Dubai Property Market Records 21% Price Increase and 35,310 Transactions in Q2

The Dubai real estate market experienced unprecedented activity in Q2 2024, recording over 35,300 transactions—a remarkable 20.5% increase compared to Q2 2023. This surge underscores Dubai's continued appeal as a prime destination for real estate investment.

Key Highlights from Q2 2024:

Residential Real Estate:

• Transaction volumes rose by 20.5%.
• Off-plan property transactions increased by 23.9%.
• Secondary market transactions grew by 15.2%.
• Average home prices increased by 20.7%, with flats up by 20.4% and villas by 22.1%

Commercial Real Estate:

• Rents surged by 17.1% quarter-on-quarter, reflecting strong demand from expanding businesses,

Industrial Real Estate:

• Rents grew by 14.3% year-on-year due to higher demand for warehouses and storage facilities.

Abu Dhabi Market:

• Retail rents increased by 14.7% year-on-year. Residential property prices rose by 2.3% for villas and 4.3% for apartments.

These trends highlight the robust growth and market confidence in Dubai's real estate sector

Hospitality and Retail Real Estate Performance in the UAE

Hospitality Sector

• The UAE's hospitality industry remained resilient, with a 0.9% increase in average occupancy rates despite high visitor numbers.

Retail Sector : Retail rental rates saw significant increases:

• Abu Dhabi: 14.7% rise in average rentals year-on-year
• Dubai: 10.5% rise in average rentals year-on-year.
• These increases indicate a supply-demand mismatch and heightened commercial activity.

Market Outlook and Predictions

Continued Growth

• Real estate agents predict ongoing growth in UAE real estate due to:
• A strong economy.
• High ROI
• Capital returns
• Favorable government policies.

Developer Focus

• Developers are shifting towards customer-centric construction, allowing buyers more customization options.

Investment Appeal

• The UAE real estate market offers steady ROI and higher capital gains, attracting international investors more than major cities like New York, London, Singapore, and Hong Kong.

Dubai's real estate sector continues to demonstrate resilience and dynamism, positioning itself as a global leader in property investment. The sustained growth and robust market trends are a testament to the confidence investors place in the UAE's real estate market.

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