Dubai Property Market Booms in Q2 with Record Transactions and Rising Prices

Dubai’s real estate sector witnessed a surge in activity during the second quarter of 2024, with both transaction volumes and property values experiencing significant increases.

Strong Growth Across All Sectors

A comprehensive study by UAE real estate company Primo Capital highlights a thriving Dubai property market. Key findings include:

• Residential Transactions Up 20.5% Year-on-Year: Overall residential transactions reached an all-time high of 35,310, driven by a 23.9% increase in off-plan property deals and a 15.2% rise in secondary market transactions.
• Average Residential Prices Up 20.7% Year-on-Year: The average cost of a home in Dubai climbed by over 20%, with both apartments (20.4%) and villas (22.1%) experiencing significant price hikes.
• Commercial Rents Soar: Commercial real estate saw impressive growth, with average rents increasing by 22.2% annually and 17.1% quarter-on-quarter. This rise reflects the growing demand for office space in Dubai’s thriving economy.
• Industrial Rents Up 14.3% Year-on-Year: The need for warehousing and storage facilities drove a 14.3% rise in annual rental rates for industrial and logistics properties.

Investor Confidence Remains High

The Dubai property market’s robust performance showcases enduring investor confidence. Despite wider economic shifts, Dubai continues to be a top global destination for real estate investment. This trend reflects a dynamic market sentiment and a belief in Dubai’s long-term potential.

Growth Beyond Dubai

While Dubai takes center stage, the report highlights positive developments in other UAE emirates:

• Abu Dhabi Residential Market: Average apartment and villa prices in Abu Dhabi experienced moderate increases of 4.3% and 2.3% year-on-year, respectively, indicating steady growth in the emirate’s residential sector.
• Retail Rents Rise: Both Abu Dhabi and Dubai saw significant increases in retail rental rates over the past year (14.7% and 10.5%, respectively), suggesting a growing demand for retail space due to increased commercial activity.

Looking Ahead: Continued Growth Expected

Primo Capital real estate agents anticipate Dubai’s property market to sustain its growth trajectory. Factors like a strong UAE economy, attractive returns on investment, and favorable government policies contribute to this optimistic outlook.

Investors are increasingly drawn to Dubai’s property market due to its high return on investment potential and customizable development options, making it a compelling alternative to established centers like New York, London, Singapore, and Hong Kong.

Also Read: UAE Economy Poised for Continued Growth in 2024