Dubai’s real estate sector marked an all-time peak, recording the highest volume and value of transactions ever, according to Property Finder’s market performance highlights for May 2024.
The total number of transactions recorded was 17,713, an increase of 53 percent compared to May 2023.
The value of these transactions increased by 38 percent, touching AED46.5 billion.
New Dubai real estate market trends
“May 2024 has once again proven that real estate growth in the UAE is here to stay. We have seen a remarkable spike this month in volume and value of transactions not just from YoY perspective, but also exceeding pre-pandemic numbers,” Cherif Sleiman, Chief Revenue Officer at Property Finder said.
The market saw a massive rise in volume surpassing the previous peak achieved in March 2024 by 10 percent, and crossing the highest value achieved in December 2023 by 30 percent.
In terms of new rental trends, the report revealed that 78 percent of tenants sought apartments, while the remaining 22 percent considered villas or townhouses.
Of those looking for apartments, 58 percent preferred furnished properties and 40 percent opted for unfurnished units.
For villas and townhouses, around 57 percent of tenants searched for unfurnished units, and 42 percent went for furnished properties.
When searching for apartments, 35 percent looked for one-bedroom units, 33 percent expressed a preference for two bedrooms, and 19 percent wanted studios.
Among those keen on villas or townhouses, 43 percent looked for three-bedroom units, and 38 percent searched for four bedrooms or larger, showing a fairly equal distribution.
Top areas searched for renting apartments included Dubai Marina, Jumeirah Village Circle, Downtown Dubai, Business Bay, and Jumeirah Lake Towers. Jumeirah, Dubai Hills Estate, Damac Hills 2, Umm Suqeim, and Al Barsha were popular among those looking to rent villas or townhouses.
Dubai off-plan property market transactions hit over 11,000 in new record
The off-plan market recorded the highest volume and value of transactions ever, touching 11,107 transactions.
“The record-breaking rise in off-plan investments this month shows a growing demand for community centric living and longer-term investments with the potential of high returns. This is being met by several new projects in the pipeline, catering to a variety of price points ensuring upcoming communities are not limited to a certain level of affluence. This diversity in existing and off-plan offering was recently revealed as a key contributor to why consumers consider the UAE for a future home, as seen within our inaugural White Paper launched at our second Annual PF Connect,” Sleiman added.
The previous peak was achieved in April 2009 with 9,837 transactions, resulting in a 13 percent increase and revealing a positive trajectory for long-term investment in the nation.
In terms of value, the off-plan market achieved transactions worth around AED22.7 billion, surpassing the highest peak last recorded in September 2023 by 25 percent.
The existing market continued to support Dubai’s real estate market with a year-on-year increase of approximately 8.8 percent in volume and 6,606 transactions recorded.
The value of these transactions experienced a notable increase of 21 percent year-on-year, touching approximately AED23.8 billion, compared to AED19.7 billion in May 2023.
“We will continue to play our role in elevating property search that is in sync with today’s needs, and work cohesively with regulators and partners to give people all the information they need to make sound decisions in their home-seeking journey,” Sleiman said.
Dubai apartments see ownership demand over villas, townhouses
In terms of ownership, the report found 59 percent of those seeking property ownership wanted an apartment, while 41 percent searched for villas or townhouses.
Among investors, 32 percent looked for one-bedroom units, 36 percent preferred two-bedroom apartments, and 14 percent sought studios.
For villas and townhouses, 40 percent of seekers wanted three-bedroom units, and 46 percent searched for four bedrooms or larger.
Popular areas for apartment ownership were 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 were the most desired areas to own villas or townhouses. Interest in Dubai South continues to grow following the development of Al Maktoum International Airport, indicating considerations for mixed-use communities.
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