Dubai’s real estate sector recorded the highest volume and value of transactions ever last month, data showed on Thursday.
According to Property Finder’s market performance highlights for May, a total of 17,713 transactions were recorded, increasing by 53 per cent compared to May 2023. The value of these transactions increased by 38 per cent, touching Dh46.5 billion.
The market saw a massive rise in volume surpassing the previous peak achieved in March 2024 by 10 per cent, and crossing the highest value achieved in December 2023 by 30 per cent, data showed.
In the rental market, 78 per cent of tenants were seeking an apartment, with the remaining 22 per cent considering villas/townhouses. Fifty eight per cent of tenants looking for apartments preferred furnished properties, while 40 per cent turned to unfurnished options. Tenants who sought villas/townhouses showed different choices, with around 57 per cent searching for unfurnished units and 42 per cent going for furnished properties. When searching for apartments, 35 per cent were looking for one bedroom units, while 33 per cent expressed a preference for two bedroom apartments and 19 per cent for studios. Those keen to select villas/townhouses showed signs of a fairly equal distribution with 43 per cent looking for three bedroom units and 38 per cent searching for four bedroom or larger options.
Top areas searched to rent 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/townhouses.
Among property seekers with an interest in ownership, 59 per cent were looking for an apartment, while 41 per cent were searching for villas/townhouses. Thirty two per cent investors were searching for one bedroom units, with 36 per cent showing an inclination for two bedroom apartments and 14 per cent for studios. Seekers for villas/townhouses included 40 per cent searching for three bedroom units and 46 per cent for four bedroom or larger options.
Popular areas for ownership were Dubai Marina, Downtown Dubai, Jumeirah Village Circle, Business Bay and Palm Jumeirah. ubai Hills Estate, Dubai South (Dubai World Central), Al Furjan, Arabian Ranches, and Palm Jumeirah were the most desired areas to own villas/townhouses. Interest in Dubai South continues to grow, following the development of Al Maktoum International Airport, revealing growing considerations for mixed-use communities.
In May, the off-plan market recorded the highest volume and value of transactions ever, touching 11,107 transactions. The previous peak was achieved in April 2009 with 9,837 transactions, resulting in a 13 per cent increase since then and revealing a positive trajectory for long term investment in the nation.
In terms of value, the off-plan market achieved transactions worth around Dh22.7 billion, surpassing the highest peak last recorded in September 2023 by 25 per cent. The existing market continued to support Dubai’s real estate market with a YoY increase of approximately 8.8 per cent in volume and 6,606 transactions recorded. The value of these transactions experienced a notable increase of 21 per cent YoY, touching approximately Dh23.8 billion, compared to Dh19.7 billion in May 2023.
Cherif Sleiman, chief revenue officer at Property Finder, said: “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. 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. 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.”