Dubai Real Estate Sales Hit $52.5bn In H1 As Apartment, Villa And Rent Prices All Increase

Interested in the performance of the Dubai property market? The first half of this year saw a record for real estate in Dubai worth AED 191 billion ($52.5 billion) in residential property sales, representing a significant 38% increase in valuation compared to the same period last year.  This article provides you with all the essential information and insights driving this growth.

Dubai Real Estate Sales Hit $52.5bn In H1 As Apartment, Villa And Rent Prices All Increase

The Dubai real estate market is showing strong growth. In the first half of 2024, residential property sales reached AED191 billion. This represents a 38% increase from last year. The growth is driven by strong demand and limited supply. This trend highlights the market’s robustness and the high demand for properties in Dubai. Property prices and sales volume in Dubai have increased, reflecting strong market demand. 

However, transaction volumes have decreased in most tracked communities, suggesting that limited supply is affecting sales numbers. Off-plan property sales transactions rose by 56%, while the secondary market showed a steadier growth with a 13% increase in volume. 

Sales volume decreased in 23 out of 30 tracked communities compared to last year, but Town Square, Meadows, Springs, Arabian Ranches, Jumeirah Village Circle (JVC), Jumeirah Lake Towers (JLT), and Jumeirah Beach Residence (JBR) saw increases. The villa and townhouse market experienced significant price increases. 

Nearly all communities saw an average price increase of 28%. Lakes saw a 59% increase, Jumeirah Park 50%, Jumeirah Islands 43%, Damac Hills 43%, Arabian Ranches 2 and Al Furjan both 29%. Jumeirah Golf Estates was the only community where prices did not rise. Price increases, with an average rise of 17% across tracked communities. JVC, JLT, JBR, and Downtown Dubai led the way with 30%, 28%, 24%, and 22% increases, respectively. Palm Jumeirah Apartments and Emaar Beachfront saw more modest increases of 5% and 7%.

The high-end segment, with transactions above AED10 million ($2.7 million), saw fewer deals compared to the second half of 2023 but significantly more than in the first half of 2023. This indicates sustained interest in luxury properties despite market fluctuations.

Also Read: All About Leasehold Property Ownership In Dubai

Rental Market Trends

Dubai’s rental market continues to experience rising prices due to high demand and limited supply. Average rents increased across almost all tracked communities. The average rental price increase for villas/townhouses was 23%, and for apartments, it was 22%. Palm Jumeirah, Jumeirah Islands, and Dubai Hills saw the highest rent increases for villas at 93%, 47%, and 32%, respectively. Bluewaters Island, JBR, and Palm Jumeirah led apartment rent increases at 79%, 19%, and 24%.

New Developments And Rental Contracts

New developments have attracted a surge in new rental contracts, showing strong demand for newly completed properties. Tilal Al Ghaf, Bluewaters Island, Emaar Beachfront, Town Square, and Downtown Dubai saw significant increases in rental contracts. Tilal Al Ghaf led with a 603% increase, followed by Bluewaters Island at 365%, Emaar Beachfront at 266%, Town Square at 65%, and Downtown Dubai at 30%. Dubai’s population growth continues to fuel the real estate market. 

New residents drive demand for both rentals and homeownership. Many new residents choose to rent for their first one or two years before purchasing properties, contributing to the dynamic nature of the market.

Future Outlook

The Dubai real estate market is expected to continue growing. Ongoing population growth, new developments, and strong demand from both residents and investors will drive this growth. While there will be an influx of rental supply in the coming years, the market is likely to absorb this supply due to diverse demand pools, including residents, second-home buyers, and investors targeting the tourist market.

Arshad Darbar’s Thoughts

Arshad Darbar, a seasoned real estate expert with several years of experience in the Dubai market, views the recent surge in real estate sales as a positive indicator of the market’s health and potential. He believes the impressive $52.5 billion in sales during the first half of 2024 showcases Dubai’s growing appeal as a global real estate hub.

According to Darbar, the significant increase in property prices, particularly in the villa and apartment sectors, reflects the robust demand that continues to outpace supply. Darbar emphasizes that this trend is not merely a short-term spike but rather a sustained growth pattern driven by various factors. He highlights the importance of Dubai’s strategic initiatives, such as relaxed visa regulations and the introduction of more affordable mortgage products, which have made homeownership more accessible.

Additionally, the continuous influx of new residents and the city’s expanding infrastructure contribute to this upward trajectory. Darbar also points out that the maturing secondary market and the steady rise in off-plan sales are indicative of investor confidence in Dubai’s long-term real estate prospects. 

He notes that the rental market’s growth further underscores the city’s dynamic nature, where new developments quickly attract tenants, ensuring a balanced demand and supply equation. Overall, Darbar remains optimistic about the future of Dubai’s real estate market, forecasting continued growth and stability.

Conclusion

Dubai’s real estate market has demonstrated impressive resilience and growth in the first half of 2024. Property sales have surged, prices have risen, and the rental market has seen significant activity. This boom is a testament to the city’s robust economic fundamentals and its appeal to both local and international investors. Developers are launching new projects at a rapid pace to meet the increasing demand for residential and commercial properties. 

Key areas such as Downtown Dubai, Dubai Marina, and Jumeirah Village Circle are experiencing heightened interest. Additionally, the government’s investor-friendly policies and infrastructure development have further bolstered confidence in the market. With these factors in play, Dubai’s real estate sector is poised for continued expansion, ensuring a vibrant and dynamic market for years to come. This sustained growth underscores Dubai’s status as a leading global real estate hub, attracting investors and residents from around the world.