According to a report by Property Finder, the growth of Dubai’s real estate sector continued to be significant in April.
According to Property Finder, Dubai’s real estate market remains robust, with sales transactions surging by over 45% last month. The platform’s April 2024 market performance report provides key insights into the sector. Compared to April 2023, there was a notable year-on-year increase in recorded sales transactions, rising from 7,999 to 11,607, marking a significant growth of 45.11%.
Dubai real estate growth
In addition to the growth seen in Q1 2024, the value of transactions witnessed a significant surge, totaling nearly AED32 billion ($8.7 billion), representing a remarkable increase of 21.13% compared to the corresponding month last year.
Additional insights from the Property Finder analysis reveal:
Growth in demand for apartments: Property Finder’s exclusive data indicates that 58% of homebuyers were interested in purchasing apartments, while 42% were searching for villas or townhouses. Conversely, 79% of tenants were seeking apartments, with 21% contributing to the demand for villas or townhouses. This highlights a surge in apartment demand compared to previous months, when villas garnered more attention.
Consistent momentum for bigger villas: As in previous months, there was a continued increase in demand for three-bedroom villas, with 37 percent of potential renters expressing interest in four-bedroom or larger properties. Among those interested in purchasing villas, 41 percent favored three-bedroom units, while 45 percent preferred four-bedroom or larger options.
Demand thrives for furnished properties: Approximately 64% of apartment seekers preferred furnished properties with ready interiors, while 33% opted for unfurnished options. Conversely, individuals searching for villa or townhouse rentals exhibited different preferences, with approximately 55% favoring unfurnished units and 44% considering furnished options.
Sustained preference for sizable units: Of those interested in renting apartments, 36 percent favored one-bedroom units, while 32 percent opted for two-bedroom apartments, and 21 percent preferred studios. Conversely, 33 percent of property investors or those aiming to own their residence sought one-bedroom units, with 36 percent preferring two-bedroom apartments and 14 percent searching for studios.
New areas in focus: With Dubai’s plans to relocate airport operations, there has been a notable increase in searches for villa ownership in Dubai South (Dubai World Central). Other sought-after areas include Dubai Hills Estate, Palm Jumeirah, Arabian Ranches, and Al Furjan. For apartment ownership,
- Dubai Marina,
- Downtown Dubai,
- Jumeirah Village Circle,
- Business Bay,
- Palm Jumeirah
remained popular choices. Top areas searched for apartment rentals included Dubai Marina, Jumeirah Village Circle, Downtown Dubai, Business Bay, and Deira. When it came to villa and townhouse rentals, popular areas included Dubai Hills Estate, Damac Hills 2, Jumeirah, Al Barsha, and Dubai Land.
Continued support from the existing market: The volume of existing property transactions experienced a year-on-year uptick of around 6.45 percent, totaling 4,404 transactions. These transactions amounted to approximately AED18.1 billion ($4.9 billion) in value.
Off-plan interest thrives: Off-plan transactions, offering favorable investment returns, experienced significant growth, with a volume increase of approximately 86.51% year-on-year, totaling 7,203 transactions. The value surged by 77.09% year-on-year, reaching around AED 13.9 billion ($3.8 billion), compared to AED 7.8 billion ($2.1 billion) in April 2023.
Cherif Sleiman, Property Finder’s Chief Revenue Officer, expressed optimism about the growing interest in off-plan options, citing the diverse choices available, a robust pipeline, and the potential for high returns on investment.
Recent regulatory adjustments, such as the requirement for a primary unit permit before advertising such properties, aim to enhance the quality of supply. Despite evolving demand trends, the real estate market continues to demonstrate resilience.
Recent data reveals a shift in consumer preferences towards apartments, contrasting with the villa demand observed during the pandemic. Sleiman anticipates ongoing market dynamism, particularly following announcements like the relocation of operations from Dubai International Airport to Al Maktoum International Airport, which is expected to stimulate demand in developing areas.
