The Dubai real estate market kicked off 2024 on a high note, with both sales and rental sectors witnessing substantial growth, according to the latest market snapshot report from Allsopp & Allsopp Real Estate.
The report revealed that Dubai sales transactions surged by 19.3 percent compared to the first quarter of 2023, totaling 33,346 transactions.
The total sales value also saw a significant increase of 23.9 percent from the same period last year, reaching a substantial AED85 billion.
Dubai apartments continue to attract buyers
In terms of property types, apartments remained the preferred choice among buyers, accounting for 61 percent of all Dubai sales by volume, with a total of 27,357 transactions.
Villa and townhouse sales followed closely, comprising 18 percent of the market’s sales value, with 5,989 transactions.
Property prices in Dubai reached a new record high, standing at AED1,325 per square foot, a 7.4 percent climb from the previous peak in September 2014.
The report highlighted the continued dominance of off-plan sales, which comprised 57 percent of all sales volume and totaled a value of AED42.3 billion.
The secondary market followed suit, making up 43 percent of all sales volume, with transactions standing at AED43.4 billion.
Allsopp & Allsopp’s sales team recorded a 24 percent surge across all sales transaction activity when compared to the fourth quarter of 2023.
British nationals ‘top buyers’ in Q1 2024
British nationals topped the list of buyers in this quarter, making up 23 percent of all sales, attracted by modern villas and townhouses, the Allsopp & Allsopp report said.
The report also noted that financing surpassed cash buyers, with 53 percent of buyers opting for financing options, while cash buyers accounted for 47 percent.
Properties priced below AED3 million accounted for 80 percent of all transactions in the first quarter, indicating a demand for reasonably priced and off-plan properties, specifically from first-time buyers.
Property prices remained stable, with low, single-digit growth across most residential communities, a trend expected to continue for the first half of the year, given the current levels of buyer demand.
The lettings market also experienced an impressive rise across viewings, registrations, and property listings.
Allsopp & Allsopp’s lettings team recorded a significant increase in viewings, reaching a 26 percent increase month-over-month and a massive 126 percent increase year-on-year. Client registrations followed suit with a 15 percent month-on-month rise.
In response to the rising demand, landlords increased property listings by 25 percent compared to the previous quarter.
Letting prices also saw an average uptick across both apartments and villas/townhouses.
The report recorded an average price increase of 11 percent from the fourth quarter of 2023, indicating a healthy market and promising potential for higher returns for property investors.
The report highlighted several notable sales and rental transactions in prestigious residential communities.
On the sales front, transactions included AED155 million for a property at the Bulgari Resort and Residences, AED268.3 million for a property in the DMCC Enterprise Zone, and AED 160 million for a property in JB-MV19, Jumeirah Bay Island.
In the rental market, significant villa and townhouse transactions took place, with a notable Parkway Vistas transaction for AED 3.5 million.
Apartment transaction volumes outperformed villa transactions, with a 3 percent increase compared to the last quarter, amounting to 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.
Lebanese nationals also made a notable presence at 3 percent.
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