UAE real estate sales up 16.8% in a year as January hits record: analysts

Originally published on Feb 08, 2024 | Arabian Business

UAE real estate sales hit record January figures, according to D&B Properties

UAE real estate figures hit January highs as property investors continue to express confidence in the region, according to D&B Properties.

The UAE real estate specialists have announced a significant surge in sales volume to start 2024.

In January 2024, the industry experienced a month-on-month (MoM) increase of 5.4 per cent and a year-on-year (YoY) growth of 16.8 per cent, marking the highest January figures in the history of the UAE real estate market.

UAE real estate sales

The surge in sales reflects the resilience and dynamism of the UAE real estate sector, even in the face of global uncertainties.

The market’s ability to adapt and thrive showcases the confidence of investors and homebuyers in the region.

According to D&B Properties, the UAE real estate sector saw month-on-month growth of 5.4 per cent as January witnessed an increase, underscoring the market’s agility and responsiveness to evolving economic conditions.

At the same time, the year-on-year growth of 16.8 per cent is a testament to the sustained appeal of the UAE real estate market, attracting both local and international investors.

The record-breaking sales volume achieved in January 2024 establishes a new benchmark for the UAE real estate sector, showcasing its strength and vitality.

Soliman Hossameldin, Director of Digital Marketing at D&B Properties, said: “This remarkable growth in sales reflects the attractiveness of the market and the trust that investors and homebuyers place in the stability and potential of the UAE.”

D&B Properties highlighted a surge in demand for off-plan properties in January, 2024.

There was a year-on-year increase of approximately 25 per cent in volume, it said, with more than 6,000 recorded transactions.

Values experienced a surge of around 21 per cent YoY, reaching roughly AED15bn ($4.1bn), compared to AED12.2bn ($3.3bn) in January 2023.

In contrast, existing property transactions revealed a YoY increase of approximately 8 per cent in volume, with more than 5,000 transactions.

The value of these transactions surged by 31 per cent YoY, touching AED21bn ($5.7bn), compared to AED15.7bn ($4.4bn) in January 2023.

The report found that a majority of those looking to purchase a property were on the lookout for an apartment (58 per cent), while 42 per cent preferred villas or townhouses.

This trend was much more obvious in the rental market, with 80 per cent of tenants searching for apartments, while 20 per cent were searching for villas/townhouses.

Approximately 36 per cent of tenants searched for one-bedroom units, 31 per cent for two-bedroom apartments, and 22 per cent for studios.

For villas/townhouses, 43 per cent of tenants were looking for three-bedroom units, while 34 per cent searched for four-bedroom or larger options.

Roughly 62.2 per cent of tenants seeking apartments were found to choose furnished properties, while 36.1 per cent were searching for unfurnished options.

In contrast, tenants who could afford villa/townhouse rentals revealed the opposite, with about 57 per cent seeking unfurnished units and 42 per cent looking for furnished options.

The Property Finder revealed that those looking to buy a one-bedroom apartment and a two-bedroom apartment were at 33 per cent and 36 per cent, respectively, while about 14 per cent were looking for studios.

The data for villas/townhouses showed that 40 per cent were primarily looking for three-bedroom units, while 44 per cent were searching for four-bedroom or larger options.

Top areas searched to own apartments were

Dubai Marina
Downtown Dubai
Jumeirah Village Circle
Business Bay
Palm Jumeirah

Meanwhile, Dubai Hills Estate, Arabian Ranches, Palm Jumeirah, Al Furjan, and Damac Hills were the most desired areas to own villas/townhouses.

Leading areas for rentals were:

Dubai Marina
Jumeirah Village Circle
Downtown Dubai
Business Bay

Dubai Hills Estate, Al Barsha, Damac Hills 2, Jumeirah, and Umm Suqeim were popular when it came to searches to rent villas/townhouses.