According to a recent report by “Harbor Real Estate,” the Dubai real estate market is approaching the half-trillion dirham dirhams by the end of this year, supported by the historical data and figures recorded since the beginning of 2024.
The report relied on Dubai real estate market data since the beginning of 2024, with an average exceeding 42 billion dirhams monthly. It is on track to reach the half-trillion target by the end of the year, with the total sales value reaching 421 billion dirhams.
The total value of real estate transactions, including sales, mortgages, and grants, is also moving strongly towards 700 billion dirhams. This aligns with the recently adopted strategic plan for Dubai real estate market for 2033.
Dubai real estate market has performed well since the beginning of 2024. Off-plan properties captured the largest share, accounting for 60 percent of sales value, equivalent to 224 billion dirhams, marking a 30 percent increase in value. Ready properties constituted 40 percent, valued at 150 billion dirhams.
The percentage of new investors in Dubai jumped by 63 percent during the first half of the year, while investments increased by 35 percent. Luxury properties accounted for 17 percent of the total assets. It takes to transition from a tenant to an investor/owner is approximately 4.4 years.
Additionally, the rental market in the emirate recorded more than 450,000 rental contracts worth 45 billion dirhams during the first half of 2024.
During the first nine months of 2024, the villa and townhouse sector, which includes 28 areas, saw an average price change increase of 25% in most areas compared to the same period in 2023. This ranged from a minimum increase of 5.6% in the Meydan area to a maximum of 45% in the Jumeirah Park area.
As for the apartment market, which includes 42 areas, most areas recorded growth with an average increase of 21% according to the same comparison. This ranged from a minimum of 0.62% in the Culture Village area to a maximum of 35% in the Remraam area.
During the first nine months of 2024, the rental market in Dubai exhibited varied performance in the price index for apartments and residential villas compared to the same period in 2023. The market experienced declines and stability in limited areas, while the majority of areas saw increases. These areas offer diverse products and provide residents with multiple options, ranging from low-cost and mid-range to luxury properties.
The rental market for residential apartments in Dubai showed price fluctuations, ranging from a decrease of 6% specifically for two-bedroom units in Downtown Dubai to a notable increase of 30% for studio units in the Al Nahda area.
Regarding rental residential villas, the price trends during the first half of this year showed a mix of decreases, stability, and increases. The Al Barsha area saw the largest decline, with a 15% decrease for four-bedroom units. In contrast, three-bedroom villas in Dubai Land experienced general stability. On the other hand, six-bedroom villas in DAMAC Hills recorded the highest increase, at 27%.
Additionally, the office space market in Dubai demonstrated strong performance during the first nine months of 2024, with consistently rising demand, particularly for category (A) spaces.
Rental prices for office spaces increased at double-digit rates, reaching up to 20% in some areas, driven by growing demand from regional and international companies.
Additionally, around 37,000 square meters of new office space were added, with more expected in the fourth quarter. Office prices rose by 34%, while retail space prices increased by 15%.
