Dubai’s property market has witnessed substantial growth and resilience in recent months. During the second quarter of 2024, Dubai saw an 11.5 percent increase in residential sales transactions and a 2.7 percent rise in residential rental values.
The latest ‘Real Estate Research Second Quarter 2024’ report by ValuStrat states that despite the record rainfall in April, Dubai’s effective response helped control the damage, ensuring that market activity and property valuations remained robust in the subsequent months. Therefore, the ValuStrat Price Index for Residential Capital Values increased by 6.4 percent quarterly and 28.2 percent annually, reaching 178.2 points.
Prime properties set record highs
Prime properties in Dubai saw prices rise by 29.9 percent annually and 6.5 percent quarterly, setting a new record at 184.3 points. Meanwhile, premium apartments are catching up with villas, with capital gains increasing by 23.1 percent annually and 4.8 percent quarterly, reaching 156.5 points. Notably, Palm Jumeirah surpassed the 2014 price highs for apartments in Dubai, the first apartment location to do so.
The report also reveals that the valuations of apartment units in Dubai continued to rise, increasing by 5.4 percent quarterly and 23.4 percent annually, reaching 146.7 points. Meanwhile, the villa market remained robust, marking an annual increase of 33.4 percent and a slightly higher quarterly growth of 7.3 percent during Q2 2024.
Off-plan transactions surge
Dubai’s property market saw a 61.4 percent annual surge in transactions of off-plan contract registration and a 19.1 percent quarterly rise, equivalent to investments worth AED59.9 billion. Despite the rise in transactions, the average ticket size of off-plan homes fell 10.5 percent annually to AED2.4 million.
The report reveals that top off-plan locations in Dubai’s property market during Q2 included Jumeirah Village Circle, Business Bay and Meydan One. Conversely, ready secondary home transactions in Dubai saw a 1.7 percent quarterly decline but a 4.8 percent annual rise, equivalent to investments worth AED29.3 billion. Notably, the average ticket size of ready properties grew by 7.6 percent quarterly and 4.7 percent annually to AED2.5 million.
“The decline in transaction volumes calls for a closer examination of market dynamics as stakeholders navigate this evolving landscape,” stated Haider Tuaima, director & head of real estate research at ValuStrat.
Read| Dubai’s office stock grows by 20,000 sq. m., Abu Dhabi adds 7,500 sq. m. in Q2 2024: Report
Office sales and values rise
Another notable expansion in Dubai’s property market is office spaces, which saw a 31.7 percent annual surge in unit valuation and a 9.4 percent quarterly rise, marking the 13th consecutive quarter of growth and the highest quarterly increase in a decade. This surge reflects a sustained demand and limited supply of high-quality office space in well-connected locations.
In addition, office sales in Dubai rose 9.5 percent quarterly and 1.9 percent annually. Meanwhile, asking rents remained stable after record highs in Q1 2024 but recorded an increase of 31.2 percent annually.
“The upward trend in valuations and rents across various segments shows that the market cycle is in its upswing stage, demonstrating resilience and growth, making Dubai a key player in the global property market,” added Tuaima.
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