Property portal’s research finds that two-bedroom apartments are the most sought-after rental option
In February, real estate sales transactions in Dubai saw a robust increase of over 27%, totaling 11,900 deals compared to the 9,371 recorded in February 2023. This underscores the consistent strength in the market throughout the current year. Building on positive trends observed in 2023, the transaction value witnessed a significant surge, reaching nearly Dh36.6 billion. This represents a 35% growth compared to the same month in 2023, emphasizing the resilience and vitality of the real estate sector. Property Finder, a prominent property portal in the Mena region, provided this information.
The most sought-after rental option, comprising 35 percent of total searches, was two-bedroom apartments, closely followed by one-bedroom apartments, accounting for 33 percent.
In January 2024, Dubai’s real estate market experienced a significant boom with record-breaking sales totaling Dh35.4 billion. This marked a positive outlook for the sector in 2024, fueled by sustained momentum from the previous year and a growing demand for off-plan properties. January saw a substantial increase of 27 percent compared to Dh27.9 billion in January 2023, showcasing a consistent upward trend in recent years.
In February, there was a year-on-year increase of approximately 23 percent in volume for existing property transactions, with over 5,500 transactions. The value of these transactions surged by 46 percent year-on-year, reaching Dh23.5 billion, compared to Dh16 billion in February 2023, according to Property Finder’s report.
Off-plan properties showed higher demand, with existing property transactions experiencing a year-on-year increase of 31 percent in volume, totaling 6,385 transactions. The value of these transactions surged by around 18.5 percent year-on-year, reaching approximately Dh13 billion, compared to Dh11 billion in February 2023.
Cherif Sleiman, Chief Revenue Officer at Property Finder, noted that February maintained the momentum established in January, indicating optimistic prospects for ongoing success throughout 2024.
Sleiman emphasized a remarkable surge in the real estate market in February, 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. Existing property transactions surged in both volume and value, while off-plan transactions exhibited even higher demand with a greater year-on-year increase in volume.
The research revealed that 59 percent of home seekers interested in buying property were searching for an apartment, while 41 percent were seeking villas/townhouses. In the rental market, approximately 80 percent of tenants were searching for apartments, with the remaining 20 percent looking to own a villa/townhouse.
Approximately 60.7 percent of tenants seeking apartments prefer furnished properties, while 36.6 percent are searching for unfurnished options. For tenants able to afford villa/townhouse rentals, 55.5 percent were seeking unfurnished units, and 42.6 percent were looking for furnished options.
According to the portal, around 36 percent of tenants were seeking one-bedroom units, with 31 percent expressing a preference for two-bedroom apartments and 22 percent searching for studios. In terms of villas/townhouses, 42 percent of tenants were primarily looking for three-bedroom units, while 35 percent were searching for four-bedroom or larger options. Regarding ownership, about 33 percent of home seekers or investors were seeking one-bedroom units, with 35 percent expressing a preference for two-bedroom apartments, and 15 percent searching for studios. Concerning villas/townhouses, 40 percent of home seekers were primarily looking for three-bedroom units, while 44 percent were searching for four-bedroom or larger options.
Prominent locations sought for apartment ownership encompassed Dubai Marina, Downtown Dubai, Jumeirah Village Circle, Business Bay, and Palm Jumeirah. For villas and townhouses, the most coveted areas included Dubai Hills Estate, Al Furjan, Arabian Ranches, Palm Jumeirah, and Mohammed bin Rashid City. Leading choices for rentals were observed in Dubai Marina, Jumeirah Village Circle, Downtown Dubai, Business Bay, and Deira. When it came to renting villas/townhouses, popular searches focused on Dubai Hills Estate, Damac Hills 2, Jumeirah, Al Barsha, and Umm Suqeim.
