Asteco’s Q2 2024 Dubai Real Estate Report provides a comprehensive look at the current state and future outlook of the sector, revealing key trends and projections that highlight the ongoing dynamism of Dubai’s property market.

A Surge in Supply

According to Asteco, Dubai's real estate market is poised to welcome an additional 25,000 new homes by the end of 2024. This anticipated influx underscores the sector's continued expansion, driven by Dubai's strong economy and its allure as a destination for expatriates.

Market Fundamentals and Trends

Despite a slight deceleration in the delivery of new residential units in Q2 2024, with around 6,750 units completed, the pace of new project launches remains vigorous. Developments range from single low-rise buildings to ambitious master-planned communities, reflecting a broad spectrum of housing options.

The second half of the year is expected to see a significant addition to the market, although some new projects might be delayed until 2025. This wave of new supply is expected to continue shaping Dubai’s real estate landscape, further diversifying the available housing options.

Rental Market Dynamics

Rental rates for apartments and villas have experienced quarterly increases of 3% and 2% respectively. However, annual rental growth has moderated, with apartments up by 8% and villas by 4%. This growth is largely influenced by the revised RERA rental index, which has allowed landlords to impose higher rent increases upon lease renewals.

Office and Sales Market Performance

The office rental market, particularly for Grade A spaces, remains robust due to strong demand and constrained supply. Rental pressures are likely to continue until new office spaces are introduced or market conditions shift.

In the sales market, Dubai has sustained strength, with a 2% increase in average sales prices in Q2 2024. Notably, areas like Jumeirah Village and Business Bay have seen above-average price growth, fueled by heightened demand and the influx of new, high-quality developments.

The off-plan property market remains particularly buoyant, with both local and international investors showing significant interest. Enhanced financing options, including up to 10% more funding for projects with at least 50% construction progress, are stimulating this market segment and broadening accessibility for potential buyers.

Outlook

Dubai’s real estate market continues to demonstrate resilience and appeal, driven by a combination of economic stability, high-quality new developments, and attractive investment opportunities. As we move toward the end of the year, the sector's robust fundamentals and ongoing development activity promise to sustain its growth trajectory.

For those considering investment or looking to enter the market, Dubai remains a compelling choice with its dynamic property landscape and favorable economic environment.

With 25,000 new homes on the horizon, Dubai’s real estate market offers promising opportunities. This growth, coupled with strong demand and favorable financing, makes now an ideal time to invest or list your property. Stay ahead and capitalize on Dubai’s expanding market.