Dubai’s real estate market witnessed a remarkable surge in January 2024, reaching a historic high of Dh35.4 billion in sales. This bodes well for the sector’s outlook in 2024, fueled by a growing demand for off-plan properties and the sustained momentum from the previous year.
The unprecedented sales figure in January 2024 marked a notable 27% increase from Dh27.9 billion recorded in January 2023, indicating a consistent upward trend over recent years.
Property Finder’s data revealed a 17% year-over-year rise in recorded sales transactions, exceeding 11,000 compared to 8,712 in January 2023.
Cherif Sleiman, Chief Revenue Officer at Property Finder, emphasized the continuation of positive momentum into 2024, particularly noting the increasing popularity of off-plan properties, which signifies robust demand for new projects. Sleiman highlighted the company’s commitment to monitoring evolving consumer preferences, aiming to provide enhanced support for partners and property seekers within the dynamic real estate market.
Off-plan transactions saw a substantial uptick, with around 6,000 recorded transactions and a volume surge of approximately 25% year over year. The value of these transactions increased by about 21% year over year to nearly Dh15 billion from Dh12.2 billion in January 2023.
A report from Zazen Properties highlighted the pivotal role of Dubai’s thriving off-plan market in propelling the UAE’s overall real estate market to Dh455.7 billion in sales in 2023. Looking ahead, the demand is expected to surpass supply, underscoring the off-plan sector’s vital contribution to market growth in 2024 and beyond, despite the completion of over 60,000 units.
Dubai’s exceptional performance in 2023, fueled by a buoyant tourism sector, saw sales values skyrocket to Dh160.46 billion, marking a substantial 72.3% increase from Dh93 billion in 2022.
Property Finder’s data also shed light on the preferences of prospective buyers and renters. Approximately 58% of potential buyers were interested in apartments, while 42% sought villas or townhouses. In the rental market, 80% of tenants were looking for apartments, while 20% preferred villas or townhouses.
The research revealed nuanced preferences among tenants, with 62.2% favoring furnished apartments and 36.1% opting for unfurnished ones. Conversely, the majority of tenants seeking villas or townhouses (57%) preferred unfurnished units.
In terms of property size, one-bedroom units were most sought after by both buyers (36%) and renters (36%). However, there were variations in preferences for larger units, with buyers leaning towards two-bedroom apartments (36%) and renters preferring three-bedroom villas/townhouses (43%).
Popular locations for apartment ownership included Dubai Marina, Downtown Dubai, and Jumeirah Village Circle, while Dubai Hills Estate and Arabian Ranches were top choices for villas and townhouses. In the rental market, Dubai Marina and Jumeirah Village Circle were sought after, along with Dubai Hills Estate and Al Barsha for villas or townhouses.
Overall, property transactions in January 2024 witnessed an 8.0% increase in volume year over year, with the value rising by 31% annually to reach Dh21 billion from Dh15.7 billion in January 2023.
