The Dubai property market continues to attract a diverse range of international buyers.
As the first half of 2024 concludes, Dubai’s real estate sector is exhibiting robust growth. We have seen an influx of foreign buyers. There is an absorption of existing inventory and a noticeable movement in the suburbs. Property prices in the most sought-after areas have risen once again. This counters any speculation of a slowdown and reaffirms Dubai’s position as a global investment hub.
Despite the ongoing increase in property prices, Dubai remains highly affordable as compared to other luxury real estate destinations worldwide.
Dubai’s Real Estate Market: Emerging Trends
The latest trends show heightened interest in affordable properties in areas like Dubai South, DAMAC Hills 2, and The Valley by Emaar. Eva Bogotlieva, Managing Partner, Savoir Prive Properties, Â says that affordable properties provide a promising return on investment while catering to a broader audience, thereby driving increased demand. Kiran Khawaja, CEO, Fajar Realty, also agrees when she says the latest trends indicate a growing interest in affordable properties among investors. This is driven by a demand for value-based investments, especially as Dubai continues to evolve as a prime real estate market, making affordability a key factor for both local and international buyers.
Mid-range properties like Jumeirah Village Circle, Jumeirah Lakes Towers, Al Furjan, and The Springs have also seen increased demand.
The luxury properties in areas like Dubai Marina, Business Bay, Arabian Ranches, and Dubai Hills Estate have captured the attention of the investors.
Dubai Real Estate Market: Performance So Far
As per the data shared by Property Monitor, which is the UAE’s leading real estate technology and market intelligence provider, in the first half of 2024, the Dubai real estate sector saw a year-on-year volume growth of over 30 percent. May 2024 proved to be a record-breaking month with a 47.7 percent month-on-month increase and a 45.9 percent year-on-year rise in sales transaction volumes.
Property Monitor figures from the first half of the year indicate significant volume growth in the villas, which is driven by residents seeking family-friendly long-term living options. Developers have responded by launching 3,323 villas in the first half of 2024, with many expected to be completed by 2028. Kiran Khawaja agrees with these figures. “Usually families are increasingly opting for spacious villas as they offer long-term living solutions in family-friendly neighborhoods, which cater to their needs for privacy, space, and community amenities.”
Projects by Emaar like The Oasis, The Heights Country Club and Wellness, and Grand Polo Club and Resort have managed to attract investors.
More than 80 percent of the new property units launched in Dubai since 2022 have been sold out, reflecting the consistently high demand for off-plan projects.
According to Dubai Land Department data, nearly 214 projects have been launched, 148 of which are active.
Areas with the highest ROI
Bayut’s data shows that sales prices for the apartments and villas in the prominent Dubai neighborhood have recorded significant increases. The highest increase, reaching up to 17 percent, was observed for villas in The Valley by Emaar.
The first half of 2024 saw a total of 43,075 property sales transactions amounting to a combined value of AED 122.9 billion.
There has been a shift in transaction price brackets in the AED 1000-2000 per square foot range and the AED 2000-3000 per square foot bracket.
In terms of ROI based on projected rental yields, areas like Dubai Investments Park, Discovery Gardens, and Dubai Sports City have emerged as top choices for potential investors.
The luxury segment has also shown impressive returns, with Green Community, Al Sufouh, and DAMAC Hills leading the way.
Rental prices in the affordable neighborhoods have surged, with increases ranging from 4 to 31 percent. Mid-tier and luxury segments have also seen notable price hikes, reflecting a strong demand for the rental properties across Dubai. Eva Bogotlieva says there is a strong demand for rental properties across Dubai. “The city’s vibrant economy, diverse expatriate population, and continuous influx of tourists contribute to high rental demand. This trend reflects the dynamic and growing nature of Dubai’s real estate market.”
The Dubai sales report for the first half of 2024 reveals that British investors were the top buyers in Dubai’s real estate market during the period.
