Monthly Report | Dubai Real Estate Market – Residential | June 2023 

SUPPLY ANALYSIS

Residential supply in Dubai continued to grow month on month. Most developers continue to concentrate on the mainstream apartment market due to its lower ticket sizes and higher development returns. Despite the demand for villas continuing to rise, we do not see developers particularly responding to this demand. As of date, the Maximum supply of 1 BHK is ready, followed by 2 BHK. Together, these two configurations contribute over 50% of the total ready supply in the market. 1 BHK with 20% contribution, followed by Studio apartment (17% share) have a maximum upcoming supply.

SALES ANALYSIS (OFF PLAN & READY TRANSACTION ) 

During the month of June 2023, the total number of residential transactions stood at nearly 6872, which decreased by 12% from the previous month. Off-plan transactions volume was reduced by 10% MoM while ready transactions volume declined by 14%. Out of the total transaction volume, nearly 55% of the sales were recorded for Off-plan properties and the remaining were for the ready properties. In the first half of 2023, the city reported over 41,000 total property transactions, a 10% increase in sales volume over the same time the year before.

In June 2023, the total value of all residential transactions was registered worth AED 16 billion, approx. 13% lesser than the previous month and 15% lesser than the same period of the previous year. Out of the total value, 57% of the value was recorded in the off-plan market, with the other transactions being registered for ready properties. MoM, both the Off-Plan and ready transactions recorded a decline in value. However, compared to the same period of the previous year, off-plan market transactions increased significantly by 12% in the current month, while ready transactions value decreased at a stronger pace, by 44

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