Dubai’s Real Estate Market Sees New Projects Every 18 Hours in 2024
Property Monitor, a leading real estate research platform, has revealed an impressive surge in new developments within Dubai’s real estate sector. In 2024, the market is witnessing the launch of a new project approximately every 18 hours, reflecting an average of more than one new development daily.
According to the latest market report from March 2024, nearly 10,000 new residential units were introduced for sale within the month, marking a strong start to the year. By the end of the first quarter, a total of 34,000 units across 120 different projects were launched, maintaining a consistent pace of new developments every 18 hours.
This rapid pace of construction shows no signs of slowing down, as Dubai continues to attract both investors and potential homeowners. With the announcement of three significant developments and the highly anticipated “Ghaf Gardens” project by Majid Al Futtaim, the choices for buyers are expanding, further contributing to the thriving real estate landscape.
However, this influx of new projects presents challenges for developers. The market is becoming increasingly competitive, with heightened buyer expectations and more careful scrutiny of investment decisions. Larger, established developers are better positioned, thanks to their ability to offer competitive pricing and flexibility, while niche developers focusing on luxury or specialized segments are also carving out a strong presence in the market.
For newcomers to Dubai’s property market, the challenge lies in differentiating themselves from well-established players. In response to growing competition, some developers may need to resort to traditional marketing strategies such as offering promotional gifts, flexible post-delivery payment plans, or covering various property-related fees to attract potential buyers.
On the pricing front, property values in Dubai saw a notable surge in March, with prices climbing by 2.37%, marking the largest monthly increase since May 2023. Current property prices now stand at AED 1,325 per square foot, representing a 7.4% increase from the previous peak in September 2014, signaling robust demand and market confidence.
This price growth is partially attributed to the growing gap between the pricing of existing homes and new developments, highlighting a shift in market dynamics since late 2023.
Luxury properties continue to capture an increasing share of the market. In March, properties priced above AED 10 million made up 2.7% of all sales, while homes in the AED 5 million to AED 10 million range accounted for 6.3%. The AED 3 million to AED 5 million segment also saw an uptick, representing 13.8% of all market transactions during the same period, showcasing the rising demand for high-end real estate in Dubai.
As the market for premium properties continues to expand, Dubai’s real estate sector remains an attractive destination for investors seeking long-term growth potential in a thriving and competitive environment.
