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According to experts, with the market set on continuing its upward trajectory with increased sales figures and values of property, plus the fast absorption of newly launched inventory, it is poised for a strong performance.
Experts believe that the further growth of UAE Real Estate Market will be based on extremely high demand for all their spectra, a record volume of new property supply, and strong integration of advanced technologies. It is supposed that local and international investors will keep on playing a considerable role in this case by supporting the market growth with resilience and strategic importance within the region.
Market Performance And Emerging Trends
The Dubai real estate market is on course to move into another successful year in 2024, with sales figures already such that they have reached a notable height. Property transactions in July this year were AED 49.6 billion ($13.5 billion), up by 31.63% as compared to the corresponding month last year. This surge is partially due to increased demand for luxury properties, mainly concentrated in high-demand areas such as Palm Jumeirah .
Transactions in the first half of 2024 were a little over 43,000 transactions, valued at about AED 122.9 billion, reflecting a year-on-year increase of 30 percent. Partly driven by the rapid sale of newly launched units, 80 percent of all properties introduced since 2022 are already sold.
Increased Supply of Property and Market Consequences
Property supply is expected to surge in the next two years, reaching approximately 41,000 units in 2025 and 42,000 units in 2026. This is an 80% increase compared with an estimated 27,000 units in 2024 alone. While increased growth presents more opportunities for buyers and investors, the flip side of growth is the possibility of oversupply, which may stabilize prices or see minor declines in selected market segments.
However, the market's resilience, supported by strong investor confidence and strategic urban development, is expected to absorb much of this new inventory.
Investment Strategies and Key Opportunities
2024 - 2025 is a critical window where investors can optimize returns through strategic timing of investments. Areas such as Palm Jumeirah and Downtown Dubai continue to attract high-net-worth buyers, while mid and affordable segments are picking up, especially in areas such as Dubai Silicon Oasis and Jumeirah Village Circle that offer promising yields.
Technological Advancements and Increased Proptech
The Dubai real estate market is changing tremendously in the modern age of digital economy and technological advancement. Actually, the selling and marketing of properties use more artificial intelligence and digital platforms. Features like virtual tours, 3D renders, and even AI-powered price valuation are gradually becoming a minimum standard across most listings, making the process more transparent, increasing access, and facilitating efficiency in property purchase.
In fact, it's expected that starting from the end of 2023 and at least until 2024 and beyond, the use of proptech solutions will continue to change the way developers and investors alike interact with the market. This is part of a wider trend happening globally in the development and investment technology for real estate.
Challenges and Future Market Dynamics
While optimistic, the Dubai property market has certain challenges: oversupply and possible downward pressure on rental prices. Premium land availability is getting exhausted and hence pushing developers to go for more sustainable growth strategies beyond 2026. The strategic shift will help the market stabilize long-term, so Dubai remains a destination for real estate investment
