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Dubai’s residential segment thrives with 24.7 percent annual growth in Q1 2024: Report

Dubai’s residential segment thrives with 24.7 percent annual growth in Q1 2024: Report

The office sector soars with 29.9 percent annual increase during the quarter

The Dubai real estate market experienced during the first quarter of 2024 significant expansion in both its residential and commercial sectors, as evidenced by the most recent data from the Valustrat Price Index (VPI)

In the residential segment, the VPI for capital values demonstrated a substantial increase of 6.4 percent on a quarterly basis and 24.7 percent annually, reaching 167.5 points, compared to the base of 100 points in Q1 2021.

This growth was primarily driven by a 5.7 percent quarterly and 20.1 percent annual surge in apartment valuations, particularly in mid-affordable communities.

Villas remained resilient and reached 211 points, marking a 29.6 percent annual increase and achieving the highest values in ten years for prime villas.

Additionally, the office sector witnessed remarkable growth, with office unit valuations surging by 29.9 percent annually, reflecting sustained demand for high-quality office spaces.

The VPI for office capital values reached a record high of 194.2 points, indicating a robust market.

Prominent business districts such as DIFC, Jumeirah Lake Towers, and Business Bay experienced significant annual growth, further solidifying Dubai’s position as a regional business hub.

In the industrial market, the VPI for Dubai Industrial capital values reached 135 points, demonstrating a 15 percent annual increase and a 3.5 percent quarterly increase in logistical warehouses.

This growth underscores the resilience and adaptability of Dubai’s industrial sector, which continues to attract investments and expand its presence.

Furthermore, strong rental growth was observed across all segments, further emphasizing the robust performance of the real estate market.

Residential asking rents

Residential asking rents experienced an annual surge of 11.7 percent, with villa rentals increasing by 6.1 percent annually and apartment rents growing by 16.4 percent on a yearly basis.

Moreover, the latest data from the ValuStrat Price Index highlights the strength and dynamism of Dubai’s real estate market.

The report emphasizes that with consistent growth in the residential, office, and industrial sectors, Dubai remains an attractive destination for investors and businesses, positioning itself as a premier choice for real estate investment in the region.

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Source Properties Real Estate consultants are RERA (Real Estate Regulatory Agency) registered.

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