Dubai to Hand Over a Record 38,174 New Homes in 2024

Dubai’s real estate market is set to achieve a new milestone in 2024 with the handover of a record 38,174 new homes. This significant development, highlighted in a recent report by consultancy ValuStrat, underscores the robust growth and strong demand within the market.

Surging Completions in 2024

As of the first half of 2024, Dubai completed 6,939 apartments and 2,145 villas. This makes up 20% of the estimated completions for the year. Significant villa completions in the second quarter included Silver Springs 3 in Damac Hills with 258 villas and Murroj Al Furjan West with 161 units. Notable apartment completions during the same period included Creek Views 1 and 2, which added 634 and 587 apartments, respectively.

Future Projections

Looking ahead, ValuStrat estimates that around 91,718 apartments and 28,385 villas are under construction in Dubai, with expected completion by 2028. These projects are spread across key locations such as Jumeirah Village Circle, Business Bay, and Jumeirah Lakes Towers.

Market Insights and Trends

Haider Tuaima, director and head of real estate research at ValuStrat, notes that Dubai’s real estate market is thriving with strong demand. The market cycle is in an upswing stage, with rising valuations and rents across various segments. As the market stabilizes and matures, strategic adjustments will be crucial to maximize investment returns.

Government Initiatives and Economic Growth

The recent boom in the UAE real estate market can be attributed to government initiatives such as extending the 10-year golden visa program and granting residency permits to remote workers and retirees. These efforts, coupled with the UAE’s economic diversification, have significantly supported the property market.

Record-Breaking Luxury Market

A report by Knight Frank revealed that sales of properties priced at $10 million or more nearly doubled to $7.6 billion last year, setting a record for Dubai’s luxury prime market. This impressive performance surpasses both London and New York.

Impact of Wealth Creation

Dubai has become a favored destination for wealthy individuals looking to diversify and secure their assets amidst global geopolitical volatility. The increase in global wealth creation has greatly influenced Dubai’s real estate market, as highlighted by real estate broker Betterhomes.

Villa and Apartment Market Performance

Dubai’s villa market showed remarkable strength, with capital values increasing by 33.4% annually and 7.3% quarterly. Top performers included Palm Jumeirah, Jumeirah Islands, Dubai Hills Estate, and Emirates Hills. Apartment valuations also saw significant growth, rising 5.4% quarterly and 23.4% annually. Notable performers included Dubailand Residence Complex, Town Square, Al Quoz Fourth, and Palm Jumeirah.

Resilience Amidst Challenges

Despite record rainfalls in April causing severe flooding in many areas of Dubai, the real estate market remained resilient. Developers and authorities responded promptly, effectively containing and controlling the damage.

Transaction Trends

In the second quarter, Dubai recorded 7,921 mortgage transactions and 13,834 cash transactions of ready properties. Mortgage transactions accounted for Dh26 billion ($7.1 billion) of the total sales value, while cash transactions made up Dh35 billion. Off-plan registration transactions saw a 61.4% annual increase, translating into investments worth Dh59.9 billion.

Rental Market Growth

Dubai’s residential rental values increased by 2.7% quarterly and 10.8% annually. Average annual rents for villas rose by 1.1% quarterly and 3.5% annually to Dh408,200. Apartment rents increased by 16.9% annually and 3.8% quarterly to Dh89,100.

Conclusion

In conclusion, as Dubai continues to grow and evolve, the real estate market remains a dynamic and attractive sector for investors. With a record number of new homes set to be handed over in 2024, the city’s property market is poised for continued success and development.