Dubai real estate market's strong growth in 2024

In the second quarter of 2024, Dubai’s real estate market significantly increased across residential, office, retail, and hospitality sectors. According to the latest market report, for the second quarter of 2024, there were 40,584 real estate transactions worth AED 104 billion. It is a 49% increase compared to the same period last year.

Haider Tuaima, the director and head of Real Estate Research in ValuStrat stated: “The Dubai real estate market has shown impressive growth and resilience in recent months. The ValuStrat Price Index for Residential Capital Values increased by 6.4% quarterly and 28.2% annually, reaching 178.2 points.” The prime properties’ price rises 6.5% quarterly and 29.9% annually, which sets a new record at 184.3 points. The premium apartments’ capital gains increased 4.8% quarterly and 23.1% annually, reaching 156.5 points.

The office unit valuations in Dubai “surged by 31.7% annually and by 9.4% on a quarterly basis, marking the 13th consecutive quarter of growth and the highest quarterlyhincrease in a decade.”

In the retail sector, Emaar Properties reported 98% occupancy in their principal mall assets, whereas their overall mall occupancy was at 96% during 2024 Q1.

In the hospitality sector, the total number of international guests reached 8.12 million as of 2024 May, this is a 9.9% increase compared to 2023 May. The hotel occupancy reached 81%, with a rise of 1.4% year over year.

Dubai Industrial Capital Values reached 136.3 points. The best locations include Al Quoz (with an increase of 30.7% annually), JAFZA South (with an increase of 19.7% annually), and Dubai Investment Park (with an increase of 15.2% annually).

To conclude, Haider Tuaima pointed out that “Dubai's real estate market continues to thrive with strong demand. The upward trend in valuations and rents across various segments shows that the market cycle is in its upswing stage, demonstrating resilience and growth, making Dubai a key player in the global property market. As the market stabilizes and matures, monitoring these trends and adjusting strategies accordingly will be crucial to maximize investment returns. However, the decline in transaction volumes calls for a closer examination of market dynamics as stakeholders navigate this evolving landscape.”

by: Meng Lingyi
Credits to:
valustrat.com (1),
arabianbusiness.com (1), (2)

Date: July 31, 2024