Trends in the real estate market in Dubai and the UAE

A Thriving Dubai Real Estate Market: Q1 2024 Overview

property values. Both residential and commercial properties are experiencing increased demand, driven by the influx of foreign investors and residents.

The emirate’s appeal lies in its world-class infrastructure, cutting-edge technology, and favorable business climate. Coupled with attractive visa and tax policies, Dubai continues to draw a steady stream of international buyers. This growing demand is fueling the real estate market and pushing prices upward.

As we look ahead, Dubai’s real estate market is poised for further growth. The emirate’s reputation as a global hub, combined with its ongoing development initiatives, makes it a prime destination for investors and homebuyers alike.

Dubai’s Real Estate Market Remains Strong in Early 2024

Dubai’s real estate market has maintained its upward trajectory into 2024, echoing the key trends that characterized the previous year. A wave of new projects continues to flood the market, meeting sustained demand from buyers. Luxury properties, in particular, have witnessed a surge in interest, reflecting a growing appetite for high-end living.

Rental and purchase costs across all property types have been steadily rising, indicative of the market’s strength. The focus on sustainability and eco-friendly development remains a prominent theme, with developers incorporating green initiatives into their projects. Additionally, the industry has embraced technological advancements, introducing innovative solutions to enhance the real estate experience.

High demand for homes

The population of Dubai has surged by approximately 100,000 in 2023, according to the Dubai Statistics Center. This rapid growth has fueled a strong demand for housing in the emirate. In fact, 2023 witnessed a record-breaking 133,000 property transactions, marking a threefold increase compared to the previous year.

As the number of residents in Dubai continues to rise in the coming years, the trend of buying property instead of renting is expected to persist. The soaring rental costs have prompted many foreigners to opt for homeownership. This shift is likely to further drive the real estate market in 2024.

Growth in real estate value

The real estate market in the UAE is booming. In 2023, the value of under construction and finished properties increased across all segments – affordable, mid-range, and premium. Experts predict that prices will continue to rise in 2024, with an average increase of 5-7%.

Muhammad Binghatti, CEO of Binghatti, one of the UAE’s largest development companies, is even more bullish on the market. He predicts that property prices could increase by as much as 12-14% in 2024. This is due to a number of factors, including:

• • Population growth: The UAE’s population is growing rapidly, which is driving demand for housing.
  • Declining mortgage interest rates: Mortgage interest rates in the UAE are expected to decline in 2024, making it more affordable for people to buy homes.
  • Influx of wealthy people: The UAE is attracting a growing number of wealthy people from around the world, who are willing to pay high prices for luxury properties.

Overall, the outlook for the UAE real estate market is very positive. Prices are expected to continue to rise, and there is strong demand for all types of properties.

Boom in the luxury housing segment

In recent years, Dubai has witnessed a surge in popularity among the world’s ultra-wealthy. This influx has fueled an unprecedented demand for premium real estate, far outpacing the supply. Prime neighborhoods like Downtown Dubai, Dubai Marina, and Palm Jumeirah have been particularly sought after by millionaires.

The trend of affluent individuals seeking exclusive luxury properties in Dubai shows no signs of abating. As the city continues to attract the global elite, collaborations with renowned brands from fashion, automotive, and hospitality sectors are expected to flourish. In fact, Dubai has emerged as a global leader in branded housing, with projections indicating a doubling of units in this segment by 2030.

Growth of supply in the secondary real estate market

Dubai Developers to Deliver 50,000 New Homes in 2023

Dubai’s real estate market is booming, with developers planning to deliver 50,000 new homes in 2023. This represents a significant increase from the previous year, and is expected to help meet the growing demand for housing in the emirate.

In addition to the 50,000 new homes being built this year, there are also another 67,000 ready properties on the market. This means that there will be a total of 117,000 new homes available for purchase in Dubai in 2023.

The strong demand for housing in Dubai is being driven by a number of factors, including the emirate’s growing economy, its attractive lifestyle, and its reputation as a safe and stable place to live.

The increase in the number of new homes being built in Dubai is also expected to put downward pressure on prices. However, prices are still expected to remain relatively high, due to the strong demand for housing and the limited supply of land available for development.

Overall, the Dubai real estate market is in a strong position. The large number of new homes being built this year is expected to help meet the growing demand for housing and put downward pressure on prices.

Digitalisation and innovation in the real estate industry

Dubai, a global leader in innovation, is at the forefront of digital transformation. The city’s rapid adoption of cutting-edge technologies like artificial intelligence, proptech, and 5G is revolutionizing real estate services.

Financial transactions have become seamless and secure, with Dubai pioneering the use of cryptocurrency for real estate purchases. As we move into 2024, the integration of IoT and other advanced technologies into residential areas will further enhance the real estate experience.

Online platforms offering buying, selling, and renting services will continue to expand, providing residents with greater convenience and choice. Dubai’s commitment to technological advancement solidifies its position as a leading real estate destination.

Sustainability principles