According to a recent report by one of the leading real estate brokerages in the emirate, this is just part of a more significant surge in the market.
According to the report, approximately 48,000 new units are predicted to be handed over during 2024, a significant increase from more than 17,000 units during H1 of the year. This increase in new deliveries showcases Dubai's real estate market as it bounces back into significant growth.
Market Imbalance And Future Projections
Even as new units flood the market, they remain outbalanced, with demand exceeding supply. According to the experts, the gap may soon be bridged. The number of handovers is targeted to achieve more than 65,000 units in 2025 and further grow to about 70,000 units by 2026.
Resilience And Market Maturity
Walid Al Zarooni, CEO of W Capital, expresses faith in the market's resilience, stating, "Dubai's realty sector presented excellent unity in 2024 with record-breaking sales and meeting delivery expectations in the first half of the year." He emphasizes that the market has matured to a level whereby continuous growth propels the breaking of new records.
Growth Drivers
He added that not only strong investor confidence and developers launching large, mega projects had helped maintain the continued prosperity and expansion of Dubai's real estate market, but also popularity in off-plan properties continued unabated. According to him, these are some of the main reasons that have been maintaining the momentum of the market, with investors' preference for such properties due to the high returns they offer, often reaching up to 10 per cent.
Why Dubai Continues to Attract as the Prime Real Estate Destination?
The present boom in Dubai's real estate continues to attract many foreign investors due to the security of investments and residency options available from the government. Al Zarooni pointed out the lure of Dubai towards new residents, investors, and luxury seekers, where it offers better returns than most other markets in the world.
Continuous Demand and Ahead Lying Potential
Al Zarooni is still optimistic about the performance of the Dubai real estate market. He says the strong market growth recorded in H1 2024 will continue during the year's second half, driven by further growth. This is because demand is expected to remain ahead, with Dubai being a destination for luxury real estate.
This W Capital Report outlines the maturity and resilience that Dubai's real estate sector has achieved, setting the stage for further growth and attaining new milestones in the not-too-distant future.
Residential Price Growth
In addition to this, the market has also seen remarkable growth in residential real estate prices. Recently, DHG Properties said that the growth rate of Dubai residential real estate prices increased from 20.30% in February 2024 to 20.70% in March, further underlining the market's strength.
The Dubai Real Estate Market is making an outstanding recovery and reflects an excellent outlook for 2024 and beyond.
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