Apartments fuel growth in Dubai’s real estate market in Q1 2024
The demand for apartment living is highly expected to increase in Dubai in 2024. It has resulted in a huge increase in Dubai’s real estate market, even in the first quarter of 2024. In this article, we will explore the highlights and trends that shaped the market and opened up opportunities for investors.
Q2 2024 market overview
The real estate market in Dubai is continuously growing due to the high demand for apartment living. The investors are showing huge interest in the sales and rental sectors in Dubai. According to an expert report, the transactions increased by 19.3 percent compared to the same period in 2023.
The reason behind the growth of the real estate market is the 33,346 transactions in Q1 2024. This growth is mostly seen in the total sales value in the Dubia real estate market. The total sales value increased by 23.9 percent in the first quarter of 2024, reaching a total of AED85 billion.
Surging sales transactions
The huge sales transaction in Dubai’s real estate market is attracting investors. The big parties are showing interest in buying profitable properties, especially apartments. Some of the important factors behind this increase are the attractiveness of Dubai’s apartheid, profitable financial options, and increasing demand for living space.
Increase in sales and purchases
Due to the rising demand for apartment living, both the selling and purchase rates have increased. This increase highlights the strong performance of Dubai’s real estate market and indicates a positive output in the coming months. So, if you are searching for profitable investment opportunities, choose Dubai’s real estate market.
Apartments are driving market growth
When it comes to different types of properties, apartments remain the preferred choice of investors. In the first quarter of 2024, apartment sales accounted for 61% of all sales in Dubai. The growing popularity of apartment living can be attributed to its affordability and convenience.
These factors make the apartments a favorite choice of both investors and users. The strong demand for apartments played a significant role in driving the overall growth of Dubai’s real estate market during the first quarter of 2024.
Villas and townhouse trends
While the investors showed huge interest in the first quarter of 2024, the demand for villas and townhouses also increased in Q1 2024. The market for villas and townhouses was 18 percent of the total sales value, and the total transactions were 5,989.
The reason behind the popularity of villas and townhouses in Dubai is their layout, privacy, and facilities. In the first quarter of 2024, villas and townhouses were very popular with families and individuals.
Record-high property prices
Due to the increasing interest of investors and end users, the prices of apartments will increase in 2024. During the first quarter of 2024, the property value in Dubai reached around AED1,325 per square foot. This marked a 7.4 percent increase from the previous peak in September 2014. Some of the most common factors behind this increase are listed below:
- There is a strong demand for properties in Dubai, especially apartments.
- Limited supply and availability in certain areas.
- The wealth and high demand of the real estate market in Dubai.
- Advancement and increment in the residential facilities in Dubai.
Off-plan dominance continues
In the first quarter of 2024, we have also seen huge off-plan sales in Dubai’s real estate market. The off-plan sales were 57 percent of total sales in Dubai, with a total value of AED 42.3 billion. Off-plan properties remain popular among buyers due to their potential for higher returns on investment. This trend indicates the huge interest of buyers in Dubai’s real estate market. Due to these reasons, the big analysts predict that the future of Dubia’s real estate market is bright.
British nationals lead buyers
In the first quarter of 2024, British nationals dominate the buyers. There were around 23 percent of British buyers in Dubai’s real estate market. They were particularly attracted to modern villas and townhouses, which offer a luxurious lifestyle and modern amenities.
The increasing number of British investors showcases the increasing demand for Dubai in the international market. The facilities and investment opportunities in Dubai make it desirable for international investors.
Financing vs cash buyers
In the first quarter of 2024, the rate of financing options was higher than that of cash buyers. The rate of financing options was 53 percent of all total sales in the Dubai real estate market. This indicates that buyers are taking advantage of favorable financing options to purchase properties in Dubai.
The rate of cash buyers was 47 percent, which was very close to the financing options. These analytics showcase the diverse range of buyers in Dubai’s real estate market. However, we saw a huge increase in investors from both local and international regions.
Demand for affordable properties
The price of 80% of properties sold in Dubai was less than AED3 million. This indicates a strong demand for affordable residential properties, such as apartments, in Dubai. The investors are showing interest in the affordable, profitable, and off-plan properties. The availability of affordable properties is essential for maintaining a healthy and inclusive real estate market in Dubai.
Rising demand for rentals
The demand for rental properties experienced a 26 percent increase on a monthly basis and a 126 percent increase on a yearly basis. The reason behind this increase is the growing population in Dubai and good investment opportunities. So, whether you want to invest in a small apartment or a big home, 2024 is giving you the best opportunities.
Notable sales and rental transactions
In the first quarter of 2024, there were notable sales and rental transactions in Dubai. These transactions highlight the luxury and exclusivity of Dubai’s real estate market. The increasing demand for apartments in Dubai is attracting investors from all over the world.
Conclusion
In conclusion, the first quarter of 2024 was a period of significant growth in apartment sales. The expert analysts have seen a huge increase in sales and transactions in the Dubai real estate market. The high prices of apartments and other properties showcase the strength of the Dubai real estate market. The investors are showing interest because the future of the real estate market in Dubai looks very bright.