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Notoriously the Dubai real estate market is ‘quiet’ over the summer months. Or so the myth goes.
In July 2024, Dubai reached its peak performance of the year reaching 49.6bn worth of sales. A staggering 31.63% increase on 2023’s performance in the same month. What's more intriguing, is the 4.4bn transacted in July 2020 is now at a level whereby that amount wouldn’t raise a solitary eyebrow if it was transacted in a single day, such the level of the market at the moment.
We’ve seen average rental prices increase by 21.1% from Jan 1st 2024 until May 31st 2024. Investors are seeing rising ROI’s and rental yields, but experiencing in tandem - a positive capital appreciation simultaneously which breathes confidence and positivity across the markets of international property investment, into the Dubai market.
The off-plan market is still buoyant with sold out projects from Emaar, in particular - the new Palace Residences in Dubai Hills Estate amounting some astonishing 915 apartments sold at launch. With further launches from Emaar at Emaar Oasis, Meraas’ development at The Acres, and even seeing Abu Dhabi’s Aldar making moves into the Dubai market - the big hitters synonymous with Dubai, are all thriving. Any concerns for investors looking at the market can be alleviated judging from the 60% of total sales recorded in the month of July, were sales in the off-plan market.
Villa and Townhouse communities continue to drive demand with areas such as Dubai South, close to the soon to be ‘worlds largest airport’ at DWC - Al Maktoum, being the top selling off-plan Villa community in July, again through Emaar's Greenway project.
We’ve seen the off-plan resale market continue to thrive, with motivated buyers missing out at launch still showing keen interests in those communities and willing to pay premiums commanded by sellers who secured investments pre launch, and at launch.
Areas such as Tilal Al Ghaf by Majid Al Futtaim are reaching, in some cases close to 200% appreciation on the original developer price. With price per square foot in the community up from 1,200AED up to an average now of 1,800AED. For a community early in its maturity with only one full sub community (Elan) and the first phase of another (Harmony) handed over, there is still plenty of room for further appreciation as Aura, Harmony, the recreational facilities such as beach club & the crystal lagoon begin to reach completion.
The prime and super prime markets are the interesting markets for me personally to commentate. We’ve seen an astounding 47% transactional increase on 2023 in the luxury sector. The UAE is on course to be the largest beneficiary of millionaires, and with that, comes the undeniable desire for showcase mansions, penthouses and villas, envious to their peers.
Branded residences are poised for another phenomenal year across the UAE, with more renowned brands such as Baccarat and Banyan Tree entering the ever in demand Downtown and Business Bay areas. Couple that with the infamous Ushuaia hotel and residences out of Spain's beautiful balearic island of Ibiza opening in Ras Al Khaimah, and the beach club/party venue with the same name coming in Q4 of 2024 in Dubai Marina.
The direction of Dubai is growth as we edge towards his Royal Highnesses 2040 vision and urban plan. The Infrastructure is in place to accommodate the population rise; with the Dubai metro expansion, the Etihad railway and upgrades to all major highways easing traffic and commutes. Not to mention the enhancement and expansion of the world’s largest shopping centre - The Dubai Mall and the Dubai Creek Tower skyscraper that will eclipse the previous tallest tower in the world - The Burj Khalifa.
We’re in a unique and ever thriving market of continued expansion never before seen in this amazing city. New master communities will come, the secondary market will continue to thrive, there really is no other city like Dubai.
Strap in - we’re in for another rollercoaster of twelve months in the best real estate market on the planet.
This article was published on August 14, 2024, in Property Weekly by Gulf News and was authored by Mitch Hayles, Managing Director at LuxuryProperty.com.
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