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Unprecedented Upswing Predicted in Dubai’s Real Estate Sector

Recognized as the 10th Most Powerful Country in the world, the United Arab Emirates has solidified its position as a prominent player on the global stage, extending its impact beyond regional boundaries. Now, Dubai real estate market is projected to witness an exceptional boom in 2024.

The Dubai real estate market continues to exhibit resilience, showing no signs of a downturn. Sales volumes in the first three months of the year have witnessed a significant increase of 19.3% compared to Q1 of 2023, according to statistics released by Allsopp & Allsopp.

This upward trajectory has continued, with sales between January and March exceeding the record-breaking levels set in Q4 2023 maintaining a robust momentum as asserted by the property specialists.

The analysis has also revealed that 30% of all properties sold were priced under AED1 million ($272,000), while a substantial 80% of sales fell below the AED3 million ($817,000) threshold.

This surge is poised to lead to the largest real estate boom in the past decade!

Two of the main catalysts to this boom are the tourism sector and the removal of the UAE from the FATF “grey list”.

As Dubai’s tourism sector flourishes, the city’s real estate market has experienced a transformative surge with the demand for housing options for both tourists and industry professionals expected to remain robust, driving the real estate market to even greater heights.

The removal of the UAE from the FATF “grey list” has bolstered investor confidence, solidifying its position as an attractive and secure investment destination for international entities and investors which is also fuelling investments in affordable housing.

Allsopp & Allsopp’s formal declaration indicated a correlation between the growing number of finance buyers compared to cash buyers and the elevation of interest in properties characterized by affordability.

There has been a significant increase in the frequency of new project launches, with an average of one launch every 17 hours, a substantial improvement from the previous average of 36 hours per launch.

Off-plan property preferences continue to dominate the market, evidenced by the increased proportion of sales attributed to such developments. In order to meet this growing demand, Allsopp & Allsopp have noted a significant increase in the frequency of new project launches, with an average of one launch every 17 hours, a substantial improvement from the previous average of 36 hours per launch.

Market Data Highlights for February 2024

  • Increased Transactions: In February, the real estate market witnessed a notable surge in transactions, with over 12,000 recorded, indicating a strong market momentum.
  • Property Value Appreciation: Property prices have demonstrated resilience, exhibiting a 1.1% growth in the first two months of 2024. Predictions suggest a robust 6.6% appreciation by year-end.
  • Off-Plan Dominance: Off-plan properties remain a lucrative investment option, accounting for 60% of transactions, highlighting the optimism among buyers.
  • Apartment Preference: Apartments continue to dominate the market, with approximately 82% of transactions involving apartment units.
  • International Buyer Composition: British clients are a significant contingent among international buyers, along with individuals from India, Egypt, France, and Lebanon, underscoring the appeal of Dubai’s real estate market to a diverse clientele.

Emerging Lettings Trends in February 2024:

  • Rent prices have witnessed a substantial 16% year-on-year increase.
  • Landlords are introducing more adaptable payment terms to accommodate tenants.
  • The predominant transaction method involves multiple payment checks, supplemented by 33% using a single check.
  • The average annual rental price stands at 188,000 dirhams.
  • Property viewings have experienced a remarkable 51% increase over the previous year.

The Chairman of Allsopp & Allsopp, Lewis Allsopp, Esq., asserted that “The Dubai real estate market witnessed extraordinary performance during Q1, resulting in an unparalleled 26.6% increase in sales transaction volumes for Allsopp & Allsopp compared to the previous quarter.”

Given its recent recognition as the world’s most visited city, it is no wonder that over 25,700 expatriates have made Dubai their home this quarter. This population growth is expected to drive the market’s continued upward trend.

“We stand by our prediction: Dubai is on the brink of its biggest boom in 10 years.”

Compiled using inputs from :

Allsop & Allsop
Arabian Business