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Dubai’s real estate sector is off to a flying start

With a staggering 17% increase in sales transactions and a massive 27% surge in transaction value, Dubai’s real estate market is only looking upwards and onwards

Dubai's real estate market

Property Finder, the leading property portal in the MENA region, has just released its market performance highlights for January 2024. And guess what? Dubai’s real estate sector is off to a fantastic start! There was a whopping 17% increase in sales transactions compared to January 2023. That’s over 11,000 transactions recorded, compared to 8,712 the previous year. But that’s not all. January 2024 also saw a significant surge in the value of these transactions, reaching almost AED 35 billion. That’s a massive 27% increase compared to the same month last year.

It’s clear that the momentum from 2023 is still going strong. Dubai’s real estate market is evolving fast, and these figures prove that it’s heading in an exciting direction. So, if you’ve been considering investing or buying property in Dubai, now might just be the perfect time to jump in.

Apartments vs Villas/Townhouses

When it comes to property preferences, there’s an interesting divide. Among potential buyers, 58% are on the lookout for apartments, while 42% have their hearts set on villas or townhouses. However, in the rental market, the numbers flip. A whopping 80% of tenants are in search of apartments, while only 20% are interested in villas or townhouses.

Furnished vs Unfurnished

Another factor that plays a role in tenants’ decision-making is the furnished or unfurnished option. Among those looking for apartments, around 62.2% prefer furnished properties, while 36.1% are on the hunt for unfurnished options. On the other hand, tenants with the means to afford villa or townhouse rentals show a different trend. Approximately 57% of them opt for unfurnished units, while 42% prefer furnished options. These insights highlight the diverse preferences in the real estate market, emphasising the importance of catering to the different needs and desires of prospective buyers and tenants.

Sizeable units in demand

About 36% of tenants were searching for one-bedroom units, with 31% in need of two-bedroom apartments and 22% searching for studios. When it comes to villas and townhouses, a whopping 43% of tenants were on the lookout for three-bedroom units, and 34% were seeking four-bedroom or larger options. As for ownership, 33% of tenants were specifically seeking one-bedroom units, while 36% were in search of two-bedroom apartments and 14% were interested in studios. As for villas and townhouses, 40% of tenants were primarily looking for three-bedroom units, while 44% were on the hunt for four-bedroom or larger options.

Ownership vs rental choices

In Dubai, the top areas people searched to own apartments were Dubai Marina, Downtown Dubai, Jumeirah Village Circle, Business Bay, and Palm Jumeirah. If you’re looking to settle down in a villa or townhouse, the most desired areas were Dubai Hills Estate, Arabian Ranches, Palm Jumeirah, Al Furjan, and Damac Hills. For those who preferred renting, the leading areas were Dubai Marina, Jumeirah Village Circle, Downtown Dubai, Business Bay, and Deira. If you had your heart set on renting a villa or townhouse, popular choices included Dubai Hills Estate, Al Barsha, Damac Hills 2, Jumeirah, and Umm Suqeim.

Support from the existing market

Existing property transactions revealed a YoY increase of approximately 8% in volume, with over 5,000 transactions. The value of these transactions surged by 31% YoY, touching AED 21 billion, compared to AED 15.7 billion in January 2023.

Growing demand for off-plan

Off-plan showed more demand, with a YoY increase of approximately 25% in volume and 6,000 recorded transactions. Values experienced a surge of around 21% YoY, reaching roughly AED 15 billion, compared to AED 12.2 billion in January 2023.

Cherif Sleiman, Chief Revenue Officer at Property Finder, concluded “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.”