Dubai Real Estate Market Snapshot: Q3 2024
Dubai's real estate market continues to thrive, with property sales and prices reaching new heights in the third quarter of 2024. Strong demand, coupled with limited supply, has driven prices up across various segments. Investors are flocking to Dubai, attracted by the city's vibrant economy, thriving tourism sector, and attractive investment opportunities.
Key highlights include:
Strong Sales: Over 48,000 property transactions were recorded, totaling AED 120 billion (USD $32.7 billion).
Rising Prices: Prices increased across various segments, with the most significant hikes in affordable apartments.
Investor Interest: Affordable property buyers and investors have shown heightened interest in areas such as International City, Dubai South, DAMAC Hills 2 and Dubailand, while luxury & waterfront properties attracted high-net-worth individuals.
Best Areas for ROI: Dubai Investments Park, Discovery Gardens, and Liwan offered the highest returns for affordable apartments.
Rental Market: Rental prices surged, with Deira and International City becoming popular choices for affordable rentals.
Dubai’s Q3 Market Overview
Strong Sales: Dubai's real estate market saw a surge in Q3 2024, with over 48,000 property sales totaling AED 120 billion ($32.7 billion).
Rising Prices: Property prices across various segments continued to increase, driven by strong demand and limited supply.
Investor Interest: Affordable and mid-range properties remained popular among investors, while luxury properties attracted high-net-worth individuals.
With developers closely aligning supply with market demands, the sector is expected to continue this momentum, with no significant risk of oversupply for the next four to five years.
Best Areas for ROI
Affordable Apartments: Dubai Investments Park (DIP), Discovery Gardens, and Liwan offered the highest returns (9-11%).
Mid-Tier Apartments: Dubai Sports City, Dubai Silicon Oasis, and Town Square provided attractive yields (over 8.6%).
Luxury Apartments: Al Sufouh, DAMAC Hills, and World Trade Centre yielded 7-9%.
Affordable Villas: DAMAC Hills 2, International City, and Serena offered returns above 6%.
Mid-Tier Villas: Jumeirah Village Circle, Dubai Sports City, and Jumeirah Village Triangle provided ROIs of 6-9%.
Luxury Villas: Al Barari and Tilal Al Ghaf offered returns exceeding 6%.
Rental Market Trends
Rising Rents: Rental prices increased across all segments, with the most significant hikes in affordable apartments (up to 28%).
Popular Rental Areas: Deira and International City for affordable apartments, Jumeirah Village Circle and Bur Dubai for mid-tier apartments, and Dubai Marina and Business Bay for luxury apartments.
Villa Rentals: DAMAC Hills 2 and Mirdif for affordable villas, JVC and Al Furjan for mid-tier villas, and Dubai Hills Estate and Al Barsha for luxury villas.
Overall Outlook
Positive Growth: The Dubai property market is expected to continue its upward trajectory due to strong demand, economic growth, and a booming tourism sector.
Limited Supply: The market is anticipated to remain balanced for the next 4-5 years, with no significant risk of oversupply.
Price Appreciation: Property prices are likely to continue rising, supported by robust demand for both luxury and mid-tier developments.
Dubai's real estate market remains a very strong investment option, offering attractive returns and steady growth. The price per sq ft. will never be lower and the action takers who can move swiftly are being rewarded. Investors should take the time to understand and consider various areas before deciding on any investments. These insights and data were provided by Bayut.com.
