Over the past month, the number of registered tenants for rental properties in Dubai surged by 110% year-on-year, and correspondingly, the number of properties offered by landlords increased by 91%. This data indicates that Dubai's real estate sector is gradually shifting towards a market more favorable to landlords.
The report from Allsopp & Allsopp also points out a substantial increase of 99% in property viewings for rentals. The overall growth in rental transaction volume is primarily attributed to tenants opting for flexible payments using four or more checks, resulting in a 94% increase in rental transactions in November. Among these, tenants choosing 4+ checks increased by 21.4%, accounting for 31% of the total rental transactions.
The villa rental market in Dubai achieved an astonishing annual growth rate of 58%, surpassing the overall market average. This is mainly driven by increasing demand for villas from existing and new community families. Through flexible payment plans, both tenants and landlords are finding suitable opportunities.
In terms of sales, the real estate transaction volume handled by Allsopp & Allsopp increased by 4% compared to November 2021. Sellers maximized market supply by introducing 21% of properties to the market.
Additionally, there was a 53% increase in the registration of new buyers and investors, indicating strong interest in reasonably priced ready and off-plan properties. Apartments priced below 2 million dirhams continue to be popular among first-time buyers.
In 2023, Dubai's real estate market created several records. The average selling price per square foot increased by 14% from the market peak in 2014, reaching 1,257 dirhams per square foot. Compared to London, Paris, and New York, Dubai remains one of the most affordable choices.
The report from Allsopp & Allsopp suggests that Dubai's real estate market is poised for further growth, but current market indicators indicate a shortage of supply. The company's CEO, Lewis Allsopp, stated that unless there are natural disasters or other major events in 2024, the Dubai real estate market will continue to thrive and may set new records.
The report also predicts that by 2024, Dubai's real estate market will deliver 50,000 to 70,000 units, with strong demand for high-end residential communities, and sellers and landlords will continue to gain significant returns.