Dubai’s Real Estate Sees Dynamic Growth in Early 2024
The Dubai real estate market started 2024 with robust momentum, which signals an optimistic outset for Dubai’s lively property market.
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Industry exports revealed that the Real Estate sector had a 17% year-on-year growth in sales transactions, jumping to over 11,000 from 8,712 in January of the preceding year. In addition, the transaction values witnessed a substantial 27% growth, to nearly AED 35 billion from the year-ago period.
The market analysis also shows that the transactions for existing properties recorded an 8% year-on-year increase in volume, surpassing 5,000 transactions, and their value surged by 31% to AED 21 billion.
Off-plan properties also showed significant interest, with a 25% increase in transaction volume and a 21% rise in value, showcasing growing enthusiasm for new developments.
The split in the buyer interest was clear, as 58% leaned towards apartments and 42% towards villas and townhouses. On the rental front, a significant majority, 80%, opt for apartments, with the remaining 20% choosing villas or townhouses.
Location preferences for apartment purchases highlighted locations like Dubai Marina, Downtown Dubai, and Jumeirah Village Circle as top choices, whereas Dubai Hills Estate and Arabian Ranches are sought after for villas and townhouses. For rental hotspots, Dubai Marina and Dubai Hills Estate are leading for apartments and villas/townhouses, respectively.
When it comes to size, demand trends lean towards one-bedroom with 36% and two-bedroom apartments with 31%, as for studios the numbers reached 22%. Three-bedroom villas and townhouses are most popular at 43%, followed by properties with four bedrooms or more at 34%, reflecting similar buyer preferences.
In terms of furnishing, 62.2% of tenants prefer furnished apartments, whereas 36.1% are seeking unfurnished ones. For villa and townhouse rentals, a preference for unfurnished properties is evident at 57%, while furnished ones attract 42%
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
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
