Asteco’s Q2 2024 Dubai Real Estate Report provides valuable insights into the current state of Dubai’s property market and its future outlook. Here are the key takeaways:
1. Surge in Supply
- Dubai’s real estate market is set to welcome 25,000 new homes by the end of 2024, signaling continued market growth. This increase is driven by the city’s economic strength and its appeal to expatriates.
2. Market Fundamentals and Trends
- The delivery of new residential units slightly slowed in Q2 2024, with 6,750 units completed. However, the launch of new projects remains strong, encompassing a wide variety of housing options from low-rise buildings to large master-planned communities.
- The second half of 2024 is expected to see significant additions to the housing supply, although some projects may be delayed until 2025.
3. Rental Market Dynamics
- Rental rates for apartments and villas saw quarterly increases of 3% and 2%, respectively. Year-on-year growth has moderated with apartments rising 8% and villas 4%. This is due in part to changes in the RERA rental index, which has allowed landlords to implement higher rent increases upon lease renewals.
4. Office and Sales Market Performance
- The office rental market remains strong, especially for Grade A spaces, driven by high demand and limited supply. Rental pressures are expected to persist until more office space comes to market.
- In the sales market, there was a 2% increase in average sales prices in Q2 2024. Areas like Jumeirah Village and Business Bay have experienced above-average price growth, largely due to the influx of new, high-quality developments.
- The off-plan property market continues to perform well, attracting both local and international investors. New financing options, including additional funding for projects with at least 50% construction completion, are contributing to this segment’s growth.
5. Outlook
- Dubai’s real estate market remains resilient and attractive, underpinned by economic stability, high-quality developments, and investment opportunities. The market is expected to continue growing through the end of the year, offering promising opportunities for investors.
- With 25,000 new homes on the horizon and strong demand, this is a favorable time to invest in or list property in Dubai.
Asteco’s report suggests that Dubai’s property market is poised for continued expansion, driven by both local and international interest, making it an ideal place for real estate investment.
