Stijgende huren in de VAE: Vraag naar direct beschikbare woningen stijgt doordat steeds meer huurders eigenaar worden!

Source: Khaleej Times

In the first quarter of 2024, demand for ready-to-move-in homes in the UAE surged as more tenants opted to become homeowners to avoid rising rental costs.

According to data released by Property Finder, there was strong demand for ready properties in both Dubai and Abu Dhabi during Q1 2024. This contrasts with Q1 2023, which saw higher volumes of off-plan transactions.

Approximately 16,600 off-plan sales transactions were recorded in Q1 2024, compared to 16,000 in Q1 2023, representing 46% of total transaction volumes this year, down from 52% in Q1 2023.

Rising Rental Prices Fuel Ownership Demand

Rental prices have consistently increased over the past three years following the pandemic, and this upward trend is expected to continue in 2024 due to unprecedented demand driven by population growth. In response to escalating rents, UAE residents are turning to property ownership in Dubai and Abu Dhabi as a means to save on housing costs while benefiting from property value appreciation.

"2024 is shaping up to be an interesting and promising growth phase. We are witnessing a more diversified demand, and we are optimistic about its impact in the coming months," said Cherif Sleiman, Chief Revenue Officer of Property Finder.

Ready Property Market Performance

In Dubai, the ready property market registered nearly 19,600 transactions in Q1 2024, increasing its market share to 54% of total transactions, up from 48% with approximately 15,000 transactions in Q1 2023. This represents a remarkable 30% volume growth compared to the same period last year.

Transaction values also saw substantial growth. Ready property transactions accounted for 68% of total transaction value, with AED 78.2 billion in Q1 2024, compared to 60% and AED 53.6 billion in Q1 2023. This marked a 46% increase in transaction value year-on-year.

Overall Market Growth

Data from the Dubai Land Department (DLD) highlighted a significant rise in total sales transactions in Q1 2024. Over 36,000 transactions were recorded, marking the second-highest transaction volume ever for the first quarter. This was a 17% increase compared to 31,000 transactions in Q1 2023.

Despite the strong performance of the ready property market, off-plan sales remained robust, with 16,600 transactions in Q1 2024, slightly up from 16,000 in Q1 2023. However, their share of total transactions dropped to 46%, compared to 52% in Q1 2023.

These figures underscore a notable shift in buyer preference toward ready-to-move-in homes, reflecting changing market dynamics in the UAE's evolving real estate landscape.

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