$10 Billion in Transactions Fuels Dubai Real Estate Growth in February
In a significant uptick, Dubai’s property sales surged by 35 percent on an annual basis, as per the latest findings from Property Finder.
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February 2024 witnessed a notable 27% increase in Dubai’s real estate sales transactions over the previous year. The month saw over 11,900 transactions, a leap from February 2023’s 9,371. Capitalizing on the momentum of 2023, transaction values soared to nearly AED36.6 billion ($10 billion), up by 35 percent from the year before, underscoring the robustness and vitality of the market.
Cherif Sleiman, Chief Revenue Officer at Property Finder, expressed enthusiasm over the sustained growth seen in February, forecasting a promising year ahead for the real estate sector. The month’s performance highlighted a strong surge in market activity, with substantial growth in both the number and value of transactions. This growth, particularly pronounced in off-plan property demand, showcases the market’s resilience and the growing opportunities for investors and homebuyers.
Most Sought-After Locations
– Top apartment searches include Dubai Marina, Downtown Dubai, Jumeirah Village Circle, Business Bay, and Palm Jumeirah.
– Villas/Townhouses are most sought after in Dubai Hills Estate, Al Furjan, Arabian Ranches, Palm Jumeirah, and Mohammed Bin Rashid City.
– Rental hotspots for apartments mirror the top sales searches, while Villas/Townhouses see high demand in Dubai Hills Estate, Damac Hills 2, Jumeirah, Al Barsha, and Umm Suqeim.
Detailed Insights into Dubai’s Real Estate Market
Interest from potential buyers shows a split, with 59 percent looking for apartments and 41 percent for Villas/Townhouses. On the rental side, 80 percent of queries are for apartments, with the remaining 20 percent for Villas/Townhouses.
There’s a clear preference for furnished apartments among 60.7 percent of tenants, while 36.6 percent opt for unfurnished ones. In contrast, those renting Villas/Townhouses show a preference for unfurnished units at 55.5 percent, with 42.6 percent seeking furnished ones.
One-bedroom units are sought after by 36 percent of tenants, followed by two-bedroom units at 31 percent, and studios at 22 percent. For Villas/Townhouses, three-bedroom units are most popular at 42 percent, with a significant interest in four-bedroom or larger units at 35 percent. Ownership trends mirror this, with a preference for one-bedroom (33 percent) and two-bedroom apartments (35 percent), and a strong demand for larger Villas/Townhouses.
The existing property market saw a 23 percent year-on-year increase in transactions, totaling over 5,500, with the transaction value jumping 46 percent to AED23.5 billion ($6.4 billion).
Off-plan properties witnessed a higher year-on-year growth in demand, with a 31 percent increase in transactions and an 18.5 percent rise in value, totaling around AED13 billion ($3.5 billion).
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Villa prices saw particularly strong growth, with capital values increasing by 33.4 percent year-on-year
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Dubai’s real estate market showed strong performance in the second quarter of 2024, with notable increases across the residential, office, and retail sectors, according to a new ValuStrat real estate report for Q2 2024.
Villa prices experienced particularly strong growth, with capital values rising by 33.4 percent year-on-year.
Haider Tuaima, Director and Head of Real Estate Research at ValuStrat said: “The Dubai real estate market has shown impressive growth and resilience in recent months. The ValuStrat Price Index for Residential Capital Values increased by 6.4 percent quarterly and 28.2 percent annually, reaching 178.2 points.
“Despite severe flooding caused by record rainfalls in April, the quick and effective response from developers and authorities helped to control the damage, ensuring that market activity and property valuations remained robust in the subsequent months.”
The office sector also performed well, with the VPI for office capital values surging by 31.7 percent annually and 9.4 percent quarterly, reaching 212.5 points—the highest quarterly increase in a decade.
In the retail sector, Emaar Properties reported 98 percent occupancy in their prime mall assets, while overall mall occupancy stood at 96 percent during the first quarter of 2024. The hospitality sector also saw growth, with total international guests reaching 8.12 million as of May 2024, a 9.9 percent increase compared to the same period last year. Hotel occupancy reached 81 percent, rising by 1.4 percent year-on-year.
Despite these positive indicators, Tuaima added, “The decline in transaction volumes calls for a closer examination of market dynamics as stakeholders navigate this evolving landscape.”
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
