Dubai's off-plan property sales more than doubled in May to $3.8bn

Market activity in the segment hits its highest level in a decade, EFG Hermes says

Dubai Harbour, the seafront development near The Palm Jumeirah, had about Dh3 billion in off-plan sales in May, according to EFG Hermes. Pawan Singh / The National

Dubai’s off-plan sales surged more than 100 per cent annually in May to Dh14 billion ($3.8 billion) amid strong activity in Dubai Harbour and Dubai Land areas, EFG Hermes has said.

The total number of off-plan units sold during the month also rose more than 100 per cent to 5,476 units, the Egyptian bank’s Dubai Property Chartbook data shows.

Dubai Harbour, the seafront development near Palm Jumeirah recorded total sales of about Dh3 billion in the month, up from Dh134 million in the same month last year, while sales in Dubailand surged to Dh1.15 billion, from Dh274 million in May last year.

Other areas also recorded strong sales activity, including Mohammed bin Rashid City, Downtown Dubai and The Palm Jumeirah, with the off-plan market activity across the emirate reaching its highest level in a decade.

The UAE property market made a strong recovery from the coronavirus-induced slowdown on the back of government initiatives such as residency permits for retirees and remote workers, as well as the expansion of the 10-year golden visa programme and the economic boost generated by Expo 2020 Dubai and higher oil prices.

The performance of the Dubai property market last year was described as "exceptional" by Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, as the value of deals jumped 76.5 per cent to a high of Dh528 billion.

The number of transactions rose by 44.7 per cent annually to 122,658, the Dubai Media Office said earlier this year.

Abu Dhabi recorded 5,472 real estate transactions worth Dh27.9 billion in the first quarter of 2023, according to the latest data from the Department of Municipalities and Transport.

The value of the deals in the emirate more than doubled during the three-month period to the end of March while the volume of transactions, which include property sales and mortgages, rose by 66 per cent.

Total property transactions in Dubai – including land, apartments, villas and offices – rose 94 per cent annually in May to Dh45 billion, according to EFG Hermes.

Total residential market transactions during the month were up 134 per cent annually at Dh32.7 billion.

All residential segments, including luxury, affordable and budget, recorded growth during the month.

The luxury segment includes Downtown Dubai, Old Town, The Palm Jumeirah and the Dubai International Financial Centre while the affordable segment includes Business Bay, Jumeirah Lake Towers, Dubai Marina, Emirates Living, Arabian Ranches and affordable units in Downtown Dubai.

The budget segment includes International City, Discovery Gardens, Dubai Sports City, Jumeirah Village, International Media Production Zone and MotorCity.

Dubai's luxury home sales during the month more than doubled to about Dh11 billion, while affordable and budget home sales also more than doubled to about Dh14 billion, and Dh8.8 billion, respectively, the data shows.

Dubai Harbour registered the best annual price performance at Dh3,976 per square foot, up from Dh2,672 per square foot in May last year.

Other top-performing areas include MBR City and The Palm, while prices dropped in Dubai Marina, Tilal Al Ghaf and luxury homes in Downtown Dubai, EFG Hermes said.

Dubai recorded some big property deals this year. Earlier this year, a 24,500-square-foot sandy plot in Jumeirah Bay was sold for Dh125 million, making it the most expensive land plot sold in the UAE, while a Versailles-like mansion is being sold for Dh750 million in Emirates Hills.

In May, a luxury mansion on the Lanai Islands, in the Tilal Al Ghaf project, was sold for Dh200 million.