October 2024: A Record-Breaking Month for Dubai Real Estate Transactions

The Dubai real estate market set a remarkable precedent in October 2024, achieving the highest recorded transaction volume and value for any month. With a substantial increase in transactions—reaching 20,670 deals worth Dh61.5 billion—Dubai's real estate sector displayed robust growth and resilience, signaling a promising trajectory for the future.

Compared to October 2023, this year saw a 71% increase in transactions and a 56% rise in transaction value. This surge highlights a high demand among local and international buyers, backed by recent government initiatives, including the Dubai Real Estate Sector Strategy 2033. This strategy is focused on doubling the sector's GDP contribution and encouraging market transparency, thus boosting investor confidence. As Cherif Sleiman, Chief Revenue Officer at Property Finder, noted, Dubai's real estate sector is expanding in a healthy direction, driven by improved market data and tools that allow buyers, sellers, and investors to make informed decisions.

Ready and Off-Plan Market Trends:

In the existing, or "ready" market, October 2024 recorded a total of 7,140 transactions, marking a 27.5% increase from 5,598 transactions the same month in the previous year. This segment also achieved a record-breaking Dh33.7 billion in transaction value, a milestone that even surpassed the high previously recorded in July 2024 by 11%. These numbers reflect the growing preference for immediately available properties, allowing investors to capitalize on properties with immediate potential for rental income or occupancy.

The off-plan market, focusing on under-construction or pre-construction properties, experienced even more impressive growth. Year-on-year, this market saw a 109% increase in transaction volume, reaching approximately 13,530 transactions. Furthermore, the total value of these transactions skyrocketed to Dh27.7 billion—up by 102.4% from Dh13.7 billion in October 2023. These numbers reveal a strong confidence in Dubai's future, with investors showing interest in properties that will be completed in the coming years. Offplandxb properties often attract buyers looking for flexible payment options and potentially high returns upon project completion, making it a competitive segment of the real estate market.

Popular Areas for Property Ownership:

Certain neighborhoods stood out as top choices for buyers looking to invest in apartments or villas. For apartments, Dubai Marina led the way, followed by Downtown Dubai, Jumeirah Village Circle, Business Bay, and Palm Jumeirah. These areas, known for their luxurious lifestyle, breathtaking waterfront views, and connectivity to the rest of the city, appeal to a wide array of investors, from local buyers to international clients.

For those interested in villas and townhouses, areas like Dubai Hills Estate, Al Furjan, Palm Jumeirah, Dubai Land, and Mohammed Bin Rashid City remained highly sought after. These neighborhoods are celebrated for their spacious layouts, family-friendly environments, and access to amenities like golf courses, parks, and retail hubs. The trend reflects a growing preference for larger living spaces among buyers, especially families and those looking for longer-term residential options.

Buyer Preferences: Bedrooms and Furnishings:

According to Property Finder’s proprietary data, buyer preferences varied by property type. Among apartment seekers, a substantial 32% showed interest in one-bedroom units, with two-bedroom units closely following at 36%. Meanwhile, studios accounted for 14% of the searches, indicating a healthy demand across different apartment sizes. For villas and townhouses, 38% of prospective buyers were interested in three-bedroom units, while nearly half (49%) preferred properties with four or more bedrooms. This trend suggests that, although smaller apartment units continue to attract a significant number of buyers, larger properties are increasingly in demand, especially among families or those looking for more space.

Regarding furnishings, preferences differed by property type. Approximately 65% of tenants seeking apartments favored furnished units, while the remaining 34% leaned toward unfurnished options. This trend may indicate a growing population of expatriates or short-term residents who appreciate the convenience of furnished accommodations. However, in the villa and townhouse market, 53% of tenants preferred unfurnished options, suggesting that families or longer-term residents often choose to personalize their homes.

Rental Market Insights: Popular Areas and Tenant Preferences:

Dubai’s rental market has seen similar trends, with popular areas reflecting high tenant interest. Among those searching for apartments, areas like Dubai Marina, Downtown Dubai, Business Bay, Jumeirah Village Circle, and Jumeirah Lake Towers emerged as the top locations. These communities offer amenities like shopping centers, fitness facilities, and easy access to major city hubs, making them desirable locations for renters.
 
For villas and townhouses, tenants favored areas such as Jumeirah, Dubai Hills Estate, Damac Hills 2, Al Barsha, and Umm Suqeim. These neighborhoods offer spacious living options, green spaces, and community-focused facilities, ideal for families and long-term residents. Tenant preferences in these areas leaned towards three- and four-bedroom units, with 41% of renters seeking three-bedroom villas and 38% opting for properties with four bedrooms or more. This aligns with the demand for larger, family-friendly homes in well-established communities.

An Outlook on Dubai’s Real Estate Growth:

As Dubai's real estate market progresses into the final quarter of the year, analysts anticipate further expansion driven by both local and international investor confidence. The record-breaking numbers in October illustrate the market’s resilience and its capacity to meet the demand from both domestic and international buyers. Dubai’s growth can be attributed to its strategic initiatives to foster transparency, accessibility, and long-term sustainability in the real estate sector, which in turn, attract an increasing number of investors.

According to Cherif Sleiman, October was a testament to the upward momentum seen throughout the year in both the ready and off-plan segments. With the backing of Dubai’s leadership and strategic planning, the city’s real estate market appears set to maintain its growth trajectory. The Dubai Real Estate Sector Strategy 2033 aims to double the sector’s contribution to the country’s GDP through transparent processes and knowledge-sharing, encouraging investments and fostering an environment of trust. Property Finder, leveraging cutting-edge data tools, is playing a crucial role in supporting this vision by empowering users to make data-driven decisions and contributing to a more enriched market landscape.

Conclusion: The Future of Dubai Real Estate:

Dubai's real estate sector is experiencing a transformative phase, wioffplth increasing transaction volumes and values reflecting strong investor confidence. October 2024’s record-breaking performance underscores the city’s appeal as a top-tier global investment destination. Moving forward, Dubai’s commitment to innovation, transparency, and sustainable development will likely attract even more investors and residents, cementing its position as a leading player in the global real estate market. With ongoing strategic efforts and robust demand, Dubai's real estate sector is poised for continued success, shaping a prosperous future for investors, residents, and the city's economy at large.