As Dubai real estate market revives, demand for larger properties spike

By Rahul Vaimal, Associate Editor
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According to listings portal Property Finder, the Dubai property market has seen an increase in user demand for units in the suburbs this year as tenants sought more spacious homes in the midst of the COVID-19 pandemic.

According to a report by the property portal, communities such as Tilal Al Ghaf, Al Muhaisnah, Wasl Gate, Town Square, Mira, Rukan and Dubai Harbour saw a surge in popularity this year.

“The Dubai real estate market saw an increased appetite for upgraded housing solutions – be it to a larger, more spacious home situated on the outskirts of the city, or even if a move to a smaller space, but in a more prime location, people are looking to set themselves differently,” the report said.

More affordable

Prime and central locations such as The Springs, Dubai Marina, Jumeirah Lakes Towers and Arabian Ranches are also seeing a rise in demand as they are now made affordable for individuals who were previously priced out of these neighborhoods.

Dubai’s real estate market slowed after a drop in oil prices that began in 2014, in tandem with an oversupply in the market as projects are completed. A recent UAE Real Estate Market report said about 26,000 new homes were scheduled for completion in the final quarter of this year.

However, with 3,928 property transactions, Property Finder said November marked the highest number of overall transactions in Dubai in nine months.

Spike in demand

According to Data Finder, the data platform within the Property Finder group, secondary property sales recorded in November were the highest in the past six years and seven months. While September to November witnessed the highest ready villa and townhouse sales historically, the month also marked the highest ready apartment sales in 16 months, reveals Data Finder.

Since the beginning of the year, the number of villa and townhouse searches has risen by 400 percent, while apartment searches have dropped, according to Data Finder.

The most popular apartment communities in Dubai based on user searches include Dubai Marina, Downtown Dubai, Palm Jumeirah, Jumeirah Village Circle, Business Bay, JLT and Jumeirah Beach Residence. Meanwhile, Dubai Hills Estate, Arabian Ranches, Palm Jumeirah, Damac Hills (including Akoya by Damac) topped searches for villa/townhouse communities.

The highest number of apartments are currently available in Al Jaddaf, Jumeirah Heights, Al Barari and Al Kifaf, while the most villas and townhouses can be found in Nad Al Sheba, Meydan and Mudon. This is based on the number of property listings on the portal.

Three-bedroom properties are most in demand for people looking to move into a villa or townhouse, while one-bedroom apartments continue to be the most popular, Property Finder said.

Between January and November this year, there was a drop in demand for smaller units, but demand increased for three, four and four-plus bedroom units. Searches for studio and one-bedroom apartments dropped by 4.6 percent and 4.7 percent, respectively, the report added.