Quarter Market Update and Trends

Broad Property Market Update and Trends
 

Overall we saw a significant increase in both the number of transactions, and value when comparing to the same quarter last year*. 
- Quarterly number of sales: 30.2K transactions (+34.8% vs. Q2 2022)
- Quarterly total sales value: AED 91.2 billion (+54.4% vs Q2 2022)
When looking at the gathered search data across this period, interestingly investors showed a preference for two-bedroom apartments**. It was the neighbourhoods of Dubai Marina, Palm Jumeirah, Downtown Dubai, and Jumeirah Lakes Towers that stood out the from a sales revenue perspective, indicating the continued interest in these areas from an investment perspective***.

 

Short Term Rental Market Update
 

Dubai is a leading destination in the Middle East and has recently experienced remarkable growth: the Dubai Department of Tourism and Commerce Marketing (DTCM) reports that the city has witnessed a notable increase in the number of overnight visitors, with over 6.02 million recorded from January to April 2023. This represents an 18% surge compared to the previous year and brings the city close to pre-pandemic levels (6.2 million in 2019).

 

The rising demand for alternative accommodation options has led to significant growth in Dubai's market for online travel agencies (OTA's), including Airbnb. Travelers now have access to a wide selection of options, with over 26,500 listings available in the city. The supply of accommodations has seen a substantial increase over the past two years, growing at a rate of 402%. This includes an 80% rise in supply from 2021 to 2022, and a projected further increase of 155% from 2022 to 2023. However, we still believe that there is significant space for this supply growth in short term rentals.

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* DXB Interact 

**Property Finder Report 

**Dubai Land Department