The data shows that May 2024 marked an unprecedented peak for Dubai’s real estate sector, recording the highest volume and value of transactions ever.
Dubai’s real estate sector achieved a record high, registering the greatest volume and value of transactions to date, as highlighted in Property Finder’s market performance report for May 2024.
A total of 17,713 transactions were recorded, representing a 53 percent increase from May 2023.
The value of these transactions rose by 38 percent, reaching AED 46.5 billion.
New Dubai real estate market trends
“May 2024 has once again demonstrated that real estate growth in the UAE is sustainable. We observed a significant increase this month in both the volume and value of transactions, not only from a year-over-year perspective but also surpassing pre-pandemic levels,” said Cherif Sleiman, Chief Revenue Officer at Property Finder.
The market experienced a substantial rise in volume, exceeding the previous peak achieved in March 2024 by 10 percent, and surpassing the highest value recorded in December 2023 by 30 percent.
Regarding new rental trends, the report indicated that 78 percent of tenants preferred apartments, while the remaining 22 percent opted for villas or townhouses.
Among those searching for apartments, 58 percent preferred furnished properties, while 40 percent opted for unfurnished ones.
For villas and townhouses, about 57 percent of tenants sought unfurnished units, and 42 percent chose furnished properties.
When it came to apartment searches, 35 percent were looking for one-bedroom units, 33 percent preferred two-bedroom units, and 19 percent were interested in studios.
For those interested in villas or townhouses, 43 percent searched for three-bedroom units, while 38 percent were looking for units with four or more bedrooms, indicating a relatively even distribution.
The top areas searched for renting apartments included Dubai Marina, Jumeirah Village Circle, Downtown Dubai, Business Bay, and Jumeirah Lake Towers. For villas or townhouses, popular areas included Jumeirah, Dubai Hills Estate, Damac Hills 2, Umm Suqeim, and Al Barsha.
Dubai off-plan property market transactions hit over 11,000 in new record
The off-plan market achieved the highest volume and value of transactions ever, reaching 11,107 transactions.
“The record-breaking surge in off-plan investments this month indicates a rising demand for community-focused living and long-term investments with high return potential. This demand is being met by numerous new projects in development, catering to various price ranges and ensuring that upcoming communities are accessible to all income levels. This variety in both existing and off-plan offerings was recently identified as a key reason why consumers consider the UAE for a future home, as highlighted in our inaugural White Paper launched at our second Annual PF Connect,” Sleiman added.
The highest point before this was reached in April 2009, with 9,837 transactions, showing a 13 percent increase and indicating a positive path for long-term investment in the country.
Regarding value, the off-plan market recorded transactions worth approximately AED22.7 billion, exceeding the previous peak recorded in September 2023 by 25 percent.
The existing market continued to support Dubai’s real estate sector, witnessing an 8.8 percent year-on-year increase in volume, with 6,606 transactions recorded.
The value of these transactions saw a significant 21 percent year-on-year rise, reaching about AED23.8 billion compared to AED19.7 billion in May 2023.
“We will persist in our efforts to enhance property search aligned with contemporary needs and collaborate closely with regulators and partners to provide individuals with all the necessary information to make informed decisions in their quest for a home,” stated Sleiman.
Dubai apartments see ownership demand over villas, townhouses
Regarding ownership preferences, the study revealed that 59 percent of property seekers were interested in apartments, while 41 percent were in search of villas or townhouses.
Among investors, 32 percent opted for one-bedroom units, 36 percent favored two-bedroom apartments, and 14 percent sought studios.
For villas and townhouses, 40 percent of seekers desired three-bedroom units, while 46 percent searched for four bedrooms or larger.
Popular areas for apartment ownership included Dubai Marina, Downtown Dubai, Jumeirah Village Circle, Business Bay, and Palm Jumeirah.
Dubai Hills Estate, Dubai South (Dubai World Central), Al Furjan, Arabian Ranches, and Palm Jumeirah remained the most sought-after areas for villa or townhouse ownership. Interest in Dubai South has been increasing steadily with the development of Al Maktoum International Airport, indicating a preference for mixed-use communities.
