Dubai: Dubai's property market continues to break records, with August seeing an impressive rise in both transactions and rental demand.
Fresh data from Property Finder, the MENA region's leading property portal, reveals a 37% surge in transactions compared to the same period last year. The total value of these deals reached AED 47.2 billion, setting a new benchmark, surpassing even the previous peak from May. This surge reflects growing confidence in the emirate's real estate sector.
Cherif Sleiman, Chief Revenue Officer at Property Finder, attributed the market's success to a combination of factors. He highlighted the increasing demand for affordable housing options from young families and the anticipated influx of ultra-high-net-worth individuals, both of which are driving the market forward.
Trends in existing and off-plan markets
In August 2024, Dubai’s real estate market reached unprecedented levels in both the existing and off-plan segments. The existing property market saw a record-breaking 5,684 transactions, marking a 14% increase compared to August 2023, which recorded 4,976 transactions. This surge reflects growing confidence in the resale market.
Meanwhile, the off-plan market experienced even more substantial growth, with transaction volumes jumping by an impressive 53% year-on-year, reaching approximately 10,479 transactions. The total value of these off-plan deals also saw a significant boost, rising 40% year-on-year to AED 23.3 billion, up from AED 16.7 billion in August 2023.
The rental market remains strong
Dubai’s rental market has seen apartments remain the most in-demand option, with a significant preference for furnished units. The report reveals that 79% of tenants were searching for apartments, while 21% were interested in villas or townhouses.
Among apartment seekers, 63% favored furnished options, compared to 36% who preferred unfurnished units. In contrast, villa and townhouse renters showed a stronger inclination for unfurnished properties, with 57% opting for this category, while 42% sought furnished homes.
One-bedroom apartments were the most popular, accounting for 35% of searches, followed closely by two-bedroom units at 33%, while 21% of tenants looked for studio apartments. In the villa/townhouse category, 41% of renters were searching for three-bedroom homes, with 38% seeking larger properties with four or more bedrooms.
Top locations for apartment rentals included Dubai Marina, Jumeirah Village Circle, Downtown Dubai, Business Bay, and Jumeirah Lakes Towers. Meanwhile, Dubai Hills Estate, Jumeirah, Damac Hills 2, Al Barsha, and Umm Suqeim were highly sought-after areas for tenants interested in renting villas or townhouses. This data highlights the diversity of rental preferences across the city, driven by lifestyle choices and location.
Ownership trends reflect growing demand
The ownership market in Dubai has seen robust activity, with apartments leading as the top choice for property seekers. According to the report, 59% of those interested in ownership were looking for apartments, while 41% sought villas or townhouses. Among apartment investors, 32% were drawn to one-bedroom units, 36% preferred two-bedroom options, and 14% were interested in studios. In the villa and townhouse segment, 39% of seekers were searching for three-bedroom homes, while 47% favored larger properties with four or more bedrooms.
Key areas attracting apartment buyers included Jumeirah Village Circle, Dubai Marina, Downtown Dubai, Business Bay, and Palm Jumeirah, while popular locations for villa and townhouse ownership were Dubai Hills Estate, Al Furjan, Palm Jumeirah, Damac Hills 2, and Dubai South. This trend highlights the increasing demand for both urban living and spacious family homes in prime locations.
Takeaway
Dubai's real estate market continues to demonstrate its strength and resilience. The surge in transactions, coupled with the growing demand for both rental and ownership properties, underscores the city's attractiveness as a real estate investment destination.