Dubai is witnessing a growing demand for larger homes, driven by an influx of young families relocating to the city and opting for ownership over renting. As the emirate’s population surged by 115,327 this year, reaching 3.77 million, many families are seeking two-bedroom apartments and four-bedroom or larger villas. Data from Property Finder for August shows that 59% of property buyers were interested in apartments, while 41% sought villas and townhouses. Larger units are in higher demand, with 36% of investors looking for two-bedroom apartments and 47% for four-bedroom villas or bigger.
The rise in demand is attributed to residents switching to ownership to avoid rising rents, as well as foreign investors and businessmen relocating with their families. Since January 2021, Dubai’s population has grown by 359,311, and this population boom has fueled the real estate market. Popular areas for apartment ownership include Jumeirah Village Circle (JVC), Dubai Marina, Downtown, and Business Bay, while villas are most desired in Dubai Hills Estate, Palm Jumeirah, and Damac Hills 2.
The surge in population has also boosted demand for rental properties, with 79% of tenants seeking apartments. Furnished rentals are particularly popular, though a majority of villa renters prefer unfurnished options. The most sought-after rental locations are Dubai Marina, Downtown Dubai, and Jumeirah Village Circle. In August, Dubai saw 16,163 property transactions, a 37% year-on-year increase, with transaction values rising by 38% to Dh47.2 billion.
