May 2024 records new all time peak for Dubai’s real estate sector with 17,713 transactions worth AED 46.5 bn, reveals Property Finder
After the launch of its inaugural white paper titled ‘Opening Doors’, Property Finder, the leading property portal in the MENA region, has revealed its market performance highlights for May 2024, offering valuable insights into the real estate landscape.
According to Property Finder’s proprietary data, May 2024 marked a pivotal all time peak for Dubai’s thriving real estate sector, recording the highest volume and value of transactions ever. The total number of transactions recorded were 17,713, increasing by 53% compared to May 2023. The value of these transactions increased by 38%, touching AED 46.5 billion. The market saw a massive rise in volume surpassing the previous peak achieved in March 2024 by 10%, and crossing the highest value achieved in December 2023 by 30%.
Key data highlights:
Rental Trends:
- 78% of tenants were seeking an apartment, with the remaining 22% considering villas/townhouses.
- 58% of tenants looking for apartments preferred furnished properties, while 40% turned to unfurnished options.
- Tenants who sought villas/townhouses showed different choices, with around 57% searching for unfurnished units and 42% going for furnished properties.
- When searching for apartments, 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.
- Jumeirah, Dubai Hills Estate, Damac Hills 2, Umm Suqeim and Al Barsha were popular among those looking to rent villas/townhouses.
Ownership Insights:
- 59% of property seekers with an interest in ownership were looking for an apartment, while 41% were searching for villas/townhouses.
- 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.
- Popular areas for ownership were Dubai Marina, Downtown Dubai, Jumeirah Village Circle, Business Bay and Palm Jumeirah.
- 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.
The Total Number of Sales Transactions | The Total Value of The Sales Transactions |
Off plan vs Existing Market:
- In May 2024, the off-plan market recorded the highest volume and value of transactions ever, touching 11,107 transactions.
- The previous peak was achieved in April 2009 with 9,837 transactions, resulting in a 13% increase since then and revealing a positive trajectory for long term investment in the nation.
- In terms of value, the off-plan market achieved transactions worth around AED 22.7 billion, surpassing the highest peak last recorded in September 2023 by 25%.
- The existing market continued to support Dubai’s real estate market with a YoY increase of approximately 8.8% in volume and 6,606 transactions recorded.
- The value of these transactions experienced a notable increase of 21% YoY, touching approximately AED 23.8 billion, compared to AED 19.7 billion in May 2023.
Cherif Sleiman, Chief Revenue Officer at Property Finder, said: “May 2024 has once again proven that real estate growth in the UAE is here to stay. We have seen a remarkable spike this month in volume and value of transactions not just from YoY perspective, but also exceeding pre-pandemic numbers. The record breaking rise in off-plan investments this month shows a growing demand for community centric living and longer term investments with the potential of high returns. This is being met by several new projects in the pipeline, catering to a variety of price points ensuring upcoming communities are not limited to a certain level of affluence. This diversity in existing and off plan offering was recently revealed as a key contributor to why consumers consider the UAE for a future home, as seen within our inaugural White Paper launched at our second Annual PF Connect. We will continue to play our role in elevating property search that is in sync with today’s needs, and work cohesively with regulators and partners to give people all the information they need to make sound decisions in their home-seeking journey.”