Dubai's real estate market has witnessed a surge in demand for two-bedroom apartments among investors and end-users. This change is due to evolving consumer preferences, including a rising interest in property ownership and an influx of families seeking second homes.
Data from Property Finder for March 2023 reveals that 59.7% of prospective property buyers in Dubai prefer apartments, while 40.3% opt for villas or townhouses. The popularity of apartment searches has increased from 57.2% in March 2022 to 59.7% in the most recent month. In contrast, the interest in villas and townhouses has slightly decreased by 2.5%, dropping from 42.8% to 40.3%. Among home seekers, two-bedroom apartments are the most popular size, accounting for 34%, followed by one-bedroom units at 32%.
The pandemic had previously spurred a significant demand for villas and townhouses as residents sought more spacious and independent living arrangements. Now that the pandemic is in the past, the real estate market is experiencing a resurgence in interest in apartments.
The UAE's property sector has seen a notable increase in demand and value during March, reflecting a thriving market. Scott Bond, Country Manager at Property Finder, noted a shift in consumer preferences toward ownership and continued growth in the rental market. The property sector's positive outlook for the upcoming months is closely monitored and addressed by Property Finder.
Samana Developers' CEO, Imran Farooq, acknowledged that apartments remain in demand for various reasons. However, villas appeal to buyers seeking luxury, privacy, and ample space as primary factors.
Rental Segment
In the rental segment, Property Finder's data indicates that 79.8% of tenants search for apartments, while 20.2% look for villas or townhouses. Among those seeking long-term apartment rentals, 63.8% prefer furnished properties, while 34.4% search for unfurnished units.
Conversely, tenants seeking villas or townhouses have different preferences, roughly 52.1% looking for unfurnished units and 46.8% searching for furnished options.
Imran Farooq highlights the hassle-free experience of staying in a furnished apartment as one of its significant advantages. Tenants are not required to handle post-dated checks, Ejari, Dewa, or other housing-related charges. Furnished apartments typically include rent covering utility bills, housekeeping, laundry, and access to amenities such as pools and gyms. This convenience makes them a popular choice for short-term stays in Dubai or for those who prefer to avoid complex documentation and obligations.
As for tenant preferences, Property Finder's March 2023 data shows that 33.3% of tenants searched for one-bedroom units, 30.4% were looking for two-bedroom units, and 29.4% preferred studios. Regarding villas and townhouses, 42% of tenants primarily sought three-bedroom units, while 35.5% searched for options with four or more bedrooms.
