Dubai's real estate market is experiencing a significant increase in investment, which is expected to continue. This surge is predicted to attract more wealthy individuals, leading to substantial growth in the ultra-luxury segment. In the first quarter alone, Dubai's residential property market saw a surge to $110 billion, with a 55% increase in investment. Additionally, 42% of new investors are coming from international markets, according to Springfield Properties' Quarter 1, 2024 Market Insights Report.
“Building upon the record-breaking achievements of 2023, Dubai’s residential market continued its upward trajectory in Q1 2024, with an impressive 37,134 transactions totalling $109.8 billion. The upward trend is expected to escalate following the move to waive the Dh1 million minimum down payment requirement for golden visa eligibility through real estate investment,”
the report said.
“The first quarter of 2024 witnessed a significant milestone in Dubai’s real estate landscape, marked by a notable surge in sales. This surge reflects the robust investor confidence and market liquidity vital for sustaining growth and competitiveness,” said Farooq Syed, CEO of Springfield Properties. “Our report highlights a growing demand for off-plan properties, signalling a strategic shift in investment preferences and highlighting the sector’s potential for capital appreciation and yield generation,”
he added.
“During this quarter, the balance between off-plan and secondary market sales underscores a mature and diverse real estate landscape. This equilibrium reflects investor confidence and market stability, showcasing the resilience of the property sector,”
the report said.
“Dubai’s strategic focus on regulatory frameworks and ongoing infrastructure improvements have substantially bolstered the city’s appeal. When combined with our market insights, these elements reaffirm Dubai’s position as a prime destination for investors in search of enduring value and growth opportunities,”
said Sayed.
According to a recent survey by ValuStrat, there's a notable trend emerging in Dubai's real estate market: the rate of capital growth in apartments is catching up with that of villas. Their report on Dubai residential capital values shows that the ValuStrat Price Index (VPI) reached 167.5 points in March, indicating a 24.7% annual increase and a 2.1% monthly increase. Villas reached 211 points, while apartments stood at 139.2 points, compared to the baseline of 100 points set in January 2021. Apartment prices rose by 1.9% month-on-month, showing a record annual growth of 20.1%. In comparison, villa capital gains were at 2.4% compared to February and 29.6% since the previous year.
Discovery Gardens experienced the highest growth in apartment capital, rising by 32.6% in the past year. This was followed by The Greens (29.8%), Palm Jumeirah (29%), The Views (24.8%), and Town Square (24.5%).
Since January 2021, Palm Jumeirah apartments have shown the highest growth rate, increasing by 83.6%, followed by The Greens (55.2%) and Jumeirah Beach Residence (52%).
Villas in desirable areas like Palm Jumeirah and Jumeirah Islands also demonstrated significant growth, both increasing by 37.7% compared to last year. They were followed by Dubai Hills Estate (34.8%), Mudon (30.2%), and Arabian Ranches (29.2%).
Jumeirah Islands had the highest growth rate in villas since January 2021, soaring by 143.5%, followed by Palm Jumeirah (125.7%).
There were 15 transactions for ready properties priced over Dh30 million. These villas are located in Palm Jumeirah, Dubai Hills Estate, Jumeirah Golf Estates, Emirates Hills, and Jumeirah Bay Island.
Annual off-plan Oqood (contract) registrations increased by 14%, with a monthly growth of 18.2%. Emaar (14.9%) had the highest share of Oqood transactions in March 2024, followed by Damac (10.9%), Azizi (6%), and Sobha (5.6%).
Top off-plan locations transacted included projects in Jumeirah Village Circle (10.9%), Zabeel First (6%), Meydan One (5.7%), and Business Bay (5.6%). Jumeirah Village Circle (9.3%) led in the sales of ready homes, followed by Business Bay (7.4%), Dubai Marina (6%), and Downtown Dubai (5.3%).
News Source: Khaleej Times
