Dubai’s property market is expected to achieve a 7% growth
Dubai’s property market is set to experience a growth spurt, with anticipated price increases of 5% to 7% this year, building on the back of a record $117 billion in real estate transactions in 2023.
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Experts at D&B Properties predict a continuation of this upward trend, driven by strong buyer demand. The sector’s growth is underpinned by a combination of government initiatives, economic resilience, and significant investor interest, which are all expected to contribute to further market expansion.
Cautious Optimism for the Future
Despite the positive outlook, there’s a note of caution regarding potential shifts in the latter part of 2024, especially within the luxury real estate segment. Soliman Hossameldin, the Director of Digital Marketing at D&B Properties, emphasizes Dubai’s attractive qualities for investors, including its strategic location, world-class infrastructure, and dynamic business environment. These factors, combined with the city’s status as a global hub, ensure a continuous demand for real estate investments, offering lucrative opportunities for capital appreciation and rental yields.
Resilience and Surge in Transactions
The resilience of the UAE’s property market is notably demonstrated by its performance, especially in Dubai and Abu Dhabi. Enhanced by governmental policies and sustained economic growth, the market has seen a surge in transactions, particularly in Dubai, which recorded a significant increase in new property deals. Forecasts predict a price rise of 5% to 7% in Dubai and 3% to 9% in Abu Dhabi.
Record-Breaking Year for Dubai Real Estate
The previous year marked a milestone for Dubai’s real estate sector, with 116,116 transactions totaling AED429.6 billion ($117 billion). This represented a remarkable year-over-year increase in both the number of transactions and their value, underscoring the market’s attractiveness and resilience to global investors. With investors hailing from diverse regions including India, China, the UK, Europe, CIS countries, Latin America, Mexico, and Canada, the market’s global appeal is evident. The anticipated post-pandemic recovery in China is expected to further enhance demand and investor confidence.
The Evolving UAE Property Market
As the property market in the UAE continues to evolve, stakeholders are advised to remain cautious and adaptable to changing market dynamics. Collaboration among developers, investors, and policymakers is essential to fostering sustainable growth and ensuring long-term market stability.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
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Villa prices saw particularly strong growth, with capital values increasing by 33.4 percent year-on-year
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Dubai’s real estate market showed strong performance in the second quarter of 2024, with notable increases across the residential, office, and retail sectors, according to a new ValuStrat real estate report for Q2 2024.
Villa prices experienced particularly strong growth, with capital values rising by 33.4 percent year-on-year.
Haider Tuaima, Director and Head of Real Estate Research at ValuStrat said: “The Dubai real estate market has shown impressive growth and resilience in recent months. The ValuStrat Price Index for Residential Capital Values increased by 6.4 percent quarterly and 28.2 percent annually, reaching 178.2 points.
“Despite severe flooding caused by record rainfalls in April, the quick and effective response from developers and authorities helped to control the damage, ensuring that market activity and property valuations remained robust in the subsequent months.”
The office sector also performed well, with the VPI for office capital values surging by 31.7 percent annually and 9.4 percent quarterly, reaching 212.5 points—the highest quarterly increase in a decade.
In the retail sector, Emaar Properties reported 98 percent occupancy in their prime mall assets, while overall mall occupancy stood at 96 percent during the first quarter of 2024. The hospitality sector also saw growth, with total international guests reaching 8.12 million as of May 2024, a 9.9 percent increase compared to the same period last year. Hotel occupancy reached 81 percent, rising by 1.4 percent year-on-year.
Despite these positive indicators, Tuaima added, “The decline in transaction volumes calls for a closer examination of market dynamics as stakeholders navigate this evolving landscape.”
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
