Dubai will be the hotspot for property and real estate in 2024
With tourism booming, Dubai's real estate sector will keep growing
Real estate in Dubai is projected to keep its growth momentum. Prices are expected to rise by twenty to twenty-five per cent yearly as fresh investors enter the market. Throughout 2023, real estate registered sustained growth based on new consumer preferences, increased foreign confidence and new opportunities.
Multiple factors are expected to contribute to the UAE's real estate market growth in 2024. Property Finder, the leading real estate marketplace in the UAE, recently organized an annual recognition meeting where they gathered insights from top players in the market. Property prices in the UAE are anticipated to continue rising due to increased buyer demand. However, developers and analysts predict a possible turn in the second half 2024 that could impact the luxury market.
According to Haider Tuaima, director and head of real estate research at ValuStrat, residential property prices in Dubai are expected to increase by 5% to 7%. Meanwhile, prices in Abu Dhabi are set to rise between 3% and 5%. Tuaima also stated that the real estate market will remain robust for three to four months, characterized by transactional solid activity, price growth, and rental increases.
However, in the middle of next year, probably in summer, "we could see an inflexion point where we could see a turn in the curve, and if it happens, then it will hit the high-end luxury market first", he said. The UAE's property market remained strong this year, with transaction volumes rising in Dubai and Abu Dhabi amid government initiatives such as residency permits for retired and remote workers and overall economic growth.
Dubai recorded 116,116 new property transactions worth about Dh429.6 billion ($117 billion) in the first nine months of 2023, according to the latest data from the Dubai Land Department. Total transactions in the emirate increased by 33.8 per cent annually, while values rose more than 36.7 per cent. Property deals also grew in Abu Dhabi amid higher demand from domestic and GCC investors.
Abu Dhabi recorded 10,557 real estate transactions worth Dh46.33 billion in the first half of 2023, the emirate's media office reported in July, citing data from the Department of Municipalities and Transport.
The value of the deals more than doubled during the six months while the volume of transactions, including property sales and mortgages, rose by 41 per cent annually. In Dubai, residential prices rose by 19.6 per cent annually in the third quarter, with average apartment and villa prices increasing by 19.7 per cent and 18.9 per cent, respectively, according to CBRE. In November, average apartment prices in Dubai increased by 18.3 per cent annually to Dh1,374 per square foot, while villa prices grew 22.2 per cent to Dh1,679 per square foot, a separate report from CBRE mentioned this month. The world's super-rich are also spending heavily to purchase property in the UAE, aiding growth in the real estate market.
Recent predictions show that Dubai's real estate market will remain popular for foreign and local investors looking to purchase properties there. The market may see record-breaking sales in 2024.