Staff Report,
Dubai, UAE
Dubai’s residential real estate market has marked its highest quarterly growth in the first quarter of 2024, exhibiting 35 percent quarter-on-quarter increase in transaction volumes to 35,100 units. Savills, a global real estate services provider, attributes the sector’s exponential growth to increase in expatriate population, real estate investor policy changes to the Golden Visa, and a strong performance in non-oil sectors.
Andrew Cummings, Head of Residential Agency at Savills Middle East, said, “Dubai’s residential real estate market has continued an upward trajectory fuelled by factors such as population growth, economic resilience, business confidence, and a thriving tourism and hospitality sector.”
Off-plan properties constituted 63 percent of the total transaction with sales jumping 73 percent compared to the previous quarter. Apartments constituted 83 percent of all transactions, with primary sales making up 63 percent of the demand.
Alec James Smith, Director of Sales and Leasing at Savills Middle East, said, “In the first quarter of 2024, approximately 5,000 units were introduced to the market. Notable launches included Mercedes-Benz Places, Claydon house by Ellington, Franck Muller Aeternitas Tower in Dubai Marina, and Vida Dubai Hills by Emaar, with apartments making up 84 percent of these launches, signalling the confidence in this market segment going ahead.”
Villa transactions surged as well in notable locations like Damac Lagoons, Damac Hills 2, The Valley, and Tilal al Ghaf.
Market activity is concentrated largely in the Dubai’s southeast regions, particularly in micro-markets such as Jumeirah Village Circle (JVC), Arjan, Dubai Hills Estate, Meydan One, and Damac Hills 2. Across other areas, demand remained robust in locations such as Business Bay, Downtown Dubai, Dubai Marina, and Jumeirah Lake Towers (JLT).
High-end luxury properties priced at Dh10 million or more experienced a 51 percent growth in transactions from the earlier quarter. In the first quarter of 2024, over 1,000 transactions exceeding Dh10 million were recorded, representing 41 percent year-on-year growth. Notably, Palm Jumeirah, Business Bay, and Bluewaters Island lead the list of upscale locations in terms of per square foot rates for apartments. Meanwhile, Dubai Hills, Palm Deira, District One, and Tilal Al Ghaf command the highest per square feet rate in villa transactions.
Dubai witnessed the largest ultra luxury-home price growth among 30 global cities in 2023 with values surging 17.4 percent, according to Mansion Global. The emirate recorded 108 sales out of the total 411 global super-prime properties valued at US$10 million (Dh36.73 billion) and above.
On the unceasing global demand for prime properties, Ujjwal Goel, Director of Teraciel Group, said, “Within the super-prime niche that we focus on, one we classify as properties worth $25 million and above, slower price growth is especially appealing as it means that properties may be available at more reasonable prices. However, most people purchasing real estate at this price point aren’t usually too concerned about the cost associated with their investment; they care about securing customized high-end villas that are built with the utmost quality, tailored to their personal preference.”
Dubai’s real estate performance in the first quarter of 2024 shows promising signs of the industry for the rest of the year. Underpinned by numerous innovative project launches and handovers, the Dh634 billion strong market will continue attracting local and foreign investors, and consequently push the transaction volume further.
Ends
Also read: Dubai prime market leads globally as capital value jumps 17.4% in 2023
