DUBAI REAL ESTATE REACHES ALL-TIME HIGH IN MAY

Dubai’s real estate market achieved unprecedented milestones in both transaction volume and value last month, according to Leap's latest market performance highlights for May. A total of 17,713 transactions were recorded, marking a 53% increase compared to May 2023. The value of these transactions soared by 38%, reaching AED 46.5 billion. This great volume surpassed the previous high set in March 2024 by 10%, while the value exceeded December 2023’s peak by 30%.

In the rental sector, apartments were the preferred choice for 78% of tenants, with 22% opting for villas or townhouses. Among apartment seekers, 58% preferred furnished properties, while 40% favoured unfurnished ones. For villas and townhouses, 57% looked for unfurnished units, and 42% for furnished ones. The demand for apartments was primarily for one-bedroom units (35%), two-bedroom units (33%), and studios (19%). For villas and townhouses, 43% of tenants sought three-bedroom units, and 38% desired four-bedroom or larger properties.

Top areas for renting apartments included Dubai Marina, Jumeirah Village Circle, Downtown Dubai, Business Bay, and Jumeirah Lake Towers. For villas and townhouses, Jumeirah, Dubai Hills Estate, Damac Hills 2, Umm Suqeim, and Al Barsha were the most popular.

In the ownership market, 59% of property seekers were interested in apartments, while 41% sought villas or townhouses. Investors showed a preference for two-bedroom apartments (36%), one-bedroom units (32%), and studios (14%). For villas and townhouses, 40% searched for three-bedroom units, and 46% for four-bedroom or larger properties.

Popular areas for buying apartments were Dubai Marina, Downtown Dubai, Jumeirah Village Circle, Business Bay, and Palm Jumeirah. Desired locations for owning villas and townhouses included Dubai Hills Estate, Dubai South (Dubai World Central), Al Furjan, Arabian Ranches, and Palm Jumeirah, with Dubai South gaining interest due to the development of Al Maktoum International Airport.

May saw the off-plan market reaching new heights, with 11,107 transactions recorded, a 13% increase from the previous peak in April 2009. The value of off-plan transactions hit AED 22.7 billion, surpassing the September 2023 peak by 25%. The existing market also showed strong support with a year-on-year volume increase of 8.8%, totaling 6,606 transactions. The value of these transactions grew by 21% year-on-year, reaching approximately AED 23.8 billion, up from AED 19.7 billion in May 2023.

Cherif Sleiman, Chief Revenue Officer at Leap, said that May 2024 has demonstrated the enduring growth of the UAE’s real estate sector. They have seen remarkable increases in transaction volume and value, surpassing even pre-pandemic figures. The record-breaking rise in off-plan investments highlights the growing demand for community-centric living and long-term investments with high returns. New projects catering to various price points are meeting this demand, ensuring diverse community offerings. This variety is a key reason why many consider the UAE for their future home. Leap remains committed to providing essential information to support sound decision-making in the home-seeking journey.

Original article reference: Khaleej Times.