As Dubai’s population continues to grow, it seems that the city is no longer a single person’s playground. Dubai families are becoming a major driver in the property market.
In August, most buyers were looking for two-bedroom and four-bedroom apartments or larger villas, according to the latest data released by Property Finder.
Around 59% of property buyers in Dubai were looking for an apartment last month, while 41% were hunting for villas and townhouses.
Demand for larger homes is being pushed by residents switching to ownership to beat rising rents and foreign investors and businessmen relocating with their families.
“August was a particularly exciting month, with several project developments feeding into sustained growth in Dubai’s thriving real estate sector. The industry continues to see a breadth of demand – with younger families looking for community-centric living options, driving affordable housing interest; while luxury demand is also on the rise, with the influx of ultra-high-net-worth individuals expected in the coming years.”
Cherif Sleiman, Chief Revenue Officer, Property Finder
The emirate’s population has grown by 115,327 this year to 3.77 million so far. Since January 2021, the population has grown by 359,311.
Most of the property buyers in Dubai wanted to own an apartment in Jumeirah Village Circle (JVC), Dubai Marina, Downtown, Business Bay and Palm Jumeirah. Dubai Hills Estate, Al Furjan, Palm Jumeirah, Damac Hills 2, and Dubai South were the most desired areas to own villas and townhouses.
It comes as the Dubai real estate sector landed AED 47.3bn of deals last month. The most expensive Dubai real estate property sold was an apartment at the Dorchester Collection in Business Bay, which fetched AED 139m.
A market update issued by fäm Properties revealed that last month’s total of 16,159 transactions represented a 36.9% increase in volume over August 2023. The average price per sq ft also rose 6.1% to AED 1,493.
This market update follows the recent news that 25,000 new Dubai homes are expected by the end of 2024. These new homes coming on-line are driven by continued economic growth, infrastructure development, and an expanding population.
