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In January 2024, Dubai’s real estate market demonstrated remarkable growth. Housing sales alone amounted to over $9.6 billion, marking a 27% increase compared to the previous year. The total number of transactions exceeded 11,000, up 17% year-on-year. In January 2023, the market recorded only 8,700 transactions. Below is an overview of the rental market and housing sales by categories.
Content:
- Increased demand for larger spaces
- Sales and rental market by areas
- Prospects of sustainable growth in 2024
Increased demand for larger spaces
In January, approximately 36% of tenants were seeking 1-bedroom apartments for rent, while around 31% actively searched for 2-bedroom apartments, and 22% were in search of studios. In the villa and townhouse segment, demand was divided, with 43% favouring 3-bedroom homes and 34% preferring houses with 4 bedrooms or more.
Sales trends follow a similar pattern overall. Approximately 33% of buyers actively sought 1-bedroom apartments, 36% preferred 2-bedroom options, and 14% were in search of studios. As for villas and townhouses, we observe a split of 40% in favour of 3-bedroom options and a pronounced increase to 44% for houses with 4 bedrooms or more.
Sales and rental market by areas
The most popular areas for buying apartments were:
- Dubai Marina;
- Downtown Dubai;
- Jumeirah Village Circle;
- Business Bay;
- Palm Jumeirah.
Among villa and townhouse buyers, the most popular areas were:
- Dubai Hills Estate;
- Arabian Ranches;
- Palm Jumeirah;
- Al Furjan;
- DAMAC Hills.
As for rentals, the most sought-after apartment destinations were:
- Dubai Marina;
- Jumeirah Village Circle;
- Downtown Dubai;
- Business Bay;
For villa and townhouse rentals, the leading areas were:
- Dubai Hills Estate;
- Al Barsha;
- DAMAC Hills 2;
- Jumeirah;
- Umm Suqeim.
Demand split: villas, townhouses, and apartments
Among those considering property purchase, 58% expressed interest in apartments, while 42% aimed to purchase villas or townhouses. Apartments dominated the rental market, with approximately 80% of all tenants searching for them, while only 20% showed interest in villas or townhouses.
How important is furnishing to tenants?
An important question for the market: what do tenants prefer when choosing between furnished and unfurnished properties? In January, approximately 62.2% of apartment tenants sought furnished options, while around 36.1% were interested in unfurnished alternatives. The situation was opposite for villas and townhouses, with about 57% preferring unfurnished homes, and 42% seeking furnished ones.
Prospects of sustainable growth in 2024
January continues the positive trend from 2023. We observe a rising trend indicating prospects for sustainable and healthy growth, at least in the first half of 2024. Particularly noteworthy is the increasing demand from buyers and investors for off-plan properties.
Strength of the secondary market
The secondary real estate market witnessed an annual transaction volume growth of 8%, with over 5,000 transactions concluded. The total revenue from transactions also increased, reaching $5.7 billion in January 2024, marking a 31% increase compared to January 2023.
Growing demand for off-plan properties
Demand for under-construction properties has significantly increased compared to the previous year. Approximately 6,000 transactions were concluded, a 25% increase from January 2023. Revenue from transactions also saw noticeable growth, exceeding $4 billion, marking a 21% increase year-on-year.
