JobXDubai

Dubai’s real estate market is undergoing a significant shift, with apartments now in higher demand than villas. This trend reversal is driven by an influx of professionals moving to the emirate, seeking apartments as their preferred choice of accommodation.

In April, a staggering 58% of property buyers were looking for apartments, while 42% sought villas or townhouses. Similarly, 79% of tenants preferred apartments, with only 21% opting for villas or townhouses.

Industry experts attribute this shift to the growing population and changing consumer preferences. With Dubai’s population increasing by nearly 100,000 in 2023, the demand for apartments has been outpacing supply. In the first quarter of 2024, the emirate welcomed 25,700 new residents, further fueling the demand for apartments.

Cherif Sleiman, Chief Revenue Officer at Property Finder, notes, “The strength of the real estate market is evident, despite ongoing changes in demand. There is an interesting shift in consumer preferences, towards an increased appetite for apartments.”

John Lyons, Managing Director of Espace Real Estate, adds, “With the population continuing to grow, we have seen a significant increase in mortgage leads and buyer registrations over the last quarter.”

A recent study by Property Founder revealed that 64% of tenants prefer furnished apartments, while 33% opt for unfurnished options. In contrast, those seeking villa rentals have different preferences, with 55% looking for unfurnished units and 44% for furnished options.

Looking ahead, industry executives predict higher demand for apartments and villas in areas such as Dubai South, thanks to the Dubai Metro’s Blue Line and the shift of operations from Dubai International Airport to Al Maktoum International Airport.

Off-plan units in these new areas are expected to be in high demand, offering higher returns for investors as the population grows in these areas due to airport development, new residential, and hospitality projects.

With the continued growth of Dubai’s population and market supply, this trend is expected to continue, pushing demand, rentals, and prices for apartments upward.