The first five months of 2024 have witnessed huge property transactions in posh locations in Dubai. The city is still a popular destination for the rich people around the world to own a house here. There are a lot of activities going on in both the buying and launching of new and luxurious properties for investing purposes.
The new launches of luxurious properties like modern apartments and luxurious villas are being sold out in a few days and there are long lines for some new properties built by popular developers.
Till now there are more than 74,214 transactions in the property market whose price is expected to be around AED 259 billion. This is huge for a city like Dubai which is continuously developing several types of properties to fulfil the demands. But one to see is that these numbers are slightly lower than the previous year of 2023 which saw more sales of AED 634 billion. This has pushed some builders to work on new projects to grab more buyers.
In 2024 the market saw a rise in the demand for the properties that are available in off-plan. People were interested in off-plan because it was costing less than fully launched projects and payment plans for these types of properties are also very attractive which means that they can be paid for easily. There was a 25% increase in the sales of luxurious types of off-plan properties in January alone. Some top brokers working in the property market of Dubai said that a large number of transactions were for off-plan properties for approx AED 15 billion for around 6000 sales.
Properties that are ready also showed an upward growth. Some reports showed that in January 2024 there were more than 5000 transactions for ready properties which is an 8% increase. The amount of these transactions touched AED 21 billion and it is a 31% rise. This shows that there is still a huge demand for the ready-to-move properties in Dubai.
According to the professionals, apartments are still the top choices for the buyers where the Dubai market saw around 58% of the purchase queries and the 42% of queries were for buying villas or townhouses. The same thing can be seen for rental requirements also but the percentage difference is huge where 80% of people are looking for apartments in rent and the other 20% are looking to live in rent at villas or townhouses. Damac Riverside Community is a good example of a new luxurious project for villas and townhouses.
Some locations in Dubai still remain very much attractive to both buyers and tenants. Popular neighbourhoods like Dubai Marina, Downtown Dubai, Jumeirah Village Circle, Business Bay, and Sobha Hartland 2 are normally chosen for buying apartments. For buying villas and townhouses, locations like Dubai Hills Estate, Palm Jumeirah, Damac Hills, The Oasis, and Emaar The Valley are liked by the buyers. Binghatti One is coming to Business Bay with apartments, villas, and penthouses which shows the demand for this location.
There are some reasons that help to the growth of the property market of Dubai like this city has a good position in the Middle East which connects it to Asia, Africa, and Europe, the rule made by the government to push real estate, and providing world-class services for foreigners. Other programs like the Golden Visa on buying properties for residency are also attracting a lot of investors from other countries.
The re-look of the Real Estate Regulatory Authority (RERA) rent calculator has also played a big role. These small changes aim to mix old rents with new increased rents, making it a good time for tenants who have been living in rent for a long time to consider buying property. High rental yields and significant price increases have made property investment in Dubai very profitable for investors.
Looking at the current situation of Dubai real estate, it will continue to grow and some executives working in Dubai Housing are also expecting the price rise of the luxurious properties because of the continuous demand for houses launched by popular builders like Binghatti, Damac, Emaar, and Sobha. Some studies show that around 35,000 to 50,000 housing properties will be ready for possession in the year 2024 which is huge and will also help to meet the needs of the increasing population in Dubai.
For the past two years, the real estate of Dubai has seen a fantastic growth where rich people from other countries are buying luxurious properties in posh neighbourhoods. The modern facilities and amenities that come with the housing project also play a big role in attracting more buyers every year after the pandemic. The reason for such demand for properties in Dubai is because of programs like Golden Visa which provides residency for foreigners and the opportunity to make money through rents and reselling of the properties at high prices.
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