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Dubai real estate: what happened in February 2024

Results of February 2024

At the beginning of a new month, we always sum up the results of the previous one. In this article we will talk about the increase in the volume of closed real estate transactions, and also discuss the dynamics of growth in the sale and rental value of liquid properties.

A sharp increase in the number of sales

February of this year again demonstrated a significant increase in transactions related to the purchase of both real estate under construction and residential properties that have already been put into operation.

The sales volume of already built apartments increased by 23%, and the number of transactions involving residential premises under construction increased by 31%. On an annual basis, February showed a fairly high growth rate: for the period from March 1, 2023 to March 1, 2024, the total number of real estate transactions in Dubai increased by 27%, from 9,371 transactions to 11,900 transactions. This circumstance indicates the continued popularity of objects in the primary and secondary markets.

Apartments are in greatest demand. This is the format of residential premises chosen by 59% of investors. It is also worth paying attention to the fact that 30% of buyers choose one-bedroom apartments, 35% of investors prefer two-room apartments, and only 15% choose studios.

Increase in the sales value of residential properties

Apartments are the most popular real estate in Dubai. It is popularity that influences the cost of such residential premises.

In February 2024, this asset class increased in value by 14% and today its average value is around $353,000. Despite the lower volume of popularity, villas also show significant growth in value, with their price increasing by 24% year-on-year.

Rising prices for rental residential real estate

The cost of renting residential real estate in Dubai directly depends on the price segment. The greatest growth was recorded in relation to premium properties (up to 21%). The budget segment grew by an average of 16%, and the mid-range segment by 15.5%.

The most popular areas for budget property rentals are Al Nahda and Mirdif. Premium apartments are most often rented in residential complexes located in Dubai Marina and Dubai Hills Estate.

According to experts, in 2024 the cost of short-term rentals will increase by 20%, long-term - by 15%. This circumstance is due to the increase in the population of Dubai.

According to the Dubai Master Plan 2040, the emirate's population is expected to grow to 5.8 million people. Therefore, the demand for real estate and investor interest in housing will grow steadily.

The most popular rental properties are one-bedroom apartments: they are chosen by 36% of tenants. Second place is occupied by double bedrooms: 31% of tenants move into such residential premises.

Villas and townhouses are also popular with foreign tenants. At the same time, 42% choose three-bedroom villas.
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