Dubai real estate sector sees 50% increase in handovers in Q3, 14,900 homes expected to arrive in Q4
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Dubai real estate sector will see healthy pipeline of residential property handovers until the end of the year, says Asteco. The Dubai real estate sector saw a surge in new handovers in Q3 2024, particularly in the apartment segment, which witnessed nearly 50 per cent increase in completions, according to Asteco’s Q3 2024 real estate report.
It said that approximately 8,100 units entered the market in that time. Q4 2024 is expected to see the handover of an additional 14,900 residential units, consisting of 11,800 apartments and 3,100 villas, although some handovers may spill over into 2025.
The report also shows that the Dubai government’s proactive approach to enhancing the Emirate’s physical, social, technological and legal infrastructure, combined with robust underlying fundamentals, is expected to contribute to solid market conditions and resilience against external factors.
Dubai real estate handovers
Apartment and villa rents continued to rise, with quarterly increases of 3 per cent and 2 per cent respectively, partially influenced by the updated RERA rental index, which has given certain landlords the flexibility to request larger rent increases upon lease renewal.
Sales prices for apartments and villas increased by 3 per cent and 4 per cent, respectively, compared to the previous quarter.
Off-plan activity remained robust, driven by attractive payment plans and developer reputation.
The sustained high demand for off-plan properties has led some developers to introduce aggressive payment plans, with structures reaching as high as 80/20 or 75/25, which may present challenges for lower-income individuals and families, particularly those seeking larger apartments or villas.
Dubai sales price growth continued unabated, particularly in the office sector. The office market experienced average quarterly and annual increases of 5 per cent and 21 per cent, respectively.
This surge is primarily attributed to strong economic and business conditions, combined with a limited supply, particularly of Grade A and Grade B+ properties.