Dubai Real Estate Achieves Record-Breaking Transactions In May 2024, Reveals Property Finder

MENA's property rental portal Property Finder has unveiled its market performance for May 2024, setting a new benchmark in Dubai’s real estate sector. The latest data indicates a significant surge in both the volume and value of transactions, marking May 2024 as a landmark month for the industry.

A total of 17,713 transactions were recorded, showing an impressive 53% increase from May 2023. The value of these transactions saw a 38% rise, reaching Dh46.5 billion, surpassing any previous records. This peak in activity not only demonstrates a robust growth trajectory but also eclipses the prior records set in March 2024 and December 2023 in terms of volume and value respectively.

Rental and Ownership Trends

The data revealed by Property Finder sheds light on the preferences of tenants and property seekers in Dubai. A majority, 78%, of tenants preferred apartments, with a notable inclination towards furnished options at 58%. In contrast, for villas and townhouses, 57% of tenants looked for unfurnished properties.

When broken down by bedroom count, the demand for one and two-bedroom apartments was quite balanced, reflecting the diverse needs of Dubai’s residents. 35% were looking for one bedroom units, while 33% expressed a preference for two bedroom apartments and 19% for studios. Those keen to select villas/townhouses showed signs of a fairly equal distribution with 43% looking for three bedroom units and 38% searching for four bedroom or larger options.

Top areas searched to rent apartments included Dubai Marina, Jumeirah Village Circle, Downtown Dubai, Business Bay and Jumeirah Lake Towers. While, Jumeirah, Dubai Hills Estate, Damac Hills 2, Umm Suqeim and Al Barsha were popular among those looking to rent villas/townhouses.

On the ownership side, apartments remained popular, with 59% of seekers eyeing this option. The interest was particularly high for two-bedroom units. Villas and townhouses also saw a healthy demand, especially for larger units with three or more bedrooms. About 32% investors were searching for one bedroom units, with 36% showing an inclination for two bedroom apartments and 14% for studios. Seekers for villas/townhouses included 40% searching for three bedroom units and 46% for four bedroom or larger options.

Areas such as Dubai Marina, Downtown Dubai, and Palm Jumeirah were among the most sought-after locations for potential owners, indicating a preference for well-established communities. Dubai Hills Estate, Dubai South (Dubai World Central), Al Furjan, Arabian Ranches, and Palm Jumeirah were the most desired areas to own villas/townhouses. Interest in Dubai South continues to grow, following the development of Al Maktoum International Airport, revealing growing considerations for mixed-use communities.

Off-plan vs. Existing Market Dynamics

The off-plan segment of Dubai’s real estate market in May 2024 achieved its highest volume and value of transactions to date, with 11,107 transactions recorded. This marked a significant increase from previous years, highlighting a growing confidence in long-term investments within the UAE. The existing market supported this upward trend, with a noticeable year-on-year increase in transactions and value, further cementing Dubai’s position as a thriving real estate hub.

Cherif Sleiman, Chief Revenue Officer at Property Finder, commented on the findings, stating, “May 2024 has once again confirmed the sustained growth of real estate in the UAE. The surge we witnessed in transactions underlines a heightened interest in community-centric living and the pursuit of long-term investments offering high returns.” He also highlighted the diversity in the market, attributing it to the range of new projects underway, which cater to various price points and ensure the inclusivity of upcoming communities.

The insights derived from Property Finder’s inaugural white paper and the performance data for May 2024 suggest a continuing upward trajectory for the UAE’s real estate sector. With a variety of properties catering to different preferences and budgets, Dubai remains a key destination for tenants and investors alike.