Dubai’s real estate sector has commenced the year 2024 with considerable strength, evidenced by an unprecedented sales figure of Dh35.4 billion in January. This noteworthy surge signifies a positive trajectory for the industry throughout 2024, propelled by sustained momentum from the previous year and an increasing preference for off-plan properties.
The off-plan segment has exhibited a remarkable year-on-year increase of approximately 25%, showcasing a consistent upward trend. January 2024 has set a new record with a substantial 27% growth compared to the same period in 2023, reaching Dh35.4 billion from Dh27.9 billion.
According to Property Finder’s data, there is a 17% year-on-year rise in recorded sales transactions, surpassing 11,000 transactions compared to 8,712 in January 2023. Cherif Sleiman, Chief Revenue Officer at Property Finder, emphasizes the optimistic outlook for 2024, emphasizing the growing demand for off-plan projects. As a leading proptech portal, they remain dedicated to monitoring evolving consumer choices to empower partners and property seekers.
The off-plan segment has experienced a 25% increase in volume, recording 6,000 transactions year-on-year, with values surging by approximately 21% to Dh15 billion compared to Dh12.2 billion in January 2023.
A report from Zazen Properties underscores the resilience of Dubai’s off-plan real estate sector, contributing to the impressive Dh455.7 billion in sales for the overall UAE market in 2023. Despite the completion of over 60,000 units, the off-plan sector is positioned to drive the overall market’s growth in 2024 and beyond, with demand expected to surpass supply.
In 2023, Dubai distinguished itself with a thriving tourism sector, witnessing a substantial 72.3% growth in sales values to Dh160.46 billion compared to Dh93 billion in 2022.
Property Finder’s research reveals specific trends in property preferences, with 58% of interested buyers seeking apartments and 42% interested in villas/townhouses. In the rental market, 80% of tenants preferred apartments, while 20% sought villas/townhouses.
Further analysis of the data unveils that 62.2% of tenants seeking apartments opted for furnished properties, while 36.1% preferred unfurnished options. Conversely, tenants seeking villa/townhouse rentals showed a preference for unfurnished units (57%) over furnished ones (42%).
Regarding property size, 36% of tenants were searching for one-bedroom units, 31% for two-bedroom apartments, and 22% for studios. In the villa/townhouse category, 43% of tenants looked for three-bedroom units, and 34% sought four-bedroom or larger options.
The preferred areas for owning apartments included Dubai Marina, Downtown Dubai, Jumeirah Village Circle, Business Bay, and Palm Jumeirah. For villas/townhouses, Dubai Hills Estate, Arabian Ranches, Palm Jumeirah, Al Furjan, and Damac Hills were the most desired locations.
In the rental market, the top areas were Dubai Marina, Jumeirah Village Circle, Downtown Dubai, Business Bay, and Deira. For villas/townhouses, Dubai Hills Estate, Al Barsha, Damac Hills 2, Jumeirah, and Umm Suqeim were popular choices.
Existing property transactions reflected an 8.0% year-on-year increase in volume, surpassing 5,000 transactions, with the transaction value witnessing a significant 31% surge to Dh21 billion compared to Dh15.7 billion in January 2023.
Published on February 5, 2024.
Source: https://www.khaleejtimes.com/business/dubais-realty-off-to-a-flying-start-with-record-dh35-4b-sales?_refresh=true&=true
