Despite the rather difficult worldwide economic climate, the Dubai real estate market dynamically develops and demonstrates significant investment potential. Recognized as a place of attraction for migrants and tourists from all over the world, Dubai captivates foreigners with its premium quality of life, a diversity of supreme residential facilities, and the perspectives for ambitious business projects. The Dubai property market makes an equal appeal to both investors and migrants intending to buy apartments for constant residence. Its development is in many respects facilitated by significant consumer demand, a stable economy, and loyal visa legislation.
Comprehensive Review of the Dubai Housing Market
In accordance with Property Finder, from January to November 2024, the Dubai property market demonstrated sustainable advancement. To date, the market’s prevailing tendencies include constant price growth, an increase in the sales volume, and a relatively high ROI.
The Dubai Real Estate Prices
As current statistics show, the common value of residential property sold in the first quarter of 2024 reached 20 million dirhams, which is 40% more than in the period from January to March 2023. It is evidence of two tendencies: increases in price per square meter and a rising demand for elite real estate. The Dubai average house price varies depending on the object’s position, its area, and amenities. In the sought-after city’s communities, it amounts to $5,500.
Property Sales in Dubai
Caused partly by the influx of migrants and investors, over the last 5 years, the sales volume has been growing. For instance, while in the first half of 2023, about 46,000 residential units were sold, in the same time frame of 2024, this figure exceeded 62,000. This tendency indicates the stable advancement of the housing market, active investors’ presence, and an extremely low probability of the emergence of the real estate bubble in Dubai. The major buyers are migrants, foreign investors, and UAE residents.
Renting in Dubai
As DLD data show, the demand for rental accommodation in the metropolis remains quite high. In the first six months of 2024, the volume of deals amounted to 300,000. It is 6% more than in the time frame from January to June of the previous year. The Dubai rental market covers diverse residential units, from tiny studios to large villas. The rental dwellings’ cost is steadily rising. The majority of tenants are expats.
Primary Tendencies of Dubai Property Market
Large Consumer Demand
The experts state the escalating consumer demand. There are a range of reasons for this trend.
- Rents in Dubai are experiencing record growth; therefore, many tenants decide that it would be more profitable to purchase housing in installments than make monthly payments for rental accommodation.
- Dubai attracts thousands of expats and migrants, who want to acquire their own dwelling in the metropolis.
- In the coveted Dubai neighborhoods, an average ROI exceeds the global average ROI and can reach 10%.
- The number of deals increases annually. As per the forecasts about Dubai’s property market, the demand for residences in the metropolis is not anticipated to decrease.
Off-Plan Purchasing
Real estate under construction annually attracts numerous investors. About 60% of residences bought in 2024 are off-plan. The purchase of housing until it is put into operation has plenty of advantages.
- Until commissioning, real estate, on average, costs 20–25% less than the same ready-for-occupancy property.
- Housing under construction can yield a significant income. They may be rented out or resold after commissioning at a higher price.
- Off-plan real estate purchasing is among the predominant trends in Dubai, since most developers offer exclusive property options when they are in the building process.
Eco-Friendly Projects
The authorities’ primary focus is ecology and the emergence of “green” real estate. The declared government’s aim is to reach zero carbon dioxide emissions by the year 2050. Therefore, most contemporary residential projects are developed with consideration of the rules of power efficiency and environmental sustainability. Investors can expect the emergence of eco-friendly Dubai real estate in the near future. The residential complexes will include parks and relaxing zones, and the property will be designed with the incorporation of power-efficient technologies.
The Usage of Innovative Technologies
For all its originality and Arabic flavor, Dubai is an embodiment of the latest western technologies. The property industry is no exception. Developing companies are incessantly integrating modern programs and systems into their residential complexes to attract potential purchasers. The elite-class dwellings are always outfitted with diverse smart algorithms and advanced safety systems. The usage of groundbreaking technologies in the property sphere is manifested in the ability to pay for the dwelling with cryptocurrency and seek a suitable residence with artificial intelligence. According to Dubai real estate forecasts, robotic process automation will be utilized to the fullest extent in the property industry.
The Elite Sector’s Boom
Another trend in Dubai property is the growing emergence of elite-class offers from leading developing companies. As statistics demonstrate, more than 30% of the common value of sold property options in 2023 was received from the sale of units worth over 10 million dollars. The premium property industry is developing at a rapid pace. As per Savills’ report, Dubai and Sydney top the ranking of the appealing premium real estate markets. The elite flats and houses are situated in coveted locations and well outfitted.
Growing Interest in Villas
Among Dubai real estate market trends are migration to suburbs and the formation of a cult of owning a private house. In 2023, the most sought-after property options were apartments. About 80% of the properties purchased in 2023 were flats in multistory buildings. However, gradually, the sale of villas is gaining momentum. Most demanded villas are situated in green neighborhoods with well-advanced infrastructure, pools, and parking zones. Private houses are the supreme facilities for people striving for a secluded, relaxed lifestyle.
Major Dubai Property Forecasts
- In the opinion of Metropolitan Capital Real Estate experts, in 2025, the market will demonstrate smooth and even expansion without rapid and sudden leaps. The quantity and common value of transactions will remain approximately the same.
- As per the Dubai property price forecast, the cost is anticipated to increase. The price growth will be accompanied by a combination of aspects, including the influx of foreign investment, the transition of tenants to the category of homeowners, and a raise in the quantity of ready-to-move property. Rents will also increase.
- Specialists assume that in the next two years, the construction of about 182,000 projects in the field of residential, business, and commercial property will be successfully completed in Dubai. In accordance with forecasts, the city’s population will continue to annually expand by at least 3%.
- The Dubai real estate industry will steadily develop and attract a plethora of potential buyers. Despite rising prices, interest in the city’s property among foreign investors will not wane.
Our agency’s team consists of experts who are aware of all the peculiarities of the Dubai real estate sector. If you intend to acquire a dwelling in this metropolis, apply to our managers and describe to them your dream housing and the primary purpose of its purchasing. Our aim is to find a residential facility from the leading developing company on the most favorable terms. We’ll inform you about Dubai real estate market forecasts and prepare an individual selection of housing options meeting your requirements. From the search for an object to the conclusion of the transaction, we’ll provide a complex of services to make your buying process reliable and comfortable.
Dubai’s real estate market growth is a constant feature of its economy. Thanks to the diversity of dwelling options, investors with any budget can select a suitable facility, and the primary goal of our experts is to help them in their search.
Оставить комментарий