023, with gains of 13.5% in the cards, according to a recent report from Knight Frank.