The Dubai real estate market achieved sales exceeding $9.6 billion in January 2024

The robust performance of the Dubai real estate market in January 2024 reflects a buoyant start to the year. With a surge in sales, evolving tenant preferences, and growing demand for off-plan properties, the market appears poised for sustained success in

2024-07-31 19:02:28

Introduction:

The beginning of 2024 has proven to be exceptionally promising for the Dubai real estate market, as it witnessed a remarkable surge in sales, recording over $9.6 billion (AED35.4 billion) in transactions during January. According to a recent report from property portal Property Finder, this represents a substantial increase of 27 percent compared to the previous year, showcasing a robust year-on-year growth of 17 percent in recorded sales transactions.

Sales Trends:

In terms of property preferences, the report highlights that 58 percent of potential buyers were inclined towards apartments, while 42 percent expressed their interest in villas or townhouses. This trend was mirrored in the rental market, with 80 percent of tenants searching for apartments and 20 percent specifically interested in villas or townhouses.

Furnished vs. Unfurnished:

The data further reveals interesting insights into the preferences of tenants. Approximately 62.2 percent of apartment seekers preferred furnished properties, while 36.1 percent were specifically looking for unfurnished options. Interestingly, tenants in search of villas or townhouses displayed an opposite trend, with 57 percent seeking unfurnished units and 42 percent interested in furnished options.

Unit Preferences:

Sizeable units remained in high demand, with 36 percent of tenants seeking one-bedroom apartments, 31 percent searching for two-bedroom units, and 22 percent interested in studios. In the villa and townhouse segment, 43 percent of tenants were looking for three-bedroom units, and 34 percent were specifically searching for four-bedroom or larger options.

Ownership and Rental Choices:

The report highlights the top areas attracting potential buyers and tenants. For apartment ownership, Dubai Marina, Downtown Dubai, Jumeirah Village Circle, Business Bay, and Palm Jumeirah emerged as leading areas. In contrast, for villa or townhouse ownership, Dubai Hills Estate, Arabian Ranches, Palm Jumeirah, Al Furjan, and Damac Hills were the most desired locations.

For rentals, Dubai Marina, Jumeirah Village Circle, Downtown Dubai, Business Bay, and Deira were popular choices for apartments. Meanwhile, Dubai Hills Estate, Al Barsha, Damac Hills 2, Jumeirah, and Umm Suqeim were preferred areas for renting villas or townhouses.

Existing Market Transactions:

The report indicates an 8 percent year-on-year increase in existing property transactions, surpassing 5,000 transactions. The value of these transactions experienced a significant surge of 31 percent, reaching AED21 billion, compared to AED15.7 billion in January 2023.

Growing Demand for Off-Plan Properties:

Notably, there is a growing demand for off-plan properties, with a 25 percent year-on-year volume growth, resulting in 6,000 recorded transactions. The value of these transactions also saw a substantial increase of 21 percent, reaching approximately AED15 billion, compared to AED12.2 billion in January 2023.

Outlook for 2024:

Cherif Sleiman, Chief Revenue Officer at Property Finder, expressed optimism about the market's trajectory, stating, “We are delighted to see January build on the great momentum from last year, revealing positive scope for sustained successes in 2024." Sleiman emphasized the increasing traction of off-plan properties, signaling a promising demand for new projects in the evolving real estate landscape.

Related: Invest in Dubai: Unlocking Opportunities in the City of Dreams 

Conclusion:

The robust performance of the Dubai real estate market in January 2024 reflects a buoyant start to the year. With a surge in sales, evolving tenant preferences, and growing demand for off-plan properties, the market appears poised for sustained success in the coming months. Stakeholders and property seekers can anticipate dynamic opportunities within this thriving real estate landscape, guided by evolving consumer choices and empowered by innovative proptech solutions.

Source: Dubai real estate market records over $9.6 billion in sales in January 2024