As the dynamic real estate landscape of Dubai continues to evolve, Sterling Capital Real Estate presents an in-depth analysis of Dubai property market trends in the first half of 2024. A comprehensive review of search trends and official data highlights a robust and unwavering growth trajectory in Dubai’s real estate market. With total sales transaction volumes increasing by 12.2% compared to H2 2023, the data showcases the city’s resilience and appeal to both local and international investors.
Market Overview
Gergana, a leading broker at Sterling Capital, notes, “Analysis of search trends in H1 2024 has provided a comprehensive overview of Dubai’s real estate market during the first half of the year. Moreover, official data has indicated unwavering market growth, with total sales transaction volume increasing by 12.2% compared to H2 2023.”
This growth is fueled by a steady rise in property prices, a diverse range of rental properties, and heightened confidence among buyers and renters. People-centric urban developments, investor-friendly policies, and a tax-free environment are key drivers attracting consistent investment inflow, further solidifying Dubai’s position as a premier global real estate market.
Key Growth Drivers
Dubai property market trends show remarkable growth attributed to several factors, including enhanced investor facilitation, transparent transactions, and the introduction of new off-plan projects. Dubai’s attractiveness is amplified by new resident visas, welcoming over 25,000 new residents in Q1 2024 alone, significantly boosting property demand.
Major infrastructure projects like the new airport in Dubai South, new metro stations, and the Etihad Railway have spurred buyer interest in adjacent areas. The availability of high-quality amenities and investor convenience has also positively impacted the market, leading to increased searches for both luxury and affordable properties across popular areas.
Market Highlights
Luxury Properties
- Top Luxury Villa Community: Dubai Hills Estate remains the top choice for luxury villas, with an average sales price of AED 15.99M.
- Top Luxury Apartment Area: Dubai Marina leads in search trends for both buying and renting luxury apartments, with an average sales price of AED 2.54M and an annual rent of AED 153K.
- High Investment Returns: Arabian Ranches 3 and Dubai Creek Harbour recorded the highest ROI for luxury villas (6.42%) and luxury apartments (6.49%), respectively.
Affordable Properties
- Top Affordable Villa Community: DAMAC Hills 2 (Akoya by DAMAC) stands out with an average asking price of AED 1.93M.
- Top Affordable Apartment Community: Jumeirah Village Circle (JVC) and International City are the most favored destinations for affordable apartments, with Deira and International City leading in affordable rental searches.
- High Investment Returns: Dubai Silicon Oasis (DSO) provided the highest ROI for affordable apartments (9.19%), while DAMAC Hills 2 (Akoya by DAMAC) led for affordable villas (7.25%).
Sales Trends
Apartments:
- Luxury: Dubai Marina, Business Bay, and Downtown Dubai are the top communities for buying luxury apartments, with average asking prices of AED 2.54M, AED 2.05M, and AED 3.8M respectively. Dubai Creek Harbour saw the highest price jump at 7.96%.
- Affordable: JVC, International City, and Dubai Silicon Oasis lead in popularity. JVC apartments saw a price increase of 7.5% for studios, 8.76% for 1-bed, and 3.27% for 2-bed units.
Villas:
- Luxury: Dubai Hills Estate, Palm Jumeirah, and DAMAC Hills top the list, with per-square-foot price increases of 4.95%, 6.93%, and 9.26% respectively.
- Affordable: DAMAC Hills 2 (Akoya by DAMAC), Dubailand, and JVC are the most searched areas. DAMAC Hills 2 showed an average price tag of AED 1.93M with a 5.71% per-square-foot price increase.
Rental Trends
Apartments for Rent:
- Luxury: Dubai Marina, Business Bay, and Downtown Dubai remain top choices, with slight rental price increases.
- Affordable: Deira, International City, Al Nahda, JVC, and Bur Dubai lead in affordable rental searches. Deira saw an average rent of AED 62K, while International City’s rent jumped by 13.89%.
Villas for Rent:
- Luxury: Al Barsha, Dubai Hills Estate, and Jumeirah are favored, with notable rent increases.
- Affordable: Dubai South, Dubailand, and JVC are popular for affordable rental villas, showing significant rent hikes.
Sterling Capital Real Estate’s detailed analysis of Dubai property market trends for H1 2024 provides crucial insights for investors, buyers, and renters, highlighting the vast potential of Dubai’s thriving property market. As the city continues to attract global attention, its real estate sector stands strong, ready to meet the growing demand and offer lucrative investment opportunities.
