Dubai’s Real Estate Sector Demonstrates Strong Growth and Resilience in Recent Months

Dubai experienced a substantial 61.4% annual increase in off-plan contract registrations, totaling investments worth AED 59.9 billion

ValuStrat’s comprehensive Q2 2024 review of Dubai’s real estate market reveals significant dynamics. The report, from a globally recognized consultancy specializing in multi-sector advisory services, analyzes residential, commercial, and hospitality sectors, highlighting robust growth and market activity.

Haider Tuaima, Director and Head of Real Estate Research, provides insights into Dubai’s real estate landscape. He notes impressive resilience and growth in recent months despite challenges like severe flooding from record rainfall in April. The ValuStrat Price Index for Residential Capital Values rose by 6.4% quarterly and 28.2% annually, reaching 178.2 points. Prime properties saw prices increase by 29.9% annually to 184.3 points, setting new records. Premium apartments and villas also showed substantial gains.

Palm Jumeirah notably surpassed 2014 price peaks for apartments, reflecting strong market performance. Off-plan registrations increased significantly, though the average ticket size declined. Ready home transactions slightly decreased quarterly but remained higher year-on-year. Office unit valuations surged by 31.7% annually and 9.4% quarterly, marking a decade-high increase. Office sales and rents remained stable after previous highs.

Tuaima concludes that Dubai’s real estate market continues to thrive with strong demand, indicating an upward cycle in valuations and rents. However, stakeholders must monitor evolving market dynamics closely amidst fluctuating transaction volumes.