What Is Going on in Dubai?
- Trends in Residential Sector
The Dubai Land Department (DLD) predicts that property sales in Dubai in the first half of 2024 amounted to AED 150 billion, a 7% rise from the same time in 2023. Rising investor trust and a more friendly economic environment help to rise of this property market.
Housing prices and rental yields as of mid-2024, data from a known company shows that house prices have increased by around 5% year-on-year. Apartment average price per square foot is AED 1,250 and villas average is around AED 1,850.
Yields from Rent are good and resilient in the rental market. Among other cities in the world, Dubai's average rental yield for housing properties is 6.2%, which is among the higher according to Dubai Housing. Strong yields from prime sites like Downtown Dubai and Dubai Marina draw local as well as foreign investors.
- Situation of Commercial Properties
Including retail stores and office areas, the commercial property market has had more changing results. In the mid-2024 demand for office spaces has somewhat recovered where the vacancy percentage dropped from a peak of 15% in 2022 to about 12%. Luxury office spaces on DIFC and Sheikh Zayed Road now have average rates rising by 3% year-on-year. The retail sector has been very active, with demand recovering at good speed after the pandemic. In 2024, high footfall locations including Dubai Mall and Mall of the Emirates would have seen rental rates rise by 4%.