In January 2024, the Dubai real estate market witnessed a remarkable surge in sales, with a recorded amount of $9.6 billion (AED35.4 billion). This represents a significant increase of 27 percent compared to the previous year, according to a recent report from property portal Property Finder. Data indicates that the market experienced a year-on-year (YoY) growth of 17 percent in recorded sales transactions, surpassing 11,000 compared to 8,712 in January 2023.
Apartments vs villas/townhouses
Among individuals looking to purchase properties, 58 percent expressed their interest in apartments, whereas 42 percent were specifically seeking villas or townhouses. On the other hand, in the rental market, a substantial 80 percent of tenants were found to be in search of apartments, while 20 percent were interested in villas or townhouses.
Furnished vs unfurnished
Approximately 62.2 percent of tenants in search of apartments were discovered to prefer furnished properties, whereas 36.1 percent were specifically looking for unfurnished options. Conversely, tenants who had the means to afford villa or townhouse rentals displayed the opposite trend, with around 57 percent seeking unfurnished units and 42 percent in search of furnished options.
Sizeable units in demand
Roughly 36 percent of tenants were in search of one-bedroom units, while 31 percent were specifically looking for two-bedroom apartments, and 22 percent had their sights set on studios. When it came to villas or townhouses, 43 percent of tenants were seeking three-bedroom units, while 34 percent were searching for four-bedroom or larger options. In terms of property ownership, 33 percent of potential buyers were specifically looking for one-bedroom units, while 36 percent were in search of two-bedroom apartments, and 14 percent had their sights set on studios. As for villas or townhouses, 40 percent of buyers were primarily interested in three-bedroom units, while 44 percent were actively searching for four-bedroom or larger options.
Ownership vs rental choices
The top areas that garnered the most interest for owning apartments were Dubai Marina, Downtown Dubai, Jumeirah Village Circle, Business Bay, and Palm Jumeirah. On the other hand, when it came to owning villas or townhouses, Dubai Hills Estate, Arabian Ranches, Palm Jumeirah, Al Furjan, and Damac Hills emerged as the most desired areas.
In terms of rentals, Dubai Marina, Jumeirah Village Circle, Downtown Dubai, Business Bay, and Deira stood out as the leading areas. When it came to renting villas or townhouses, Dubai Hills Estate, Al Barsha, Damac Hills 2, Jumeirah, and Umm Suqeim were popular choices among potential tenants.
Support from existing market
As for existing property transactions, there was a year-on-year increase of around 8 percent in volume, amounting to over 5,000 transactions. The value of these transactions experienced a significant surge, rising by 31 percent compared to the previous year, reaching AED21 billion, as opposed to AED15.7 billion recorded in January 2023.
Growing demand for off-plan
Demand for off-plan properties exhibited a notable increase, with a year-on-year volume growth of approximately 25 percent, resulting in a total of 6,000 recorded transactions. The values of these transactions also experienced a surge of around 21 percent compared to the previous year, reaching approximately AED15 billion, in contrast to the AED12.2 billion recorded in January 2023.
Positive scope for sustained successes in 2024
Commenting on the findings, Cherif Sleiman, chief revenue officer at Property Finder, said: “We are delighted to see January build on the great momentum from last year, revealing positive scope for sustained successes in 2024. It’s interesting to see off-plan gain further traction, promising demand for new projects. As a leading proptech portal, we continue to keep our eyes on evolving consumer choices, with an aim to empower our partners and property seekers to make more informed decisions within this thriving real estate landscape.”
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