In May 2024, Dubai’s real estate market demonstrated remarkable growth, continuing its upward trajectory with significant gains in both apartment and villa sectors. We can’t forget the record rainfall Dubai recevied in April 2024, delivering some areas recorded more than 250mm of rain in less than 24 hours. This did shut down the city for a few days but given it’s reslience and tenacity, Dubai was back on it’s feet in a way, selling, buying and renting real estate like no tomorrow.
Capital Values
The weighted average value per square foot for residential properties was AED 1,274, with an average sale price of AED 2,676,067 across the Emirate. This represents a year-over-year increase of 27.2% and a month-over-month increase of 2.1% since April 2024 which itself saw a significant boost of 21% since March 2024.
Villas recorded a weighted average value per square foot of AED 2,091 and an average price of AED 3,968,125 reflecting a 32.5% annual rise and a 2.4% monthly gain.
Apartments saw a weighted average value per square foot of AED 1,147, with an average capital value of AED 1,525,003, marking a 32.5% annual increase and a 2.0% monthly growth.
Housing Units Entering the Market
Dubai is poised to see 35,000 units enter the real estate market in 20241. As such, the city saw a notable increase in ready home transactions, which surged by 8.1% year-over-year and 45.9% month-over-month. Prime home sales were particularly strong, with 16 transactions exceeding AED 30 million in luxury locations such as Palm Jumeirah, Dubai Marina, and Emirates Hills.
Market Dynamics: Off-Plan vs. Ready Properties
The market dynamics revealed a clear preference for off-plan properties, which accounted for a significant portion of transactions. Registrations for off-plan homes saw a 76.3% year-over-year increase and a 41.6% monthly rise, hitting a record monthly high of over 10,000 transactions. These transactions accounted for a whopping 69.4% of all residential sales illustrating the confidence end users and investors have in local developers to deliver the projects they are going to be paying for for the next few years.
Leading Dubai real estate developers market share May 2024
Off plan sales were concentrated in Jumeirah Village Circle (8.3%), Business Bay (6.6%), Dubai Marina (5.9%), Downtown Dubai (5.3%), and Jumeirah Lake Towers (3.9%).
Key Insights
Despite record rainfall in April, strong market demand mitigated any potential negative impact on home valuations. Villa capital values continued their steady growth, while apartment valuations experienced accelerated gains, reflecting strong investor confidence and a favorable investment climate in Dubai.
Conclusion
Dubai’s real estate market in May 2024 showcases a thriving and competitive landscape, with substantial opportunities for investors. The continuous growth in both the villa and apartment sectors highlights the resilience of the market and its appeal to high-net-worth individuals and investors worldwide. The strategic location, economic stability, and ongoing development initiatives make Dubai a prime destination for real estate investments.
The data underscores a robust market with significant potential for future growth, reinforcing Dubai’s position as a leading global real estate hub. As always, keep checking in with Viewit for what’s happening in the Dubai real estate market.
Source: Valustrat May 2024 real estate report