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Dubai Property Market Surges 21% Price Increase and 35,310 Transactions in Q2

Posted by main.admin on July 2, 2024
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Dubai’s real estate market experienced significant growth in Q2 2024, recording over 35,300 transactions, according to a comprehensive study by Primo Capital Experts. The UAE real estate sector showed remarkable activity and substantial increases in both transaction volumes and values.

Record Transaction Volumes

The second quarter of 2024 saw a record number of transactions, with a total of 35,310—a 20.5% increase year-on-year. This surge was driven by a 23.9% rise in off-plan property transactions and a 15.2% increase in secondary market transactions.

Residential Real Estate Growth

The average value of residential properties in Dubai increased by 20.7% year-on-year, with prices for flats rising by 20.4% and villas by 22.1%. This trend underscores the ongoing confidence among buyers and the strong demand in the market.

In Abu Dhabi, the average price of a villa increased by 2.3%, while apartment prices rose by 4.3%, indicating steady growth in the emirate’s residential sector.

Commercial and Industrial Real Estate

Dubai’s commercial real estate market also performed exceptionally well, with average rents increasing by 22.2% annually and 17.1% quarterly. This rise was fueled by the expanding requirements of companies and businesses in the UAE’s thriving economy.

The industrial and logistics sector saw annual rental rates increase by 14.3% due to higher demand for warehouses and storage facilities.

Hospitality and Retail Real Estate

The UAE’s hospitality industry demonstrated resilience, with a 0.9 percentage point annual increase in average occupancy rates. Retail rental rates in Abu Dhabi and Dubai also saw significant increases, rising by 14.7% and 10.5% respectively, reflecting strong commercial activity and a supply-demand imbalance.

Market Outlook

Primo Capital experts predict continued growth in the UAE real estate market, driven by a strong economy, substantial ROI, higher capital returns, and favorable government policies.

Mohammad Zeaiter, Senior Property Advisor at Primo Capital, highlighted a shift among leading developers towards customer-centric construction, allowing buyers more freedom to customize their properties. Zeaiter noted that the UAE’s robust real estate market continues to attract international investors, outperforming major metropolitan cities like New York, London, Singapore, and Hong Kong.

Reference: Arabian Business

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