In a remarkable turn of events, real estate sales transactions in Dubai witnessed an astonishing surge of over 27 percent in February, soaring to 11,900 deals from the 9,371 recorded in February 2023. This surge underscores the robust and sustained buoyancy within the market, projecting a promising outlook for investors and stakeholders alike.
Driving Factors Behind the Surge
Building upon the positive trajectory set in 2023, the value of transactions experienced a staggering upswing, reaching nearly Dh36.6 billion. This marks an impressive 35 percent increase compared to the same period last year, signifying the resilience and dynamism inherent within Dubai’s real estate landscape. Insights from Property Finder, a leading property portal in the MENA region, shed light on these encouraging trends.
Emerging Trends in Rental Preferences
The research conducted by Property Finder reveals intriguing insights into the rental preferences shaping Dubai’s real estate market. Two-bedroom apartments have emerged as the most sought-after rental option, constituting 35 percent of total searches. Close behind are one-bedroom apartments, commanding 33 percent of the market’s attention.
Continued Momentum into 2024
The momentum witnessed in January 2024 further solidified the positive outlook for Dubai’s real estate sector. With record-breaking sales totaling Dh35.4 billion, the market witnessed a remarkable boom, driven by sustained momentum from the previous year and a burgeoning demand for off-plan properties. January saw a substantial increase of 27 percent compared to January 2023, showcasing a consistent upward trajectory.
Insights into Transaction Volumes and Values
February witnessed a notable surge in existing property transactions, recording a year-on-year increase of approximately 23 percent in volume, with over 5,500 transactions. The value of these transactions surged by an impressive 46 percent year-on-year, reaching Dh23.5 billion. Off-plan properties also demonstrated a surge in demand, with transaction volumes increasing by 31 percent year-on-year, totaling 6,385 transactions. The value of these transactions experienced a significant uptick of approximately 18.5 percent year-on-year, reaching around Dh13 billion.
Expert Perspectives on Market Dynamics
Cherif Sleiman, Chief Revenue Officer at Property Finder, underscored the sustained momentum witnessed in February, indicating optimistic prospects for continued success throughout 2024. Sleiman highlighted a remarkable surge in both transaction volume and value, reaffirming the resilience and dynamism of the industry. Notably, off-plan transactions exhibited even higher demand, with a greater year-on-year increase in volume.
Rental Market Dynamics
In the rental market, the majority of tenants, approximately 80 percent, are searching for apartments, while the remaining 20 percent prefer villas or townhouses. Preferences regarding furnished versus unfurnished properties vary significantly between apartment and villa/townhouse seekers, reflecting diverse tenant needs and preferences.
Preference for Property Sizes
The research conducted by Property Finder also sheds light on the preferences for property sizes among tenants and home seekers. Approximately 36 percent of tenants seeking apartments prefer one-bedroom units, while 31 percent opt for two-bedroom apartments, and 22 percent search for studios. Conversely, in the villa/townhouse segment, 42 percent of tenants prefer three-bedroom units, while 35 percent seek four-bedroom or larger options.
Desirable Areas for Property Ownership and Rental
Top areas for property ownership include Dubai Marina, Downtown Dubai, Jumeirah Village Circle, Business Bay, and Palm Jumeirah. On the other hand, Dubai Hills Estate, Al Furjan, Arabian Ranches, Palm Jumeirah, and Mohammed bin Rashid City emerge as the most desired areas for owning villas or townhouses. In terms of rentals, popular areas include Dubai Marina, Jumeirah Village Circle, Downtown Dubai, Business Bay, and Deira, with Dubai Hills Estate, Damac Hills 2, Jumeirah, Al Barsha, and Umm Suqeim leading the searches for villas or townhouses.
In conclusion
the unprecedented surge in real estate sales transactions in Dubai underscores the resilience and strength of the market, fueled by positive trends and promising opportunities. As the sector continues to thrive, stakeholders can anticipate continued growth and prosperity in the dynamic landscape of Dubai’s real estate market.f you require further details or have any inquiries regarding the insights provided in the above article, please do not hesitate to reach out to us at Noumou Properties. Our team is dedicated to providing comprehensive information and assistance to ensure you stay informed and make well-informed decisions in Dubai’s dynamic real estate market.
