Dubai real estate boom enters 2024 with record $9.6bn sales

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The Dubai real estate market has experienced a significant boom in January 2024, with record-breaking sales totaling AED35.4 billion ($9.6 billion). This marks a substantial increase of 27% compared to January of the previous year. Property Finder's data indicates a 17% year-on-year increase in recorded sales transactions, with over 11,000 transactions compared to 8,712 in January 2023.

Key trends and insights from the report include:

1. **Property Types:**
  - 58% of interested property buyers were searching for apartments, while 42% were looking for villas/townhouses.
  - In the rental market, 80% of tenants were looking for apartments, with 20% searching for villas/townhouses.

2. **Furnished vs Unfurnished:**
  - Approximately 62.2% of tenants seeking apartments preferred furnished properties, while 36.1% were searching for unfurnished options.
  - For villa/townhouse rentals, 57% were looking for unfurnished units, and 42% preferred furnished options.

3. **Unit Sizes:**
  - In demand for apartments, 36% of tenants searched for one-bedroom units, 31% for two-bedroom apartments, and 22% for studios.
  - For villas/townhouses, 43% of tenants were looking for three-bedroom units, and 34% were searching for four-bedroom or larger options.

4. **Ownership vs Rental Choices:**
  - Top areas searched to own apartments included Dubai Marina, Downtown Dubai, Jumeirah Village Circle, Business Bay, and Palm Jumeirah.
  - The most-desired areas to own villas/townhouses were Dubai Hills Estate, Arabian Ranches, Palm Jumeirah, Al Furjan, and Damac Hill.
  - Popular rental areas were Dubai Marina, Jumeirah Village Circle, Downtown Dubai, Business Bay, and Deira. For villas/townhouses, popular rental areas included Dubai Hills Estate, Al Barsha, Damac Hills 2, Jumeirah, and Umm Suqeim.

5. **Market Performance:**
  - Existing property transactions saw a year-on-year increase of approximately 8% in volume, with more than 5,000 transactions.
  - The value of these transactions surged by 31% year-on-year, reaching AED21 billion ($5.7 billion).
  - Off-plan properties showed increased demand, with a year-on-year increase of approximately 25% in volume and 6,000 recorded transactions. Values surged by around 21% year-on-year, reaching roughly AED15 billion ($4.1 billion).

6. **Historical Comparison:**
  - January 2024 broke records with AED35.4 billion in real estate transactions, compared to AED27.9 billion in January 2023, showcasing a consistent upward trend in recent years.

The report suggests a positive outlook for Dubai's real estate sector in 2024, with sustained momentum from the previous year and a growing demand for off-plan properties.


Source from Arabian Business