Dubai Real Estate Market report – First 6 months of 2024

Continuous Growth and Record Sales in 2024

The Dubai real estate market has seen continuous growth with record sales across all sectors. Notably, the end-user market which increased from 2020, due to the stability of the Emirate, has seen villa/townhouse prices increase due to low supply.

Luxury properties in Dubai continue to attract high-net-worth individuals and investors looking for premium real estate opportunities. The city’s iconic landmarks, upscale amenities, and luxurious lifestyle offerings contribute to its appeal as a prime real estate destination.

The number of individuals in Dubai with liquid investment wealth — or assets that can be readily converted to cash — of $1 million or more increased by 78% between 2013 and 2023 to 72,500, according to the World’s Wealthiest Cities Report 2024 from Henley & Partners, in collaboration with New World Wealth.

It’s worth noting that Dubai’s real estate market is subject to various factors, including economic conditions, government policies, and global events.

Population – Residents

Dubai is on track to hit the 2040 plan of population growth with an increase of residents from 3,661,983 at the beginning of Q1 of 2024, to 3,745,005 as of 12th July 2024, an increase of 2.3%, compared to 1.45% increase in the same period of 2023. If the population increases at this steady rate the Emirate will reach just over 5.5m by 2040.

(Source: Dubai Statistics Center)

Is the market heading for a downtown? Are prices increasing too much?

The answer lies in the simple rule of economics, the Emirates is getting an additional 8,000 plus residents per month, the demand outweighs supply in the majority of projects being launched and sold out, and ready properties, correctly priced are selling with a maximum of 4 weeks of being on the market.

UBS reported in 2022 that Dubai was ‘fair valued’ and is often compared to the top ten most expensive cities to live in, but the prices do not match by far. The additional appeal is Dubai’s Government, they ensure safety, good education, medical care, and a good life for multiple nationalities. With strategic planning stretching to 2070, Dubai is organized, regulated, and accommodates all industries as well as being in the center of the world with great travel options for business and pleasure.

The premiums and returns on equity show that there are large returns to be made on buying off-plan or ready properties, and we can confidently say that for at least the next 2-3 years.

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Source: Property Monitor