The real estate market of Dubai looks quite promising in 2024, as stated in Asteco’s report. New housing comprises 7300 apartments and 2,750 villas in the first quarter of the current year.
This is believed to ensure next year’s results and an increased production expected to hit 30,000 units by the end of the year 2024.
Apart from that, rental rates in Dubai Residential Market have stayed the same with significant growth overall and vary across different family communities.
Annual growth has slowed to single digits, with villas at 6% and apartments at 10%, but has an increase suggested. The number of new leasing contracts declined by 4% compared to the previous quarter and last year.
However, there’s a positive sign with renewals increasing by 5% quarter-on-quarter and 12% year-on-year, suggesting tenants accept higher rental hikes. Sales prices also remained stable throughout Q1 with some variation by community.
Annual growth sits at 6% for apartments and 8% for villas. Buyer preferences are shifting towards established communities like Jumeirah Village Circle , Business Bay , Dubai Marina , and Downtown Dubai , likely due to higher rental demand and shorter vacancy periods. The off-plan market remains strong in terms of both transaction value and volume.
