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27% YoY rise in transactions, 35% in value: February 2024 shows remarkable real estate growth

In February, the most popular areas searched for owning apartments in Dubai were Dubai Marina, Downtown Dubai, Jumeirah Village Circle, Business Bay, and Palm Jumeirah

27% YoY rise in transactions, 35% in value: February 2024 shows remarkable growth

In February 2024, sales transactions in the real estate market saw a significant year-on-year increase of over 27%, with more than 11,900 transactions recorded compared to 9,371 in February 2023. The value of these transactions also experienced a remarkable upswing, reaching almost $9.96 billion (AED 36.6 billion), representing a 35% increase from the same month in the previous year, revealed Property Finder, a top property portal in the MENA region, in its market performance highlights for February 2024.

Apartments vs Villas/Townhouses

59% of home seekers who had an interest in buying property were searching for an apartment, while 41% were seeking Villas/Townhouses. Conversely, in the rental market, approximately 80% of tenants are searching for apartments, while the remaining 20% are seeking to own a villa/townhouse.

Furnished vs Unfurnished

Roughly 60.7% of tenants seeking apartments prefer furnished properties, while 36.6% are searching for unfurnished options. In contrast, tenants who can afford villa/townhouse rentals have different preferences, with about 55.5% seeking unfurnished units and 42.6% looking for furnished options.

Sizeable units in demand

Approximately 36% of tenants were seeking one-bedroom units, while 31% expressed a preference for two-bedroom apartments and 22% were searching for studios. Regarding Villas/Townhouses, 42% of tenants were primarily looking for three-bedroom units, while 35% were searching for four-bedroom or larger options. As for ownership, approximately 33% of home seekers or investors were seeking one-bedroom units, while 35% expressed a preference for two-bedroom apartments and 15% were searching for studios. Regarding Villas/Townhouses, 40% of home seekers were primarily looking for three-bedroom units, while 44% were searching for four-bedroom or larger options.

Ownership vs rental choices

The top areas searched to own apartments were Dubai Marina, Downtown Dubai, Jumeirah Village Circle, Business Bay, and Palm Jumeirah. Dubai Hills Estate, Al Furjan, Arabian Ranches, Palm Jumeirah and Mohammed Bin Rashid City were the most desired areas to own villas/townhouses. Leading areas for rentals were Dubai Marina, Jumeirah Village Circle, Downtown Dubai, Business Bay and Deira. While Dubai Hills Estate, Damac Hills 2, Jumeirah, Al Barsha and Umm Suqeim were popular when it came to searches to rent villas/townhouses.

Support from the existing market

Existing property transactions revealed a YoY increase of approximately 23% in volume, with over 5,500 transactions. The value of these transactions surged by 46% YoY, touching $6.397 billion (AED 23.5 billion), compared to $4.357 billion (AED 16 billion) in February 2023.

Growing demand for off-plan

Off-plan showed more demand, and the existing property transactions had a YoY increase of approximately 31% in volume and 6,385 recorded transactions. The value of these transactions experienced a surge of around 18.5% YoY, reaching around $3.54 billion (AED 13 billion), compared to $2.99 billion (AED 11 billion) in February 2023.

Cherif Sleiman, Chief Revenue Officer at Property Finder, says, “We are thrilled to witness February maintaining the momentum established in January, indicating optimistic prospects for ongoing success throughout 2024. The month has demonstrated a remarkable surge in the real estate market, with significant increases in both transaction volume and value. This reaffirms the resilience and dynamism of the industry, reflecting positive trends and promising opportunities for investors and home seekers alike. It is interesting to see while existing property transactions surged in both volume and value, off-plan transactions exhibited even higher demand with a greater YoY increase in volume.”