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Dubai’s Real Estate Booms: 35,000 New Units by Year-End

Posted by main.admin on May 22, 2024
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According to a JLL report, the sustained strength of Dubai’s residential market will result in the delivery of over 35,000 new units by the end of the year. Investor demand is being driven by creative product offers, alluring financing alternatives, and recent modifications to the golden visa criteria.

According to JLL’s UAE Real Estate Market Overview for Q1 2024, around 10,000 units were delivered in Dubai and 1,600 in Abu Dhabi during the first quarter, indicating robust growth in the residential sector in the UAE as developers move their attention to secondary locales.

The Dubai market had a great start to the year, with almost 10,000 units finished in the first three months, bringing the total inventory to 729,000 units. An extra twenty-five thousand units are expected to be delivered in Dubai over the next nine months. These will mostly be flats situated in well-known neighbourhoods including Business Bay, MBR City, Jumeirah Village, and Dubai Land. 1,600 units were delivered consistently to Abu Dhabi, and another 6,000 units were anticipated by year’s end, according to the study.

According to Faraz Ahmed, research director at JLL Mena, the amount of residential sales transactions in Dubai increased by 20% over the same period last year, while in Abu Dhabi, the volume increased by 17%, with more apartment sales than villa and townhouse sales. “Yet, rising land prices and building expenses are forcing developers to refocus their efforts on secondary locations in addition to concentrating on properties priced between Dh2 million and Dh3 million, which allows buyers to satisfy the requirements for eligibility for the Golden Visa.”

Dubai Real Estate

Sale prices and rental rates increased by 21% annually in the Dubai market. Particularly, apartment rents had a significant yearly increase of 22%, outpacing the growth rate of villa rentals at 14%. The demand for villas stayed strong, as seen by the selling prices’ noteworthy year-over-year increase of 22%. In Abu Dhabi, over the same time, rental rates jumped by an average of 4.0 per cent, while sales prices increased by an average of 7.0 per cent. Like in Dubai, rental increases for apartments in Abu Dhabi were 5.0% greater than for villas. On the other hand, the value of villas sold in Abu Dhabi increased by 9.0 year over year.

The hotel industry is growing due to the flourishing tourist industry, and Dubai has had tremendous development. In the first quarter, 2,000 new keys were added, bringing the total number of keys in stock to 155,000. In Q1 2024, there were around 2,000 new hotel openings, including 5-star establishments in places like Business Bay, Za’abeel, and Port Saeed. This increased the total to almost 155,000 keys. Throughout the year, an additional 5,000 keys—a combination of 4- and 5-star properties—are anticipated to be added to the emirate. On the other hand, according to the JLL research, Abu Dhabi’s hotel supply stayed mostly steady at 32,500 keys, with an expected 500 more keys added during the year.

The real estate market in Dubai is booming

Dubai Real Estate

The real estate market in Dubai is seeing a remarkable surge, attracting investors and purchasers from across the globe. Due to its thriving economy and picturesque skyline, Dubai has become a popular destination for real estate investors. Here are some reasons why the real estate market in Dubai rising.

Navigating the Seller’s Market: Maximize Returns on Property Sale

Important Site

Dubai is a major centre for international commerce, tourism, and business due to its strategic location as a gateway between the East and the West.

Tax-Free Profits

For investors looking to optimize their earnings, Dubai is a desirable destination due to its exemption from both capital gains and personal taxes.

World Class Infrastructure

Modern infrastructure, such as highways, airports, and public transportation, has increased Dubai’s allure.

The impact of Expo 2020

Expo 2020 has accelerated infrastructure construction and raised demand in Dubai’s real estate around the world.

Modular Property Laws

International investors can now participate in the market thanks to recent changes in property rules that permit foreigners to acquire freehold real estate in specific locations.

Elevated Rental Yields

Dubai attracts real estate investors because it offers better rental yields than other big cities.

Governing Bodies’ Projects

Dubai Real Estate

Long-term investor visas are one of the most important government measures to support the real estate industry and the economy.

Increasing Tourism Sector

The growing tourism industry in Dubai fuels demand for lodging and real estate.

Available Opportunities for Investment

There are many different investment options available in Dubai’s real estate market, ranging from luxurious villas to reasonably priced flats.

Stability and Safety

Dubai is renowned for both its safety and political stability. The desirability of the real estate market is greatly enhanced by these variables. 

Benefits and Drawbacks of Purchasing Real Estate in Dubai’s Exploding Prices

Dubai Real Estate

Benefits

Here are some benefits regarding the purchase of real estate in Dubai.

High Potential Returns: In addition to possible capital growth, investors may benefit from high rental returns.

Diverse Portfolio: To satisfy different investing appetites, options range from residential to commercial properties.

Safe Investment Environment: Investors are provided with security by the UAE’s strong legal system and stable political environment.

Beyond the Hype: Dubai Real Estate – Boom or Bubble? Experts Weigh In

Drawbacks

Here are some drawbacks when purchasing real estate in Dubai.

Market Volatility: Dubai’s real estate market is subject to changes in the status of the world economy, just like any other.

Regulatory Shifts: Modifications to real estate rules and regulations may affect investment results.

Dubai Real Estate

Risks of Oversupply: Rapid growth raises the possibility of oversupply in some markets, which might have an impact on rental prices and property values. 

In summary

The Dubai real estate market is experiencing a boom driven by its strategic position, tax benefits, first-rate infrastructure, and a wide range of investment options. The market has some dangers, including market volatility and regulatory changes, even while it provides safe investing opportunities and substantial potential profits. As with any venture, success depends on doing your research and having a thorough grasp of the local market. Global investors are drawn to Dubai’s real estate market because it offers a vibrant and lucrative investment environment.

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