Dubai’s real estate market witnessed strong growth during the first quarter of 2024, driven by an increase in the expatriate population, changes in real estate investors’ policy towards the Golden Visa, and strong performance in the non-oil sectors. Savills International Real Estate Services Company issued the Dubai residential real estate market report for the first quarter of 2024, revealing record results for this quarter in the year 2024.
Andrew Cummings, Head of Residential Real Estate Agency at Savills Middle East, said: “The Dubai real estate market has continued its upward trajectory, driven by many factors, including population growth, economic resilience, business confidence, and the booming tourism and hospitality sector.”
Off-plan Sales Boom
Off-plan sales witnessed a notable jump of 73% compared to the previous quarter, accounting for 63% of total transactions in the first quarter of 2024. This increase in interest can be attributed to the strong demand for high-quality assets from reputable developers, along with Attractive incentives offered to buyers during project launches.
Market activity is largely concentrated in the sub-markets of Southeast Dubai, specifically in smaller markets, such as Jumeirah Village Circle, Arjan, Dubai Hills Estate, Meydan One and DAMAC Hills 2. And in other areas. Locations such as Business Bay, Downtown Dubai, Dubai Marina and Jumeirah Lake Towers maintained strong demand.
Apartments
Apartments continued to outperform the real estate market, accounting for 83% of total transactions, while initial sales accounted for 63% of demand. It is worth noting that villa transactions also increased in prominent locations, including DAMAC Lagoons, DAMAC Hills 2, The Valley and Tilal Al Ghaf.
Alec James Smith, Sales and Leasing Director at Savills Middle East, said: “Nearly 5,000 units were released to the market in the first quarter of 2024. Notable launches included the Mercedes-Benz Places project, Claydon House by Ellington” and “Franck Muller Eternitas” Tower in Dubai Marina, and Vida Dubai Hills by Emaar, with residential apartments accounting for 84% of these launches, represents a sign of confidence in this sector of the market in the future.”
Luxury Real Estate
Luxury properties still maintain their appeal, but the increase in demand for affordable options reflects a practical approach by buyers. More than 1,000 transactions were recorded, each of which exceeded 10 Million Dirhams in value in the first quarter of 2024, representing a growth of 41% year-on-year. The quarter witnessed a 51% increase in apartment transactions valued at 10 Million Dirhams or more compared to the previous quarter. In this regard, Palm Jumeirah, Business Bay and Bluewaters Island top the list of high-end locations in terms of prices per square foot for apartments. Meanwhile, Dubai Hills, Palm Deira, District One and Tilal Al Ghaf have the highest prices per square foot for villa transactions.
The Dubai real estate market has maintained its upward trajectory in capital value growth.