In January 2024, the real estate market in Dubai witnessed a remarkable boom, as it saw record-breaking sales worth AED 5.4 billion.
This highlights a positive outlook for the sector in this year on the back of sustained momentum from last year and a rising demand for off-plan properties.
There was a 27% increase in January 2024 which saw it break records as compared to January 2023 when transactions were valued at AED 27.9 billion.
This highlights a consistently upward trend in the property sector in recent years. Data from Property Finder shows that sales transactions saw a 17% year-on-year increase.
The total number of transactions reached 11,000, while in January 2023, the number had stood at 8,712. Property Finder’s chief revenue officer, Cherif Sleiman said that January continued with last year’s momentum.
It highlights the positive scope for continued success in 2024. The off-plan market is gaining further traction and this promises demand for new projects.
Since Property Finder is a leading prptech portal, it is keeping an eye on the evolving choices of consumers and it aims to empower property seekers and partners to make informed decisions.
The off-plan sector
There was a greater demand recorded in the off-plan sector, as it saw volume see a 25% year-on-year increase with a total of 6,000 transactions.
There was a 21% year-on-year increase in values, as they reached almost AED 15 billion, as compared to January 2023 when they had been AED 12.2 billion.
A report from ZaZEN Properties revealed that the resilient off-plan sector of Dubai pushed up the sales of the overall UAE market to an impressive AED 455.7 billion in 2023.
Going forward, demand is expected to outstrip supply and the off-plan sector will bolster the overall growth of the market in 2024 and beyond.
Even though more than 60,000 units have been completed, the supply is still not enough to keep up with demand because of the rapid growth in Dubai’s population.
Dubai proved to be a notable bright spot last year, as the tourism sector flourished and boosted home demand.
This saw a 73% growth in sales value, which climbed to AED 160.46 billion in 2023 from 2022 when they had stood at AED 93 billion.
Data from Property Finder shows that almost 58% of the interested property buyers were looking for an apartment, while 42% of then were searching for townhouses/villas.
Meanwhile in the rental market, there were 80% tenants looking for apartments and 20% were prioritizing townhouses/villas.
The research of the portal showed that almost 62.2% of the tenants looking for apartments were prioritizing furnished properties, while 36.1% were seeking unfurnished ones.
An opposite trend was seen in tenants looking for villas/townhouses. 57% of them were looking for unfurnished options, while 42% sought furnished ones.
Around 36% of the tenants were looking for one-bedroom units, while 31% and 22% were looking for two-bedroom and studio apartments.
As for villas and townhouses, 43% were searching for three-bedroom units and 34% were looking for four-bedroom or larger ones.