Record-breaking Growth in Dubai’s Real Estate Market
Dubai’s real estate market has seen exponential growth over the first quarter of 2024,
driven by the increase in expatriate population, real estate investor policy changes to the
Golden Visa, and a strong performance in non-oil sectors. Global real estate services
provider Savills released the Dubai Residential Market – Q1 2024 report, which revealed a
record-breaking first quarter in 2024.
Focus on Dubai Southeast Submarkets
Market activity is concentrated largely in the Dubai Southeast submarkets, particularly in
micro-markets such as Jumeirah Village Circle (JVC), Arjan, Dubai Hills Estate, Meydan
One, and Damac Hills 2. Across other areas, demand remained robust in locations such
as Business Bay, Downtown Dubai, Dubai Marina, and Jumeirah Lake Towers (JLT).
Apartments continued to dominate the market, accounting for 83% of all transactions,
with primary sales accounting to 63% of the demand. Meanwhile, villa transactions
surged as well, with notable locations including Damac Lagoons, Damac Hills 2, The
Valley, and Tilal al Ghaf.
Demand Shift towards Affordable Options
High-end luxury properties remain attractive, but the surge in demand for affordable
options reflects a pragmatic approach by buyers. In the first quarter of 2024, over 1,000
transactions exceeding AED 10 million were recorded, representing 41% year-on-year
growth. Additionally, the quarter saw a 51% increase in transactions involving apartments
priced at AED 10 million or more compared to the previous quarter. Notably, Palm
Jumeirah, Business Bay, and Bluewaters Island lead the list of upscale locations in terms
of per square foot rates for apartments. Meanwhile, Dubai Hills, Palm Deira, District One,
and Tilal Al Ghaf command the highest per square feet rate in villa transactions.
Notable Property Launches in Q1 2024
In the first quarter of 2024, approximately 5,000 units were introduced to the market.
Notable launches included Mercedes-Benz Places, Claydon house by Ellington, Franck
Muller Aeternitas Tower in Dubai Marina, and Vida Dubai Hills by Emaar, with apartments
making up 84% of these launches, signalling the confidence in this market segment
going ahead,” Alec James Smith, Director of Sales and Leasing at Savills Middle East,
commented.
Rise in Luxury Property Transactions
Rental rates in Dubai saw an average increase of 7% across the city, with apartments
having experienced an 8% rise, while villas grew by 6% quarter-on-quarter.
Cumming concluded, “The recently revised rental index may lead to higher rents in
specific areas, potentially ranging from 10% to 20%. As a result of this, tenants might
consider relocating, downsizing, or even exploring property ownership. Dubai’s
residential real estate market is expected to perform well in the near future, given the
upward trend in both rentals and capital value appreciation.”
