Villa prices saw particularly strong growth, with capital values increasing by 33.4 per cent year-on-year, a new ValuStrat real estate report for Q2 2024 finds
Dubai’s real estate market demonstrated robust performance in the second quarter of 2024, with significant increases across residential, office, and retail sectors, according to a new ValuStrat real estate report for Q2 2024.
Villa prices saw particularly strong growth, with capital values increasing by 33.4 per cent year-on-year.
Haider Tuaima, Director and Head of Real Estate Research at ValuStrat, said: “The Dubai real estate market has shown impressive growth and resilience in recent months. The ValuStrat Price Index for Residential Capital Values increased by 6.4 per cent quarterly and 28.2 per cent annually, reaching 178.2 points.
“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 market activity and property valuations remained robust in the subsequent months.”
The office sector also performed well, with the VPI for office capital values surging by 31.7 per cent annually and 9.4 per cent quarterly, reaching 212.5 points. This marks the highest quarterly increase in a decade.
In the retail sector, Emaar Properties reported 98 per cent occupancy in their prime mall assets, while overall mall occupancy stood at 96 per cent during the first quarter of 2024.
The hospitality sector saw growth as well, with total international guests reaching 8.12 million as of May 2024, a 9.9 per cent increase compared to the same period last year.
Hotel occupancy reached 81 per cent, rising by 1.4 per cent year-on-year.
Despite these positive indicators, Tuaima added, “The decline in transaction volumes calls for a closer examination of market dynamics as stakeholders navigate this evolving landscape.”
For a detailed perspective on the property market, visit: Dubai - VPI Residential Capital Values - June 2024
