Dubai Real Estate market is experiencing a surge in activity. May 2024 saw the highest number of transactions ever recorded, marking a 44.2% increase year-on-year. This growth trend extends to the year-to-date figures, which show impressive gains compared to both 2023 and 2019.
This surge in transactions is accompanied by rising property values. Average residential prices across Dubai climbed 20.1% year-on-year in May 2024. Both apartments and villas witnessed similar increases, reflecting strong demand across property types.
The rental market is another bright spot. Rents have risen steadily, with a year-on-year increase of 21.1% for the entire residential market. This trend is expected to continue, although at a more moderate pace as affordability becomes a growing concern.
While higher-end properties face limited stock availability, core and affordable segments of the market are experiencing robust growth. Palm Jumeirah remains the leader in terms of sales rates for both apartments and villas, highlighting the enduring appeal of prime locations.
New project launches haven’t significantly impacted prices due to high absorption rates. However, the long-term effects of increased supply on sales prices require close monitoring.
Overall, the Dubai real estate market is demonstrating impressive performance with high demand and rising prices. While affordability concerns and potential price stabilization are emerging, the market outlook remains positive, particularly with increased supply offering some relief to the rental market.
Posted On: 2 Jul 2024
Source: https://www.arabianbusiness.com/industries/real-estate/dubai-real-estate-sector-sees-44-surge-in-transactions-as-property-prices-and-rents-increase-one-area-dominates-both-villa-and-apartment-sales
