Dubai Property Market Soars In Early 2024: Best Investment Opportunity

The real estate market in Dubai began the new year on an upswing, with sale prices and rental rates rising sharply during the first quarter of 2024. As per the recent CBRE Middle East data, the values and rents of the properties have increased by above 20% compared to the same period last year.

The largest rise in sales prices was observed in villas, with their average value being more than 22% higher than the previous year. Apartments lagged behind a bit, but prices of sales there went up 20.4% on average. This further added to the strong momentum the Dubai real estate market had enjoyed since the beginning of the year.

In addition, rents were rising at the same speed, as they grew by 21. 2% rise city-wide. The second time the villas were more profitable, the rental rates increased 14. 5% for the house and 22% for the rest. 1% for flats. The booming market is obviously bringing profits to investors and landlords.

The transaction volumes also touched the highest level of the year, with total sales of more than 35,000 during the first quarter, which was a 20.5% increase from 2021. Sales for off-plan increased by 23.9% of the market went to the primary market, while the secondary market was up 15.2%. It indicates that there is constant buying activity across new as well as resale property segments.

Equally encouraging is that rental registrations were also on the rise, growing 5.8% year-over-year as more residents moved to Dubai. This influx of newcomers will help underpin future property price appreciation through increased competition for limited housing supply.

As of March 2024, the average apartment price reached AED 1,486 per square foot. For villas, the average price hit AED 1,776 per square foot. While sales prices remain slightly below 2014 highs, they rapidly reach peak levels.

Going forward, analysts expect the Dubai Property Boom to continue, though perhaps at a slightly more moderate pace, with price increases averaging high-single to low-double digits. Rents, too, should rise but at a slower clip than we saw in early 2024.

All in all, the Q1 data confirms that Dubai Real Estate maintains strong bullish momentum as demand simply outweighs the new supply coming online. Both investors and homebuyers looking for capital growth or a stable rental income stream continue to favour this market.