The demand for larger apartments and villas/townhouses is on the rise as an increasing number of young families opt for ownership and relocate to Dubai, according to recent data. In August, the majority of buyers were interested in two-bedroom apartments and four-bedroom or larger villas, as per the latest figures from Property Finder. This surge in demand is primarily fueled by residents choosing to buy to escape escalating rents, along with foreign investors and businessmen moving to Dubai with their families. Last month, 59% of property buyers in Dubai were looking for apartments, while 41% were interested in villas/townhouses. Among apartment seekers, 36% wanted two-bedroom units, 32% sought one-bedroom, and 14% were looking for studios. For villas/townhouses, 39% were interested in three-bedroom units, and 47% in four-bedroom or larger options. This indicates a growing preference for larger living spaces as more families either move or plan to move to Dubai for long-term residency.
“August was a particularly vibrant month, with numerous project developments contributing to the ongoing growth of Dubai’s dynamic real estate market. The sector is witnessing a diverse range of demands, with younger families seeking community-oriented living spaces, which has spurred interest in affordable housing; meanwhile, luxury housing demand is also increasing, driven by the anticipated arrival of ultra-high-net-worth individuals in the coming years,” explained Cherif Sleiman, Chief Revenue Officer at Property Finder.
The demand for property ownership, particularly in the off-plan market, has been soaring over the past three and a half years, largely due to the influx of businessmen and high-net-worth individuals into Dubai. The city’s population has increased by 115,327 this year, reaching 3.77 million. Since January 2021, the population has surged by 359,311. Most property buyers in Dubai were keen on owning apartments in popular areas like Jumeirah Village Circle (JVC), Dubai Marina, Downtown, Business Bay, and Palm Jumeirah. For villas and townhouses, the most sought-after locations were Dubai Hills Estate, Al Furjan, Palm Jumeirah, Damac Hills 2, and Dubai South.
The growing population is also driving up demand for rental properties across Dubai. About 79% of tenants were looking for apartments, with the remaining 21% interested in villas and townhouses. The majority, 63%, preferred furnished properties, while 36% looked for unfurnished options. In the villa and townhouse category, 57% sought unfurnished properties. For rentals, there was higher demand for one-bedroom units, followed by two-bedroom apartments and studios. Popular areas for renting apartments included Dubai Marina, Jumeirah Village Circle, Downtown Dubai, Business Bay, and Jumeirah Lakes Tower. Dubai Hills Estate, Jumeirah, Damac Hills 2, Al Barsha, and Umm Suqeim were favored by those looking to rent villas/townhouses. In August, the transaction volume reached 16,163, marking a 37% increase from the same month last year, with the total value of these transactions rising by 38% to Dh47.2 billion.
