The Demand For Mid-Priced Properties In Dubai

In 2023, Dubai's economic fortitude continues unabated, achieving a notable 3.2 percent growth rate by mid-year. This resilience comes amidst broader global economic challenges and regional geopolitical tensions. Dubai's economy is buoyed by particularly strong performances in logistics and warehousing, and the hospitality sector.

Real estate has been a cornerstone of Dubai's economic growth, registering a 3.6 percent increase in GDP contribution. This upturn owes much to the influx of investors and new inhabitants drawn by Dubai’s conducive business climate and attractive lifestyle.

There has been a marked rise in the value of apartments across Dubai's more budget-friendly areas, with the apartment sector and projects like DAMAC Golf Gate 2 experiencing or will see an unprecedented 11 percent year-on-year growth — the most significant uptick in over a decade. A study of this market underscores this, pointing to record-breaking villa price points that outstrip figures from June 2014. Notably, Jumeirah Islands, Emirates Hills, and Palm Jumeirah are seeing the highest climbs, underscoring the appeal of Dubai to the ultra-rich.

A report indicates a striking 209 percent increase in the five-year average sales volumes. Over 57,000 property transactions were recorded in the first half of 2023 alone, a 44 percent rise from the previous year, emphasising a pronounced preference for ready homes.

The second quarter of 2023 also saw off-plan sales peak at $9.3 billion, despite a slight fall in September due to seasonal adjustments. Nevertheless, the surge in ready home sales accentuates the enduring vigour of the market. An astounding $2.23 billion worth of property was transacted in a single week in late October, attesting to the persistent demand.

The mid-market segment leads the demand in Dubai’s property landscape, as buyers seek a harmonious blend of luxury, community amenities, and affordability. This segment is becoming increasingly popular for its competitively priced residential units.

The rise of Dubai as a home for new residents and small business owners seeking value continues to bolster the mid-market sector, which is expected to maintain its upward trajectory through 2024.

Population growth, with an increase of 100,000 residents from the previous year, and continued investment from a diverse international cohort, point towards a sustainable demand for property. Forecasts for 2024 suggest a 14-15 percent growth in property values, indicating a robust and continuing trend.

Dubai's real estate sector showcases the city's dynamic growth and potential. A surge in plot sales reflects developer confidence, with numerous projects slated for 2024. The ongoing construction boom across the city is a tangible sign of the sector's health and optimism for the future. The sector's upward trajectory over the past two years offers a promising glimpse into the next, with widespread positivity about the sustainable momentum of growth in the coming years.