Dubai is on track to achieve a historic milestone in its real estate sector this year, with a record 38,174 new homes set for handover. This impressive figure marks a significant expansion in the Dubai property market 2024, reflecting continued growth and a robust recovery in the Dubai real estate sector.
According to a recent report by consultancy ValuStrat, the first half of 2024 saw the completion of 6,939 apartments and 2,145 villas, representing approximately 20% of the annual forecast. Noteworthy completions include the Creek Views 1 and 2, which added a total of 1,221 new apartments, and Murroj Al Furjan West and Silver Springs 3 in Damac Hills, contributing 419 new villas.
With 91,718 apartments and 28,385 villas currently under construction, the Dubai real estate market is poised for sustained growth. These developments are projected for handover by 2028, with key concentrations in Jumeirah Village Circle and Business Bay.
Haider Tuaima, Director and Head of Real Estate Research at ValuStrat, emphasized the thriving nature of Dubai's property market. “The upward trend in valuations and rents across various segments indicates that the market cycle is firmly in its upswing stage. As the market stabilizes and matures, ongoing monitoring and strategic adjustments will be crucial for optimizing investment returns,” Tuaima noted.
The dynamic performance of Dubai's real estate sector is underpinned by a series of government initiatives, including expanded residency permits and a growing golden visa program. These measures, coupled with the UAE's broader economic diversification efforts, have bolstered investor confidence and market vitality.
In the luxury segment, Dubai has surpassed its previous highs, with the prime market achieving record sales of homes priced over $10 million, reaching $7.6 billion. The city has outperformed other major global markets such as London and New York in this category. The influx of global wealth and a favorable investment climate have further cemented Dubai's status as a leading real estate hub.
The ValuStrat report also highlights a notable increase in residential property values and rents. Palm Jumeirah, in particular, has surpassed its 2014 price peak for apartments, setting a new benchmark in Dubai's property market. Overall, apartment values have risen by 5.4% quarterly and 23.4% annually, while villa values have surged by 33.4% year-over-year.
Despite recent challenges, such as severe flooding in April, the real estate sector has demonstrated resilience. Prompt actions by developers and authorities have effectively mitigated the impact, ensuring minimal disruption to the market's upward trajectory.
The second quarter of 2024 saw a total of 7,921 mortgage transactions and 13,834 cash transactions of ready properties, with substantial investments in off-plan projects. Notably, the off-plan market has experienced significant growth, with a 61.4% annual increase in transactions.
Dubai's rental market has also seen upward momentum, with residential rents increasing by 2.7% quarterly and 10.8% annually. The average annual rent for apartments has reached Dh89,100, while villa rents have risen to Dh408,200.
As Dubai prepares to hand over a record number of homes this year, the city remains a focal point for real estate investment, driven by its strong economic fundamentals and vibrant property market.
