The Q3 2024 Real Estate Market Report, issued by Asteco Real Estate Services, revealed an active real estate market with continued momentum in Dubai, and expected that the Dubai government’s proactive approach to strengthening the emirate’s physical, social, technological and legal infrastructure, along with solid foundations, will support market conditions and enhance its resilience to external factors. According to the report, the Dubai market witnessed an increase in the delivery of new residential units during the third quarter of 2024, especially in the residential apartment sector, which witnessed nearly 50% of completions, with around 8,100 residential units delivered. The fourth quarter of 2024 is expected to see the delivery of an additional 14,900 residential units, including 11,800 apartments and 3,100 villas, although some deliveries may be delayed until 2025. While new office completions remained limited, the market saw several new projects launched, including large Grade A projects.
Apartment and villa rents continued to rise with quarterly increases of 3% and 2% respectively, driven in part by the revised rental index by the Dubai Real Estate Regulatory Agency (RERA), which allows some landlords greater flexibility to increase rents upon renewal of contracts.
Apartment and villa sales prices increased by 3% and 4% respectively, compared to the previous quarter. Off-plan sales activity remained strong, driven by attractive payment plans and the reputation of developers. This strong demand has led many developers to offer strong payment plans of up to 80/20 or 75/25. While these schemes improve affordability for some buyers, they pose challenges for low-income individuals and families, particularly those seeking larger apartments or villas.
Sales prices in the city centre continued to grow, particularly in the office sector. The office market achieved average quarterly and annual increases of 5% and 21% respectively, driven by strong economic and business conditions and a shortage of supply, particularly in the A and B+ grades.