Welcome to our market update report on real estate sales and rental performance figures for the first half of 2024!
This report highlights the dynamic trends shaping one of the world's most vibrant real estate marketplaces.
Table of content:
Economic landscape
Dubai’s economic activity registered a 3.2% GDP growth in the first quarter of 2024 compared to the same period last year. Property sector achieved a growth rate of 3.7% during the first quarter of 2024, contributing 7.3% to the emirate's GDP showcasing remarkable demand and opportunities.
As per S&P Global, Dubai PMI - a composite indicator providing an overview of operating conditions in the non-oil private sector economy - continued to signal a moderating growth trend across the non-oil privates sector economy with the headline index at 54.3 in June 2024.
On the tourism side we've seen 8.12 Mil total international visitors in the city from Jan-May 2024 compared to 7.39 Mil on same time last year.
The overall population in Dubai as of last year was 3.6 Mil people, with Emirati nationals counting for only 7.99% while the rest of 92% being expats. The population is expected to increase by 5.8 million people by the year 2040 which will drive the need for new schools and hundreds of thousands of new homes.
Overall market performance
Real estate transactions values hit 346 Bil AED equivalent to 94.2 Bil USD in H1 2024
233.38 billion AED (63.59 billion USD) recorded in sales value, reflecting a remarkable 30% increase compared to same period 2023. This substantial performance stems from the rising interest from global investors and by the attractive real estate investment return.
Off-plan property sales made up to 60% of the total sales transaction volume, increasing by 44% compared to same period last year driven by high demand and more projects launch across the emirate.
In the secondary market for ready properties, we've seen a peak in transacted values around mid-March and an overall volume of 40% of total sales transactions for the first half period. As compared to last year there was a 15% increase in volume.
Top areas for sales transactions volume so far this year are:
Jumeirah Village Circle
Business Bay
Dubai Hills
Dubai Marina
Meydan One
The rental property market experienced steady growth during the first six months.
Overall, rents transactions
Source: DXB Interact
70,833 AED was the average rental value in the city for the first six months across apartments, villas and commercial properties
16.7% increase in median rent value YoY
10.6% increase in the number of rents transactions compared to previous year to 59,100
Breakdown of rental prices evolution by main areas compared to the same time last year, across apartments, villas and commercial properties:
Dubai Marina - 15% increase
Downtown Dubai - 14% increase
Business Bay - 15% increase
Palm Jumeirah - 16% increase
Jumeirah Bay Island - decrease by -38%
In 2024, tenants who are renewing their contracts from previous year, will still likely pay a lower rent in comparison to new rental leases. Real Estate industry experts are also optimistic that the updated RERA index calculator implemented effectively from March 1, could contribute to lower rent prices in the long run.
Why Dubai ?
The real estate market in Dubai offers a myriad of enticing benefits that make it an attractive investment opportunity:
Freehold property ownership and Zero property tax
Zero personal income tax, capital gains tax, or withholding tax
100% foreign business ownership
100% repatriation of capital investment and total profit earned
Corporate structures available for property ownership, wealth, tax benefits or estate planning solutions
Golden long-term Visa for property investments
Investor-friendly policies providing foreign investment protection
One of the world’s top tourist centers
Final Thoughts
Whether you're an investor, homeowner, or industry professional, our insights provide a valuable snapshot of the current landscape, uncovering key patterns and opportunities in Dubai's ever-evolving real estate sector.
The growth trajectory showed in this real estate market performance report, since the start of the year provide an ideal opportunity for investors to capitalize on the market's persistent progress. Dubai market offers a unique blend of financial advantages, growth potential, and lifestyle benefits for investors making it an ideal choice for establishing new ventures in the city. However, as with any investment, thorough research and understanding of market dynamics through different scenarios are essential.
Source: Dubai Land Department, DXB Interact
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