Real estate sales transactions in Dubai recorded a more than 27 per cent surge in February, or an increase to 11,900 deals from 9,371 posted in February 2023, underscoring the sustained market buoyancy this year.
“Further leveraging the positive trends from 2023, the value of transactions experienced a remarkable upswing, reaching almost Dh36.6 billion and marking an increase of 35 per cent compared to the same month in 2023, highlighting the strength and dynamism of the real estate market,” Property Finder, a leading property portal in the Mena region, said.
The portal’s research found that two-bedroom apartments emerged as the most sought-after rental option, comprising 35 per cent of total searches, closely followed by one-bedroom apartments, which accounted for 33 per cent.
In January 2024 too, with record-breaking sales totalling Dh35.4 billion, Dubai’s real estate market witnessed a remarkable boom signifying a positive outlook for the sector in 2024 on the back of a sustained momentum from the previous year and a growing demand for off-plan properties. January broke records with a substantial increase of 27 per cent compared to Dh27.9 billion in January 2023, showcasing a consistent upward trend in recent years.
In February, existing property transactions recorded a year-on-year increase of approximately 23 per cent in volume, with over 5,500 transactions. The value of these transactions surged by 46 per cent year-on-year, touching Dh23.5 billion, compared to Dh16 billion in February 2023, Property Finder said in its report.
Off-plan showed more demand, while the existing property transactions had a year-on-year increase of 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 Dh13 billion, compared to Dh11 billion in February 2023.
Cherif Sleiman, chief revenue officer at Property Finder, said February maintained the momentum established in January, indicating optimistic prospects for ongoing success throughout 2024.
Sleiman said there was a remarkable surge in the real estate market in February 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.”
The research found that some 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. Conversely, 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.
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 are 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.
According to the portal, 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 investors 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,” it said.
Top areas searched to own apartments included Dubai Marina, Downtown Dubai, Jumeirah Village Circle, Business Bay, and Palm Jumeirah. Dubai Hills Estate, Al Furjan, Arabian Ranches, Palm Jumeirah and Mohammed bin Rashid City were the most desired areas to own villas/townhouses. Leading areas for rentals were Dubai Marina, Jumeirah Village Circle, Downtown Dubai, Business Bay and Deira. Dubai Hills Estate, Damac Hills 2, Jumeirah , Al Barsha and Umm Suqeim were popular when it came to searches to rent villas/townhouses.