In January, Dubai’s real estate sector sustained its positive performance in the new year, witnessing a 25 percent year-on-year increase in off-plan sales.
Dubai’s real estate market appears poised to maintain its growth trajectory into 2024, as indicated by Property Finder’s recent report examining transactions in the emirate for the month of January.
In its latest findings, the property portal disclosed a 17% year-on-year increase in recorded sales transactions in Dubai’s real estate sector. This equates to over 11,000 transactions, a notable rise from the 8,712 transactions reported in January 2023.
Additionally, January witnessed a significant upswing in the value of transactions, reaching nearly Dhs35 billion, reflecting a 27% increase compared to the same month last year.
Cherif Sleiman, Chief Revenue Officer at Property Finder, remarked, “We are pleased to observe January building on the positive momentum from the previous year, indicating a favorable outlook for sustained success in 2024. The growing interest in off-plan properties is noteworthy, signaling demand for new projects.”
Growing segments of Dubai’s real estate market
Demand for off-plan:
The report highlights a greater demand for off-plan properties, showing a year-on-year (YoY) increase of around 25 percent in volume, with approximately 6,000 recorded transactions. Values also witnessed a surge of about 21 percent YoY, reaching approximately Dhs15 billion, as opposed to Dhs12.2 billion in January 2023.
In contrast, existing property transactions exhibited a YoY increase of roughly 8 percent in volume, totaling over 5,000 transactions. The value of these transactions saw a 31 percent YoY increase, reaching Dhs21 billion, compared to Dhs15.7 billion in January 2023.
Apartments vs Villas/Townhouses:
The report revealed that 58 percent of prospective property buyers were interested in apartments, while 42 percent favored villas or townhouses.
In the rental market, the trend was even more pronounced, with 80 percent of tenants seeking apartments and 20 percent searching for villas or townhouses.
Types of units in demand:
Around 36 percent of tenants sought one-bedroom units, with 31 percent exploring two-bedroom apartments and 22 percent expressing interest in studios.
In the case of villas/townhouses, 43 percent of tenants were in search of three-bedroom units, while 34 percent were on the lookout for four-bedroom or larger options.
Furnished vs unfurnished:
Approximately 62.2% of individuals in search of apartments opted for furnished properties, while 36.1% were specifically looking for unfurnished alternatives.
Conversely, those tenants with the means to afford villa/townhouse rentals exhibited a different trend, as around 57% were interested in unfurnished units, and 42% were in search of furnished options.
Ownership vs rental choices
According to the Property Finder, 33 percent of individuals were in search of one-bedroom apartments, while 36 percent were interested in two-bedroom apartments; meanwhile, 14 percent were specifically seeking studios.
In the realm of villas and townhouses, the data indicated that 40 percent of potential buyers were primarily focused on three-bedroom units, with 44 percent expressing interest in four-bedroom or larger options.
Most searched areas in Dubai
The top locations for purchasing apartments included Dubai Marina, Downtown Dubai, Jumeirah Village Circle, Business Bay, and Palm Jumeirah.
In the realm of villas and townhouses, the most sought-after areas for ownership were Dubai Hills Estate, Arabian Ranches, Palm Jumeirah, Al Furjan, and Damac Hills.
For rental properties, Dubai Marina, Jumeirah Village Circle, Downtown Dubai, Business Bay, and Deira emerged as the leading choices. When it came to renting villas and townhouses, Dubai Hills Estate, Al Barsha, Damac Hills 2, Jumeirah, and Umm Suqeim were popular searches.
