Dubai Property Transactions Reach Record High in July

According to recent data from Property Finder, Dubai recorded over 17,000 real estate transactions worth AED 55.5 billion in July 2024, setting a new record for the month. The market saw a substantial increase with a 59% rise in transaction volume and a 57% rise in value compared to July 2023. This uptrend aligns with May 2024’s previous peak, solidifying July as a pivotal month in the industry. Notably, ten key areas accounted for 51% of all transactions, including Al Barsha South Fourth, Business Bay, Marsa Dubai, Jebel Ali First, Wadi Al Safa, and Al Thayah Fifth.

Record-Breaking Market Performance

The existing market hit new highs with 8,400 transactions in July 2024, surpassing May’s 6,606 transactions by 27%. The ready market alone saw transactions worth AED 36 billion, a 23% increase from June 2024’s peak. The off-plan sector also flourished, with a 77% year-on-year increase in transaction volume, reaching around 9,300 deals. The value of these transactions climbed 54% year-on-year to approximately AED 19.4 billion, compared to AED 12.6 billion in May 2023.

Ownership Trends

Among potential property owners, 59% were interested in apartments, while 41% were looking at villas. One-bedroom units attracted 33.6% of investors, two-bedroom units 35.2%, and studios 13.7%. For villas, 39.8% of seekers were looking for three bedroom units, and 44.9% for four bedroom or larger options. Popular areas for ownership included Dubai Marina, Jumeirah Village Circle, Downtown Dubai, Business Bay, and Palm Jumeirah. For villas, Dubai Hills Estate, Al Furjan, Palm Jumeirah, and Akoya by Damac were the top choices.

Rental Preferences

80% of tenants sought for apartments, with the remaining 20% considering villas. Among apartment seekers, 60% preferred furnished properties, while 38% opted for unfurnished options. For villas, 57% of tenants favoured unfurnished units, and 42% preferred furnished properties.

When it came to apartment rentals, 37% of tenants were interested in one bedroom units, 31.7% in two bedroom units, and 20.9% in studios. For villas, 43.1% of tenants searched for three bedroom units, while 35.4% looked for four bedroom or larger options.

Top areas for renting apartments included Dubai Marina, Jumeirah Village Circle, Downtown Dubai, Business Bay, and Deira. For villas, popular areas were Jumeirah, Al Barsha, Dubai Hills Estate, Akoya Damac Hills, and Umm Suqeim.

Market Insights

Cherif Sleiman, Chief Revenue Officer at Property Finder, left a comment explaining that the UAE’s progress towards its ‘We the Emirates 2031’ vision marks an exciting period for the real estate market. The upward trend in transaction volume and value indicates a growing interest in long-term home ownership in Dubai. Both existing and off-plan projects are thriving, diversifying property demand and increasing returns on investment. Additionally, new developments outside central locations are gaining traction, thanks to developers’ efforts to maintain supply and nurture communities appealing to a global audience.