Dubai Real Estate Boom: Expert Insights on Buying, Selling, and Investing in 2024
The development and completion of new housing units have significantly increased, contributing to the present boom in Dubai’s real estate market. Expert opinions on whether to purchase, sell, or hold real estate in this strong and promising market are provided here.
At now, the real estate industry in Dubai is experiencing unprecedented growth, presenting a favourable prospect for investors and property owners to profit from. In the first quarter of this year, 105 properties in Dubai that cost more than $10 million were sold, up 19% from the same period last year, according to Knight Frank. With a total value of $1.73 billion, up 6% from Q1 2023, luxury house sales in Q1 cemented Dubai’s position as the world’s busiest market for upscale real estate. Furthermore, 13,000 residences are expected to be delivered to Dubai.
Off-plan home purchases saw a spike in Q1 2024 in Dubai’s real estate market, with monthly sales volume climbing steadily. In January, there were 5,881 off-plan homes sold; in March, there were 7,601 units sold. Furthermore, there was an increase in ready property sales, which went from 3,961 units in January to 4,421 units in March.
When compared to places like Hong Kong and Singapore, Dubai is now one of the most reasonably priced luxury travel destinations worldwide, according to Morgan Owen, Managing Director of ANAROCK Group. Following the outbreak, affluent people—including businesspeople, elite members of the banking and financial services industries, and even cryptocurrency millionaires—have been more interested in Dubai’s residential market.
How UAE ‘FATF grey list’ boost is driving investments and affordable property is set to boom?
However, analysts expect that despite the massive flood of new apartments, property values will continue to climb owing to high demand from both domestic and international purchasers, driving up both rental and ownership costs. According to the Property Monitor Dynamic Price Index, real estate prices did rise in February. They were 0.83% higher than in January, reaching an all-time high of $352.31 (AED 1,294) per square foot, nearly 5% more than the city’s previous market peak in September 2014.
So, everyone’s main concern is whether or not 2024 is a favourable year to purchase or sell real estate. Specialists have offered their opinions and observations on the subject.
Make money in the market
The Head of Research and Consultancy at Cushman & Wakefield Core, Prathyusha Gurrapu, claims that there have been significant rises in both rentals and sale prices in Dubai, with rents growing more quickly than sales prices.
“We anticipate that renewed rents will be approaching new rents as a result of the RERA rent calculator’s recalibration last month”. Following these trends, Gurrapu says that” now would be a good time for tenants or end users who have the money for a down payment and intend to stay in Dubai for the long run to buy because the high rents will probably offset the mortgage costs and prevent the ongoing rental increases that are anticipated shortly.
However, because rental yields are at record highs, this would be a good moment for investors who currently possess assets in the market for rental yields to stay onto them. Having said that, Gurrapu continues, “We are seeing sellers looking to exit the market to capitalize on the current high sales prices, depending on when they purchased.”
A Methodical Approach
For more than four years, Dubai’s real estate market has consistently expanded and experienced price increases, and there are no indicators that this trend will end. Experts predict further price appreciation this year, however the rate of growth may vary. Alec James Smith, Director of Sales and Leasing at Savills, states that “factors like the introduction of Golden and Green visas, tax benefits, a business-friendly environment, abundant job opportunities, lifestyle amenities, and overall better quality of life have contributed to a steady increase in Dubai’s population.”
The population increased by over 100,000 in 2023, whereas over 40,000 new residential units were delivered in the same time frame the previous year, according to the Dubai Statistics Centre (DSC). Early estimates for 2024 indicate that population growth and new house deliveries will be roughly the same, with between 35,000 and 50,000 units anticipated to be delivered.
Apartments fuel growth in Dubai’s real estate market in Q1 2024
Dubai: A robust marketplace
In 2024, the Dubai real estate market is exhibiting strength and durability after two years of excellent results. A favourable climate for purchasing and selling real estate has been produced by strategic initiatives, legislative changes, economic diversification programs, and infrastructural development. Rewards such as the Golden Visa Program have contributed to Dubai’s reputation as a desirable international real estate destination.
The choice to purchase or sell real estate in 2024 will rely on personal tastes and circumstances. Real estate selections are very individualized and impacted by a variety of elements, including individual lifestyle preferences, market trends, and financial objectives. Before making any judgments, prospective buyers and sellers should carry out in-depth investigation and analysis. Buyers should bear in mind that Dubai still has a far cheaper price per square foot than many other comparable locations, says Cherif Sleiman, Chief Revenue Officer of Property Finder.
Conclusion
Selecting the right location is still critical. Villanova, Damac Hills, JBR, Marina, and Palm Jumeirah are all cited by Roe and Bannan as the best locations to invest because of their near access to amenities, potential for property value increase, and educational options.The key is to make well-informed decisions based on the state of the market, the quality of the property, and your financial readiness. Despite these flexible changes, Dubai’s vibrant real estate market still offers a wide range of possibilities for investors. Remember that engaging with a reliable real estate agent may provide important market information and guidance, ensuring that your investment choices align with your desired lifestyle and financial goals. It’s noteworthy to note that buying real estate has become simpler in the current financial climate, especially for first-time buyers, thanks to lower mortgage rates. This transition has resulted in a spike in purchase activity due to favorable mortgage offers and rising rental prices.
