The Dubai real estate sector saw a year-on-year increase of more than 27 per cent in recorded sales transactions last month, according to Property Finder report.
In February 2024, there were more than 11,900 sales transactions compared to 9,371 in February 2023.
Further leveraging the positive trends from 2023, the value of transactions experienced a remarkable upswing, reaching almost AED36.6bn ($10bn) and marking an increase of 35 per cent compared to the same month in last year, highlighting the strength and dynamism of the real estate market.
Dubai real estate trends
- Apartments vs Villas/Townhouses: 59 per cent of home seekers who had an interest in buying property were searching for an apartment, while 41 per cent are seeking Villas/Townhouses. In the rental market, approximately 80 per cent of tenants are searching for apartments, while the remaining 20 per cent are seeking to own a villa/townhouse
- Furnished vs Unfurnished: Roughly 60.7 per cent of tenants seeking apartments prefer furnished properties, while 36.6 per cent are searching for unfurnished options. In contrast, tenants who able to afford villa/townhouse rentals have different preferences, with about 55.5 per cent seeking unfurnished units and 42.6 per cent looking for furnished options
- Sizeable units in demand: Approximately 36 per cent of tenants were seeking one-bedroom units, while 31 per cent expressed a preference for two-bedroom apartments and 22 per cent were searching for studios. Regarding Villas/Townhouses, 42 per cent of tenants were primarily looking for three-bedroom units, while 35 per cent were searching for four-bedroom or larger options. As for ownership approximately 33 per cent of home seekers or investor were seeking one-bedroom units, while 35 per cent expressed a preference for two-bedroom apartments and 15 per cent were searching for studios. Regarding Villas/Townhouses, 40 per cent of home seekers were primarily looking for three-bedroom units, while 44 per cent were searching for four-bedroom or larger options
- Support from existing market: Existing property transactions revealed a year-on-year increase of approximately 23 per cent in volume, with more than 5,500 transactions. The value of these transactions surged by 46 per cent year-on-year, touching AED23.5bn ($6.4bn), compared to AED16bn ($4.4bn) in February 2023.
- Growing demand for off-plan: Off-plan showed more demand, the existing property transactions a year-on-year increase of approximately 31 per cent in volume and 6,385 recorded transactions. While the value of these transactions experienced a surge of around 18.5 per cent year-on-year, reaching around AED13bn ($3.5bn), compared to AED11bn ($3bn) in February 2023.
Top areas searched to own apartments were:
- Dubai Marina
- Downtown Dubai
- Jumeirah Village Circle
- Business Bay
- Palm Jumeirah
The most desired areas to own villas/townhouses were:
- Dubai Hills Estate
- Al Furjan
- Arabian Ranches
- Palm Jumeirah
- Mohammed Bin Rashid City
Leading areas for rentals were:
- Dubai Marina
- Jumeirah Village Circle
- Downtown Dubai
- Business Bay
- Deira
The most popular searches to rent villas/townhouses were:
- Dubai Hills Estate
- Damac Hills 2
- Jumeirah
- Al Barsha
- Umm Suqeim
Cherif Sleiman, Chief Revenue Officer at Property Finder, said: “We are thrilled to witness February maintaining the momentum established in January, indicating optimistic prospects for ongoing success throughout 2024.
“The month has demonstrated a remarkable surge in the real estate market, with significant increases in both transaction volume and value.
“This reaffirms the resilience and dynamism of the industry, reflecting positive trends and promising opportunities for investors and home seekers alike.
“It is interesting to see while existing property transactions surged in both volume and value, off-plan transactions exhibited even higher demand with a greater year-on-year increase in volume.”
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