Dubai’s real estate sector saw the highest volume and value of transactions ever last month, according to data released on Thursday.
According to Property Finder’s market performance highlights for May, a total of 17,713 transactions were recorded, up 53% from May 2023. The value of these transactions increased by 38% to Dh46.5 billion.
The market saw a massive increase in volume, surpassing the previous peak achieved in March 2024 by 10% and exceeding the highest value achieved in December 2023 by 30%, according to data.
In the rental market, 78% of tenants wanted an apartment, with the remaining 22% considering villas or townhouses. Fifty-eight percent of tenants looking for apartments preferred furnished properties, while 40% chose unfurnished options. Tenants looking for villas/townhouses had a variety of options, with approximately 57% looking for unfurnished units and 42% opting for furnished properties. When looking for apartments, 35% preferred one-bedroom units, 33% two-bedroom apartments, and 19% studios. Those interested in villas/townhouses showed a fairly equal distribution, with 43% looking for three-bedroom units and 38% looking for four-bedroom or larger options.
Top apartment rental areas 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 choices for those looking to rent villas/townhouses.
Among property seekers interested in owning a home, 59% wanted an apartment and 41% wanted a villa/townhouse. Thirty-two percent of investors were looking for one-bedroom units, while 36 percent preferred two-bedroom apartments and 14 percent preferred studios. 40 percent of those looking for villas/townhouses wanted three bedrooms, while 46 percent wanted four bedrooms or more.
Dubai Marina, Downtown Dubai, Jumeirah Village Circle, Business Bay, and Palm Jumeirah were among the most popular ownership areas. The most popular areas for villa/townhouse ownership were ubai Hills Estate, Dubai South (Dubai World Central), Al Furjan, Arabian Ranches, and Palm Jumeirah. Following the development of Al Maktoum International Airport, there has been an increase in interest in Dubai South, indicating that mixed-use communities are becoming more popular.
In May, the off-plan market saw the highest volume and value of transactions ever, with 11,107 transactions. The previous peak was reached in April 2009 with 9,837 transactions, representing a 13% increase since then and indicating a positive trend for long-term investment in the country.
In terms of value, the off-plan market recorded transactions worth approximately Dh22.7 billion, surpassing the previous peak of September 2023 by 25%. The existing market continued to support Dubai’s real estate market, with volumes increasing by approximately 8.8 percent year on year and 6,606 transactions recorded. The value of these transactions increased by 21 percent year on year, reaching around Dh23.8 billion, up from 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.”
