Real estate activity in Dubai continued to see significant growth in April, according to a report by Property Finder. Sales transactions rose by more than 45% last month.
The real estate platform recently published its market performance highlights for April 2024, providing valuable insights into the real estate landscape.
In April 2024, there was an increase of over 45.11% in registered sales transactions, an increase of 11,607 compared to 7,999 in April 2023.
Growth in Dubai real estate
Growth in the first quarter of 2024 was boosted by a notable increase in transaction value, which reached almost AED 32 billion ($8.7 billion), representing a year-on-year increase of 21.13%.
Growth in demand for apartments
According to Property Finder data, 58% of prospective home buyers were looking for apartments, while 42% were looking for villas or townhouses. On the other hand, 79% of tenants were looking for apartments, while 21% preferred a villa or townhouse. This shows an increase in demand for apartments compared to previous months, when villas attracted more interest.
Sustained momentum for larger villas
Similar to previous months, demand for villas showed a growing interest in three-bedroom units in particular, while 37% of property seekers were looking for options with four or more bedrooms to rent. For those more inclined towards villa ownership, 41% were looking for three bedroom units, while 45% were looking for options with four or more bedrooms.
Demand for furnished apartments is high
Around 64% of those looking for a home preferred furnished properties with finished interiors, while 33% were looking for unfurnished options. In contrast, those looking for villas or townhouses had different preferences: Some 55% were looking for unfurnished units and 44% for furnished options.
Persistent preference for large apartments
Among those interested in rental apartments, 36% of tenants were interested in one-bedroom apartments, while 32% expressed a preference for two-bedroom apartments and 21% for studios. In contrast, 33% of investors or owner-occupiers were looking for one-bedroom apartments, while 36% expressed a preference for two-bedroom apartments and 14% were looking for studios.
Focus on new areas
Due to the planned relocation of airport operations in Dubai, there was a significant increase in interest in areas such as Dubai South (Dubai World Central), as well as Dubai Hills Estate, Palm Jumeirah, Arabian Ranches and Al Furjan. Dubai Marina, Downtown Dubai, Jumeirah Village Circle, Business Bay and Palm Jumeirah remained attractive for apartment seekers.
The most frequently searched areas for rental apartments were
- Dubai Marina
- Jumeirah Village Circle
- Dubai city center
- Business Bay
- Deira
- Dubai Hills Estate, Damac Hills 2, Jumeirah, Al Barsha and Dubai Land were popular choices when looking for villas or townhouses.
Continued support from the existing market
The volume of transactions for existing properties rose by 6.45% year-on-year to 4,404 transactions. The value of these transactions amounted to approximately AED 18.1 billion ($4.9 billion).
Off-plan interest flourishes
Off-plan transactions, which promise attractive returns, continued to grow with a year-on-year increase in volume of approximately 86.51%, with a total of 7,203 transactions and a year-on-year increase in value of 77.09%, reaching approximately AED 13.9 billion ($3.8 billion), compared to AED 7.8 billion ($2.1 billion) in April 2023.
It is promising that interest in off-plan options continues to grow given the variety of offerings, solid pipeline and potentially high returns. The latest regulatory changes, which include the requirement to obtain a permit for the first residential unit in order to advertise such properties, will have a further positive impact on the quality of supply. In addition, the strength of the real estate market is evident despite ongoing changes in demand.
The latest data shows an interesting shift in consumer preferences towards an increased appetite for housing among potential homeowners. This is in contrast to the demand for villas that we have seen since the pandemic and especially in recent months. We expect the market to remain dynamic following announcements such as the relocation of operations from Dubai International Airport to Al Maktoum International Airport, which will trigger new demand in the developing areas.
