Dubai’s Q1 2024 Flourishes with Significant Growth in Transactions and Sales Values
The commercial property market in Dubai saw growth, during the first quarter of 2024, as reported by CRC (Commercial Real Estate), part of the Betterhomes group.
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The report highlighted that the total commercial transactions in Dubai increased by 3% compared to the first quarter of the previous year, with a significant 16% rise in the total value of these sales.
Behnam Bargh, Managing Director of CRC, remarked, “We have experienced a notable surge in transactions, registering a remarkable 27% increase compared to the same period last year. However, amidst these positive developments, it’s crucial to acknowledge the shifting dynamics within the leasing segment.”
Top Leasing Communities Offices
1st – Jumeirah Lake Towers (JLT)
2nd – Business Bay
3rd – DIFC
4th – Dubai Media City
5th – Barsha Heights (Tecom)
The office and retail areas were primary contributors to this growth, with office transactions up by 8% and retail deals by 23% year-over-year. Specifically, the value of office sales rose by 28%, while retail sales values saw a 2% increase. Business Bay was the premier location for office transactions in Q1 2024, recording 307 deals, followed by Jumeirah Lake Towers with 220 transactions. The leasing market, however, showed varied results.
Bargh noted, that while there’s been a spike in overall tenant leads, leasing transactions have declined across all segments. This shift is largely due to clients preferring to buy rather than lease properties, influenced by rising rental prices in all areas of Dubai.
Interest in buying has grown substantially, with CRC reporting a 21% increase in buyer leads over the previous year and a 27% rise in overall transactions.
Sales Trends in Key Areas
Business Bay: The office and retail segments drove significant expansion, with office transactions surging by 8% compared to Q1 2023 and retail transactions experiencing a substantial growth of 23%.
Jumeirah Lake Towers (JLT): Renowned for its picturesque lakeside setting and diverse office spaces, JLT remains a favoured destination for office investors and end-users.
Jumeirah Village Circle (JVC) and Silicon Oasis: Both locations hold appeal for office investors and end-users. JVC’s tranquil environment and Silicon Oasis’s tech-focused infrastructure contribute to their attractiveness.
Additionally, there has been a notable change in payment methods, with 42% of clients now choosing two-cheque payments and 29% opting for four-cheque payments, moving away from the traditionally dominant single-cheque payment method.
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
