What is it that draws investors from all over the world to Dubai’s real estate market? Do they want the luxurious properties or the business-friendly areas or the growth-promoting regulations of the government?
As of the 3rd quarter 2024, Dubai’s real-estate scene has demonstrated once more the reasons why it is a magnet for investors around the world. With the help of real estate developers in Dubai you can make a wise decision.
The growth of the market, its potential to earn a profit, and the capacity to bounce back appear unstoppable. A good policy, foreign cash and the government’s efforts to make Dubai a hub for the latest ideas and luxury have helped the market smash records. This report focuses on Dubai’s stunning property payoff for the quarter ending March 2024. It’s a city that is constantly growing as well as its skyline as well as its accomplishments.
Key Highlights
- AED 138.8 Million in Sales Total: total real estate sales in Q3 2024 totaled AED 138.8 billion, with residential sales in addition to commercial transactions within the emirate.
- The Residential Sales recorded an increase of 40.8 percent year-on year in the amount of AED 115.6 billion. Off-plan transactions were the most prominent with over 65% of all transactions.
- Commercial Growth: Revenues in the commercial market were AED 23.2 billion. This is a boost of 28% from the Q3 of 2023. This was boosted by the strong demand for retail and office space.
Economic Fundamentals and Investment Attractiveness
Dubai is one of the top destinations that investors from around the world prefer to visit.
The UAE’s predicted economic growth of 3.9 percent in 2024 and a projected increase to 6.2 per cent in 2025 increase investor confidence.
Alongside the UAE the economy of Dubai is growing, and they pay low taxes and have amazing infrastructure. They are predicted to maintain their growth in the economy which will boost investors even more.
The Dubai Real Estate Market is booming and attractive to a lot of people. The high demand for properties of the highest quality and the plans of the government for expansion show the market is advancing.”
Residential Market Performance
The Dubai residential market saw an improvement in the volume of transactions which amounted to AED 115.6 billion for the third quarter of 2024. A majority of the transactions were off-plan which accounted for 65 percent of the market. More than 30,000 units were sold, which is a rise of 62.5 percent from one year earlier. The average cost per square foot for residential properties in Dubai is increasing gradually, and will reach AED 1,448 by the end of the end of Q3 2024. This was up from AED 807 in Q2 of 2020, which has seen a steady improve in price increases and increasing demand particularly in prime areas such as Palm Jumeirah, Dubai Hills Estate as well as Emirates Living, meaning that buyers are looking for properties with a premium price and driving prices to record highs. Sales managers included Jumeirah Village Circle , Dubai Hills Estate, and Business Bay , among others. Recently launched projects like Dubai Creek Harbour and Sobha Hartland 2 attracted a huge amount of interest. Interest in ready-to-buy homes was also increasing and indicated a steady rate of interest. To buy property in Dubai you can contact Real Estate Developers in Dubai.
The apartment’s sales volume is on the rise. Each quarter, secondary and off-plan sales have accelerated. In Q3 2024, off plan sales had reached 25,000 units. Off-plan properties continue to fetch a higher price for apartments, with an average of Q3 2024, AED 1,943 per square foot, as opposed to AED 1,384 in secondary-market transactions. On average, off-plan prices are 34% more expensive over secondary deals, suggesting an increased demand from investors for brand new, custom-designed units in specific regions. The off-plan growth in sales shows that investors are more confident in the new developments. The most prominent areas are Jumeirah Village Circle, Business Bay as well Dubai Marina .
Luxury Market Performance
In the quarter ended March 2024 Dubai witnessed a huge rise in the luxury real estate market. There were 635 transactions that were up 9 percent from last year’s figures, totalling AED 17.17 billion.
This boost has changed the market for real estate considerably, with a greater number of homeowners buying homes they already own as opposed to new ones.
The majority of these sales (63%) (404 sales) included homes valued at more than AED 20 million.
This demonstrates Dubai’s high demand for homes that are luxurious. In the quarter ended March 3 the homes sold were 363 in the very first instance and 272 homes were sold again. Apartments accounted for 17% of the sales in Q3, while townhouses and villas were responsible for 83%.
Commercial Real Estate
A 28 percent improvement over last year’s figures has witnessed significant gains in the commercial industry which saw sales of the sum of AED 23.2 billion.
Although the number of transactions was lower however, the value of transactions increased due to higher rates for the most expensive properties.
Office sales grew by 12.6 percent, and retail sales increased by 16.8 percent, which indicates the massive demand for prime commercial spaces.
Business Bay and JLT are extremely popular with businesses. The leasing market has been extremely active in the past, with retail and office space rents increasing by 4 percent and warehouse space rents rising 19 percent.
Buyer Preferences and Search Trends
The top areas to search for apartments in the third quarter of 2024 are Dubai Marina at 9.7% and Jumeirah Village Circle (JVC) with 9.5 percent, followed by Downtown Dubai at 8.4%.
If you’re looking for townhouses or villas there’s Dubai Hills Estate at 6.3 percent and which is followed by Al Furjan at 5.5% and Palm Jumeirah with 5.5%. This shows the growing desire for prime locations as well as luxury living.
Top Buyer Nationality
The top buyers from all nationalities show the international diversity of fascination with Dubai real estate
- India is the most popular and is closely followed by UK and Pakistani buyers.
- China has moved up to the sixth spot along with Lebanon and Russia being included in the top ten. This indicates a greater interest in these markets.
This diverse buyer base consolidates Dubai’s standing as a world-class investment destination attracting high-net-worth investors from all over the world.
Takeaways
Both commercial and residential areas have increased substantially in Q3 2024 because overall real estate transactions have surpassed AED 138.8 billion.
- Off-Strategy Remains King. The need for new construction projects remains huge and accounts for about 65% of all the work in this industry.
- Ultra-luxury Market Resilience. Even though this segment has seen a rise in sales, Dubai remains very attractive for buyers with high net worth.
- Economic Gains for the commercial industry has continued to grow its value particularly in Business Bay and JLT.
- Future Supply Dubai’s real estate market is on track to keep up with the growing demand with a massive improvement in supply, based on the Dubai 2040 urban Master approach .
The ongoing investment in Dubai’s continuous infrastructure, along with favorable policies of the government and a strong economic outlook has ensured that the real-estate market will remain active and resilient throughout the world.
Be it an investor, first-time buyer or just looking for market trends, the third quarter of 2024 will be another record-breaking period for Dubai’s loud and boisterous real estate industry. Real Estate Developers in Dubai can help you in investing.
