Dubai's real estate market performed very well during the second quarter of 2024, the data released by real estate agency, ValuStrat, showed.
In the residential market, capital values (prices) increased by 6.4% quarterly and 28.2% annually in the second quarter. Prime properties saw the highest gains (29.9% YoY and 6.5% QoQ). Rental values increased by 2.7% quarterly and 10.8% annually.
Villa rentals rose by 1.1% quarterly and 3.5% annually to an average yearly rent of Dh408,200. Apartment rents grew by 16.9% annually and 3.8% quarterly, reaching an average of Dh89,100. Residential occupancy in Dubai was estimated at 87.7% during the first half of 2024.
When it comes to supply, new apartment completions were significant. Total estimated completions as of the first half of this year stood at 6,939 apartments and 2,145 villas, equivalent to 20% of preliminary estimates for the whole of 2024. The estimated number of new units to enter the market this year stands at 38,174 homes.
Notable apartment completions during the quarter included Creek Views 1 & 2, with 634 and 587 apartments respectively, as well as Grand Blue Tower with 649 houses and Azizi Amber with 109 properties.
Notable villa completions included Murroj Al Furjan West with 161 units and Silver Springs 3 in Damac Hills with 258 villas.
A total of 91,718 apartments and 28,385 villas are currently under construction, with promised handovers by 2028. Of these projects, 10% are located in Jumeirah Village Circle, with another 10% located in Business Bay, followed by Jumeirah Lake Towers with 5%.
Commenting on the report, Haider Tuaima, Director & Head of Real Estate Research at ValuStart, said: "Despite severe flooding caused by record rainfalls in April, the quick and effective response from developers and authorities helped to control the damage, ensuring that property valuations remained robust in the subsequent months."
Off-plan sales transactions grew 61.4% YoY. Ready property sales were down slightly QoQ but increased 4.8% YoY. Q2 saw 11,508 ready secondary home transactions, down 1.7% QoQ, equivalent to investments worth Dh29.3 billion.
In the office market segment, capital values surged by 9.4% over the previous quarter and 31.7% YoY, reflecting high demand and limited supply. Sales transactions increased by 9.5% QoQ, but only 1.9% YoY. Rents remained stable after record highs in Q1, but still showed a 31.2% YoY increase.
The retail and industrial markets also showed positive performance, with industrial capital values increasing slightly.
The upward trend in valuations and rents across various segments shows that the market cycle is in its upswing, says Tuaima. "The upswing demonstrates resilience and growth, making Dubai a key player in the global property market."
For a detailed perspective on the property market, visit: Dubai - VPI Residential Capital Values - July 2024
