Dubai Real Estate market continued its impressive growth trajectory in the second quarter of 2024, shattering transaction volume records and experiencing price increases across both sales and rental sectors.
Dubai Real Estate Surge in Transactions and Rising Prices:
Market reports indicate a staggering 49% increase in property transactions compared to the same period last year, with over 40,000 deals recorded. This robust performance signifies a period of “unprecedented growth and transformation” for the Dubai real estate landscape.
The secondary market, encompassing existing properties, witnessed a significant rise in villa transactions. Year-on-year growth reached 36%, with a further 23% jump compared to the previous quarter. This trend is attributed to a shift in preference by tenants towards homeownership, likely driven by rising rental costs.
Off-Plan Boom and Developer Confidence:
Dubai off-plan market, focused on pre-construction properties, also displayed substantial growth. Over 200 new residential projects were launched so far in 2024, adding nearly 50,000 units to the market. This surge reflects strong developer confidence and sustained investor and buyer demand.
The average price per square foot reached AED 1,380 in Q2, representing an 18% increase year-on-year and a 4% rise compared to the previous quarter. This trend suggests a “stabilizing trend” for property prices in the city.
Specific areas witnessed exceptional growth, with Palm Jumeirah Fronds experiencing a remarkable 75% year-on-year increase for villas. Jumeirah Park and Arabian Ranches also performed exceptionally well, with price increases of 45% and 22% respectively, compared to the same period last year.
Dubai Rental Market Dynamics:
While the rental market saw a 21% decrease in transactions compared to the previous quarter, the overall activity remained healthy with over 106,000 transactions recorded. This decline can be attributed to factors such as renters transitioning to homeownership, high occupancy rates limiting vacancies, and a shortage of new rental properties entering the market.
Rental yields in Dubai continue to outperform global averages, with gross yields reaching 7.64% for apartments and 5.23% for villas and townhouses for rent. Certain areas, like Dubai Investments Park and International City, offered even higher yields exceeding 9%.
Dubai Real Estate Luxury Market Activity:
Dubai luxury property segment also displayed significant activity in Q2 2024. There were 664 sales transactions for properties valued at AED 15 million or higher, concentrated in prestigious locations like The Oasis by Emaar, Palm Jumeirah, and Mohammed Bin Rashid Al Maktoum City.
