Today's Edition
MAYS IBRAHIM (ABU DHABI)
The Dubai real estate market sustained its remarkable growth during the first half of 2024, defying earlier forecasts of a slowdown, according to Bayut's Sales Market Report Dubai for H1 2024. It revealed an upward trend in property prices for both villas and apartments across luxury, mid-tier and affordable segments.
The first half of 2024 saw a total of 43,075 sales transactions for ready properties both residential and commercial in Dubai, collectively valued at Dh122.9 billion, according to the report, which compares property sales prices in Dubai for H1 2024, against those recorded in H2 2023.
Commenting on the findings, Haider Ali Khan, CEO of Bayut and Head of Dubizzle Group MENA said: "Amidst the global economic slowdown and rising interest rates, we have noticed a pattern of investors worldwide turning to wealth-preserving assets. Contrary to earlier predictions of a slowdown, Dubai's real estate sector has emerged as a standout choice in this climate, with prices and consumer interest continuing to rise even after a 24-month period of continuous growth".
Affordable Segment
In the affordable property segment, prices have surged up to 17% during the first half of the year. Buyers looking for affordable apartments showed a preference for International City, Dubai South and Dubai Production City.
Although International City saw an overall price increase of 7.86%, Dubai South and Dubai Production City experienced price declines of 13.5% and 17.4%, respectively. Price-per-square-foot in these districts rose between 1% and 5%.
Mid-tier Properties
Mid-tier properties experienced price increases ranging from 5% to 16%. Jumeirah Village Circle (JVC) remained the top choice for investors, with considerable interest also directed towards Jumeirah Lake Towers and Dubai Silicon Oasis.
In these areas, the price-per-square-foot for apartments rose by 6.54% in JVC, 5.74% in Jumeirah Lake Towers, and 11.2% in Dubai Silicon Oasis. The average transaction values for properties in these locations reported significant appreciations of 12% to 40%.
Luxury Market
The luxury property market also saw substantial growth, with average sales prices-per-square-foot rising by up to 15%. High-end areas such as Dubai Marina and Arabian Ranches remained highly attractive to investors and homebuyers seeking luxury properties, with price appreciations of between 3% and 7% reported for apartments.
Villas
Investors seeking affordable villas showed a preference for areas like DAMAC Hills 2, The Valley by Emaar, and Dubailand. Prices-per-square-foot for villas in these areas increased by 6% to 17%, with The Valley by Emaar experiencing the most significant growth.
"The exponential growth in residential rents across the emirate has led a large number of expats to consider buying property, consequentially inflating the demand for affordable houses for sale," the report stated.
In the mid-tier segment, buyers and investors gravitated towards villas in Jumeirah Village Circle, Al Furjan, and The Springs, where prices-per-square-foot surged between 8% and 16%. Jumeirah Village Circle saw the highest price hikes during H1 2024. Transaction price averages for these villas also showed increases of 4% to 23%, according to Dubai Land Department (DLD) data.
Arabian Ranches, Dubai Hills Estate, and DAMAC Hills emerged as preferred areas for luxury buy-to-let villas. Villas in these locations recorded price-per-square-foot increases of 9% to 15%, with Arabian Ranches experiencing the most noticeable rise due to growing interest in larger family-oriented residences. DLD data corroborates these trends, with transaction sale prices showing increases of 7% to 24%.
