Dubai’s residential real estate market witnessed record-breaking growth in the first quarter of 2024, driven by a substantial surge in off-plan property sales, according to a new report by Savills.
Off-plan sales skyrocketed 73 percent quarter-on-quarter, accounting for 63 percent of total transactions in Q1, the property consultancy said in its Dubai Residential Market report for the first quarter of 2024. The jump came amid strong demand for high-quality properties from reputable developers coupled with attractive incentives offered during project launches.
“Dubai’s residential real estate market has continued an upward trajectory fueled by factors such as population growth, economic resilience, business confidence, and a thriving tourism and hospitality sector,” said Andrew Cummings, head of residential agency at Savills Middle East.
Overall transaction volumes climbed 35 percent from the previous quarter to an all-time high of 35,100 units in Q1. Apartments dominated, making up 83 percent of all deals, with villas accounting for the remainder.
Market gravitates to southeast Dubai micro-markets
Market activity was concentrated in southeast Dubai submarkets like Jumeirah Village Circle, Arjan, Dubai Hills Estate, Meydan One, and Damac Hills 2. Demand also remained robust in areas such as Business Bay, Downtown Dubai, Dubai Marina, and Jumeirah Lake Towers.
“In the first quarter of 2024, approximately 5,000 units were introduced to the market,” said Alec James Smith, Savills’ director of sales and leasing for the Middle East.
“Notable launches included Mercedes-Benz Places, Claydon house by Ellington, Franck Muller Aeternitas Tower in Dubai Marina, and Vida Dubai Hills by Emaar, with apartments making up 84 percent of these launches, signaling the confidence in this market segment going ahead.”
Dubai property transactions exceeded $2.7 million
While affordable options attracted many buyers, luxury properties remained in demand. Over 1,000 transactions exceeded 10 million dirhams ($2.7 million) in Q1, up 41 percent from a year earlier. Apartment deals worth at least that much jumped 51 percent quarter-on-quarter.
The Palm Jumeirah, Business Bay, and Bluewaters Island led upscale locations for apartment prices per square foot, while Dubai Hills, Palm Deira, District One, and Tilal Al Ghaf saw the highest rates for villas and townhouses.
Dubai rents rose 7% on average
Rental rates increased by an average of 7 percent across the emirate, with apartments up 8 percent and villas rising 6 percent quarter-on-quarter.
A revised rental index may push some area rents up 10 percent to 20 percent in the period ahead, potentially prompting tenants to consider relocating, downsizing, or buying a home, Cummings said.
“Dubai’s residential real estate market is expected to perform well in the near future, given the upward trend in both rentals and capital value appreciation,” he said.
