Dubai witnessed a remarkable 19.3 percent increase in sales transactions compared to the first quarter of 2023, reaching a total of 33,346 transactions, as highlighted in the report.
The beginning of 2024 saw a promising start for the Dubai real estate market, with significant growth observed in both sales and rental sectors, as indicated by the latest market snapshot report from Allsopp & Allsopp Real Estate.
According to the report, Dubai experienced a notable surge in sales transactions, with a 19.3 percent increase compared to the first quarter of 2023, totaling 33,346 transactions.
Moreover, the total sales value showed a substantial rise of 23.9 percent from the corresponding period last year, reaching an impressive AED85 billion.
Buyers are still drawn to Dubai apartments
Among buyers, apartments continued to be the top choice, representing 61 percent of all Dubai sales by volume, totaling 27,357 transactions.
Following closely behind were villa and townhouse sales, making up 18 percent of the market’s sales value, with 5,989 transactions.
Dubai’s property prices soared to a new record high, reaching AED1,325 per square foot, marking a 7.4 percent increase from the previous peak in September 2014.
The report underscored the ongoing prevalence of off-plan sales, constituting 57 percent of total sales volume and amounting to AED42.3 billion in value.
In parallel, the secondary market mirrored this trend, accounting for 43 percent of total sales volume, with transactions reaching AED43.4 billion.
The sales team at Allsopp & Allsopp witnessed a 24 percent increase in overall sales transaction activity compared to the fourth quarter of 2023.
British citizens were the leading purchasers in the first quarter of 2024
In this quarter, British nationals dominated the buyer’s list, constituting 23 percent of all purchases, drawn to modern villas and townhouses, according to the Allsopp & Allsopp report.
Furthermore, financing surpassed cash transactions, with 53 percent of buyers opting for financing options, while cash buyers represented 47 percent.
Properties priced below AED3 million comprised 80 percent of all transactions in the first quarter, signaling a demand for reasonably priced and off-plan properties, particularly among first-time buyers.
Property prices remained steady, with low, single-digit growth observed across most residential communities, a trend anticipated to persist in the first half of the year due to current levels of buyer demand.
The lettings market also witnessed a remarkable surge in viewings, registrations, and property listings.
The lettings team at Allsopp & Allsopp noted a substantial increase in viewings, with a 26 percent rise month-over-month and an impressive 126 percent surge year-on-year. Client registrations mirrored this trend with a 15 percent month-on-month increase.
In response to the escalating demand, landlords escalated property listings by 25 percent compared to the previous quarter.
Letting prices experienced an average increase across both apartments and villas/townhouses.
The report indicated an average price surge of 11 percent from the fourth quarter of 2023, signifying a robust market and promising potential for higher returns for property investors.
Several noteworthy sales and rental transactions occurred in prestigious residential communities.
Sales transactions featured a property at the Bulgari Resort and Residences sold for AED155 million, another property in the DMCC Enterprise Zone sold for AED268.3 million, and a property in JB-MV19, Jumeirah Bay Island sold for AED160 million.
In the rental market, significant transactions for villas and townhouses were observed, including a notable transaction for AED 3.5 million at Parkway Vistas.
Apartment transaction volumes surpassed villa transactions, with a 3 percent increase compared to the last quarter, resulting in an 8 percent year-on-year growth.
Tenant demographics this quarter saw British nationals leading at 22 percent, followed by Indian nationals at 8 percent, and Russian and French nationals each at 5 percent, with Lebanese nationals also making a notable presence at 3 percent.
Source : Arabian Business
