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According to the latest data from Property Finder, Dubai's real estate market witnessed high growth in May 2024. A staggering 17,713 deals were recorded during the month, reflecting a massive 53% year-on-year jump. The total worth of these transactions was a whopping AED 46.5 billion, growing 38% compared to May 2023.
This surpassed the former peak transaction volume of 16,095 achieved in March 2024 by an impressive 10%. Similarly, the value of AED 46.5 billion beat the past high of AED 35.8 billion from December 2023 by 30%. Cherif Sleiman, Chief Revenue Officer of Property Finder commented that realty growth in Dubai and the UAE is definitely here to stay, backed by this remarkable rise exceeding even pre-Covid levels.
Off-Plan Sales Touch Record High
The Dubai off-plan market fired on all cylinders in May 2024, clocking over 11,107 transactions worth AED 22.7 billion. This was the highest ever off-plan transaction count, bettering the previous peak of 9,837 deals in April 2009 by a margin of 13%. In value terms, the 25% year-on-year growth to AED 22.7 billion surpassed September 2023's earlier peak.
This showcases the intense demand and long-term investor confidence in Dubai's property sector. Sleiman attributed the boom to growing appetite for community living and higher yielding investments meeting new project launches across budget categories.
Existing Market Posts Strong Growth
While off-plan sales stole the limelight, the existing property segment continued its supportive role, witnessing 8.8% annual volume growth to 6,606 transactions. Value rose a sharp 21% to AED 23.8 billion from AED 19.7 billion in May 2023.
Rising Rental Demand for Apartments
When it comes to rentals, 78% of tenants searched for apartments versus 22% looking at villas/townhouses. Top rental locations were Dubai Marina, JVC, Downtown Dubai, Business Bay and JLT for apartments and Jumeirah, DEE, Damac Hills 2, Umm Suqeim and Al Barsha for villas.
Purchases Favor Apartments Over Villas
In terms of ownership, 59% of buyers wanted apartments against 41% wanting villas/townhouses. Peak apartment purchase locations included Dubai Marina , Downtown Dubai , JVC, Business Bay and Palm Jumeirah .
Conclusion
In closing, May 2024 demonstrated that Dubai's property market recovery is in full swing due to job and economic growth. Record-breaking transactions, and strong investor interest across all asset segments especially off-plan, point to sunshine ahead for the emirate's booming real estate sector.
