Dubai property market in 2024: overview
by Teodora Bondoc on December 4, 2024
https://www.palmmonorail.com/blog/best-sunset-spots-in-palm-jumeirah-dubai-experience-the-magic-hour/
Dubai’s property market was defined by resilience this year, defying global economic challenges and attracting more investors with its competitive rental yields, high ROI, and investor-friendly policies. We’re approaching the end of the year so why don’t we dive deeper into the market trends, figures, and insights shaping the past 12 months?
As 2024 draws to a close, Dubai’s property market continues its remarkable growth trajectory, building on the solid backbone of 2023, which saw a year-on-year growth of approximately 44% and transactions exceeding an outstanding AED 300 billion (EUR 77 billion). This year, the momentum persisted, driven by heightened demand across various property segments and the sustained influx of high-net-worth individuals (HNWIs).
Dubai offers some of the highest rental yields on a global level, with averages ranging 6-9%. Prime areas such as Jumeirah Village Circle (JVC) and Dubai Marina boast to deliver as much as 10-12% in yields.
If we’re referring to the luxury segment, apartments and villas continued to stay quite high, with rental rates in neighborhoods like Palm Jumeirah increasing by 13% in 2023.
Challenges and opportunities in 2024
However, the year that is about to end didn’t come without its specific challenges. Albeit the high yields, the ever-growing property prices have made it difficult for mid-income buyers to enter the market. The average price for a villa in Dubai now exceeds AED 5 million, up from AED 3.5 million in 2021. In terms of regulations, stricter requirements for property developers and off-plan sales have been introduced, aiming to curb speculation. Lastly, during summer months, there is a lower rental demand due to high temperatures, therefore short-term rental incomes face a decline.
Off-plan sales accounted for over 55% of transactions in 2023 and remain popular due to attractive payment plans and lower entry costs. Short-Term Rentals: With rental demand surging during major events, short-term rentals provide yields as high as 15% in key tourist areas like Downtown Dubai. Commercial Properties: Office spaces in Dubai saw a 24% price increase in 2023, driven by the influx of multinational companies.
Dubai’s population is projected to reach 3.9 million by 2024, up from 3.7 million in 2023, driving housing demand. Golden Visa Program: The UAE’s Golden Visa initiative has attracted over 150,000 investors and skilled professionals, boosting long-term property ownership. With a target of 25 million visitors in 2024, Dubai’s tourism sector is a significant contributor to short-term rental demand.
Emerging Neighborhoods to Watch
- Dubai South: Anticipated growth of 35% in property values due to proximity to Al Maktoum International Airport and Expo City Dubai.
- MBR City: Strong demand for luxury villas and apartments, with an expected price increase of 12% in 2024.
- Tilal Al Ghaf: Sustainable living projects are gaining traction, with a 25% increase in buyer interest year-over-year.
