Dubai Real Estate Market Hits Record High in May 2024

Dubai’s real estate sector saw the highest volume and value of transactions ever last month. This data was released on Thursday. According to Property Finder’s market performance highlights for May, a total of 17,713 transactions were recorded. This represents a 53% increase from May 2023. Additionally, the value of these transactions increased by 38% to Dh46.5 billion.

Record-Breaking Transactions

The market experienced a massive increase in volume. It surpassed the previous peak achieved in March 2024 by 10%. Furthermore, it exceeded the highest value reached in December 2023 by 30%.

Rental Market Insights

In the rental market, 78% of tenants preferred apartments, while 22% opted for villas or townhouses. Fifty-eight percent of apartment seekers wanted furnished units. Meanwhile, 40% chose unfurnished options. For villas/townhouses, 57% looked for unfurnished units, and 42% desired furnished properties.

When it comes to apartment preferences, 35% of tenants preferred one-bedroom units, 33% sought two-bedroom apartments, and 19% wanted studios. Villa/townhouse seekers showed a fairly equal distribution. Specifically, 43% were looking for three-bedroom units, while 38% wanted four-bedroom or larger options.

Top apartment rental areas included Dubai Marina, Jumeirah Village Circle, Downtown Dubai, Business Bay, and Jumeirah Lake Towers. Popular villa/townhouse rental areas were Jumeirah, Dubai Hills Estate, Damac Hills 2, Umm Suqeim, and Al Barsha.

Ownership Market Trends

Among those interested in owning a home, 59% wanted an apartment, while 41% preferred a villa/townhouse. Thirty-two percent of investors looked for one-bedroom units, 36% for two-bedroom apartments, and 14% for studios. For villas/townhouses, 40% desired three-bedroom units. Meanwhile, 46% wanted four bedrooms or more.

Popular areas for apartment ownership included Dubai Marina, Downtown Dubai, Jumeirah Village Circle, Business Bay, and Palm Jumeirah. For villa/townhouse ownership, Dubai Hills Estate, Dubai South (Dubai World Central), Al Furjan, Arabian Ranches, and Palm Jumeirah were top choices. The development of Al Maktoum International Airport has increased interest in Dubai South. This indicates a growing preference for mixed-use communities.

Off-Plan Market Surge

In May, the off-plan market saw the highest volume and value of transactions ever, with 11,107 transactions. This surpasses the previous peak in April 2009 by 13%. Consequently, this indicates a positive trend for long-term investment. The off-plan market's value reached approximately Dh22.7 billion. This surpasses the previous peak of September 2023 by 25%.

Existing Market Performance

The existing market continued to support Dubai’s real estate sector. Volumes increased by approximately 8.8% year on year, recording 6,606 transactions. Additionally, the value of these transactions rose by 21% year on year. It reached around Dh23.8 billion, up from Dh19.7 billion in May 2023.

Expert Insight

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. This ensures 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. This was 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.”