Introduction

The Dubai real estate market has started 2024 with a bang, recording over $10 billion in sales transactions in February 2024 alone. This represents a massive 27% increase compared to February 2023.

In this in-depth blog post, we will analyze the February 2024 Dubai Property Market performance in detail, exploring the key things to note.

Key February 2024 Dubai Real Estate Highlights

Existing vs. Off-Plan Properties

Both existing and off-plan properties saw significant growth in February 2024:

• Existing property sales: Volume up 23% year-on-year to 5,500 transactions; Value up 46% to AED 23.5 billion
• Off-plan property sales: Volume up 31% year-on-year to 6,385 transactions; Value up 18.5% to AED 13 billion

This indicates strong demand across both ready and under-construction properties. Off-plan sales showed particularly robust growth in volume driven by new project launches.

Apartments vs. Villas

In the sales market, apartments continued to see greater demand over villas/townhouses:

• 59% of homebuyers searched for apartments vs. 41% for villas/townhouses
• The rental market told a different story:
• 80% of tenants searched for apartments vs. 20% for villas/townhouses

This aligns with the fact that apartments dominate Dubai’s rental landscape, while villas and townhouses cater more to the sales market.

Furnished vs. Unfurnished

• 60.7% of tenants searched for furnished apartments while 36.6% looked for unfurnished units
• 55.5% of villa/townhouse tenants preferred unfurnished units while 42.6% wanted furnished
• Families and long-term residents often look for unfurnished villas, while expat renters favor ready-to-move-in furnished apartments.

Unit Sizes

In the rental market:

• 36% of tenants searched for 1-bed apartments
• 31% searched for 2-bed apartments
• 22% searched for studios
• 42% searched for 3-bed villas/townhouses
• 35% searched for 4-bed+ villas/townhouses

For buyers:

• 33% searched for 1-bed apartments
• 35% searched for 2-bed apartments
• 15% searched for studios
• 40% searched for 3-bed villas/townhouses
• 44% searched for 4-bed+ villas/townhouses

The demand distribution reflects Dubai’s high percentage of single expat renters and families opting for larger-owned units. 2-bed units remain popular across both sale and rental markets.

Surging Sales Volumes Point To Strong Market Fundamentals

February marked the strong sales activity in Dubai real estate. Both secondary (ready) and off-plan markets saw a significant uptick in transactions.

Ready properties changed hands over 5,500 times in February 2024, a 23% annual jump. Total sales value in this segment surged 46% to reach $6.4 billion. New off-plan launches remained attractive to investors, with sales volumes rising 31% to over 6,300 transactions worth $3.5 billion.

This positive momentum has surprised many experts and analysts, who had projected demand cooling off this year. However, aggressive government reforms, new business incentives, a thriving economy and the upcoming Expo 2020 are convincing domestic and foreign investors alike to continue pumping funds into Dubai real estate.

Christopher Hobden, Head of Strategic Consultancy at Cavendish Maxwell explains: “Dubai is seen as a haven in the region, with buyers from Saudi Arabia, India, China and the UK in particular identifying opportunities. Improving oil prices, higher commodity rates, stock market gains and strong corporate earnings have further encouraged investors.”

Apartments Leading The Charge As Prices Rise Rapidly

Applicant demand in February remained heavily skewed towards apartments, which accounted for 59% of all sales transactions. This asset class saw prices rise by nearly 14% year-on-year to an average of $353,000. Robust interest from occupiers – especially expat professionals moving to Dubai – is fuelling apartment demand.

Even as volumes fell 55% annually, villas continued to see strong interest from end-users. The top end of the market above $5 million was particularly active. For instance, The Beachfront Villas By Ellington Wadi Al Safa 3 sold for AED 40 million, and Mohammed Bin Rashid Al Maktoum City- District One Phase 1, MBR District 1 went for AED 65 million.

The surge in ultra-luxury sales underscores rising interest from high-net-worth individuals, who increasingly view Dubai as a favourable investment destination. Total sales of homes valued over $10 billion (Dh36.6 billion) in February 2024.

Dubai Marina And Downtown Dubai Top Buyer Interest

Regarding location, Dubai Marina continues to be the most popular neighborhood for apartments. Some of the top-selling projects here included IL Primo, 6th Street, Cayan Cantara and Ocean Heights. The area’s bustling waterfront lifestyle, proximity to offices and amenities and choice of unit types make it a perennial favorite.

Downtown Dubai – home to the iconic Burj Khalifa – took the second spot driven by new off-plan launches such as Act One | Act Two by EMAAR . Ready projects like The Residences at Marina Gate also saw a strong uptake.

The top locations for villa/townhouse sales were Dubai Hills Estate , Arabian Ranches, DAMAC Hills , Palm Jumeirah and Emirates Living. New projects like hideaway villas and townhouses in DAMAC Lagoons attracted buyer interest, as did premium golf courses in adjacent communities.

Top Expensive Projects Sold In Dubai Real Estate Market In Feb 2024.

Expo 2020, Visa Reforms To Sustain Positive Momentum

Industry experts are optimistic that the positive start to the year will continue, aided by structural drivers like Expo 2020. An expected 25 million visitors for the 6-month event will support hospitality, retail and property sectors.

The UAE government’s long-term residency golden visas boost demand equally as more foreigners look to purchase rather than rent. The strong pipeline of announced projects for the next 3-4 years will also prevent inventory shortages or oversupply.

Steven Bond, Managing Director of Real Estate broking firm Betterhomes, remarks: “The Expo will play a major role in sustaining momentum. We could see the maximum action in areas close to the event site like Dubai South, Arjan, and Dubai Investment Park.”

Key Factors Driving Long-Term Positivity

While short-term speculation may be risky, Dubai real estate does offer compelling advantages for long-term investors:

• Low transaction and holding costs compared to other global cities
• Significant upfront government incentives for expat investors 
• Strong legal framework enforcing title deed and property rights. 
• High rental yields between 5-9% for well-located apartments
• Long-term residence visas create demand from occupiers
• Ongoing infrastructure upgrades across the Emirate
• Strict regulatory environment with curbs on overbuilding
• Dubai’s status as the Middle East’s financial and business hub

Based on these structural drivers, Dubai is likely to remain on the radar of property investors from the GCC and key global markets. Sustained buyer activity – from budget apartments to ultra-luxury villas – highlights continued faith in the market.

Conclusion

In closing, the Dubai property sector has made an impressive start to 2024, notching up over $10 billion in sales during February alone. While it is unrealistic to expect this blistering pace to continue every month, the strength of fundamentals suggests there is still fuel for further growth this year.

Apartment prices are already up 14% annually, with areas like Dubai Marina and Downtown seeing the most traction. New projects continue being launched across the spectrum, from master-planned communities by top developers.

Are you ready to attain unparalleled luxury living in Dubai? Contact Top Luxury Property to acquire the keys to your dream home. The finest addresses await – let the home search begin!