How was Quarter 1 for the Real Estate of Dubai?

How are the Market Trends?

• The study found out that the secondary market of luxurious properties are doing very well in the year 2024. But one thing to notice is that the resale of extra luxurious properties whose prices are more than AED 10 million are showing some flat numbers after several years of huge growth and more market activities. 
• The pricing of rents are also climbing a lot and the availability of mortgages are becoming more easy to get. This is a good change which is being seen as more and more renters are now looking to own a house in Dubai. 

Dubai is still very demanding.

Dubai was a popular city in UAE but now in 2024 this city has become a well-known destination in the world because of its world-class villas, apartments, townhouses, and more. With good results in the first four months of this year, people from countries like India and Russia are still buying housing properties in posh locations in Dubai. The investors from these countries are also looking to buy newly launched properties for a good return. 

How is The Sales Market Doing?

• There has been a noticeable increase in the total pricing of sales transactions which has risen to 26%, and the number of transactions is up by 22% compared to the previous year. This means that 2024 is also going to be very busy for the property market in Dubai.
• If we look at the quarter-on-quarter situation like Q4 2023 and 2024 then it shows a little slowdown in the secondary market with an 11% drop in transaction numbers, especially in the luxury properties that cost more than AED 10 million but the sales price of apartments and studios saw a double digit increase.

Community-Specific Trends.

• Average sale prices have risen in nearly all types of properties in several communities. Notably, Jumeirah Islands, The Lakes, and Jumeirah Park have seen some huge increases.
• Jumeirah Golf Estates has shown stable results despite a huge rush of lower-priced townhouse sales which have brought down the average, indicating a vibrant but changing market situation.

A Look Into Rental Market In Some Locations.

• Rental prices have surged across all studied communities, with significant year by year increases seen in popular locations like Palm Jumeirah and Bluewaters Island.
• The continuous increase in rent, coupled with attractive mortgage rates, is attracting a lot of people who were living on rents to buy a house in Dubai. 

Some New Countries in Buyers List.

• The primary buyers in the market are from the United Kingdom and India, with a good number of people from Lebanon, the Netherlands, and Canada. This shows that there is a change from previous years, with Russia dropping out of the top ten buyer nationalities which is a huge change but Russians are still buying properties.
• We also saw that Chinese are also buying properties in Dubai and some big companies of China are investing in locations like Dubai South where the new international airport is going to be built. So, the commercial activities in Dubai are also attracting a lot of investors from other countries like China who were not in the list before.

What Professionals Think For Now.

• The introduction of new properties, especially in sought-after areas like Palm Jumeirah, is expected to slow the secondary market's pricing and activity because the buyers are now more interested towards new or off-plan properties.
• Professionals working in Dubai Housing think that the sales of mid-priced properties and the properties that are priced less than AED 1 million are going to be sold in huge quantities. The builders like Damac Properties and Emaar Properties are also following these situations and launching more and more apartment projects like ELO 2 and Emaar Park Lane.

Conclusion

The price of the properties in Dubai are increasing but for apartments or properties that are costing less than AED 9 million. Places like Palm Jumeirah is still maintaining its demand which can be seen in the incense of the rental price in this man-made island. The studies in 2024 are showing a good market situation for the first quarter and is expected to do so for later periods of this year.