A new report has predicted a huge growth in the number of Dubai homes on the market by the end of this year.
The Asteco Q2 2024 real estate report has predicted 25,000 more new homes will come to market before 2025.
It is yet another example of the reliance, and growth, of the Dubai property market.
These new homes coming on-line are driven by continued economic growth, infrastructure development, and an expanding population.
“The real estate market in Dubai has maintained a high level of activity over Q1
2024, with a steady flow of project launches. However, there has been a rise in
competition for high-profile launches from Ras Al Khaimah (RAK), particularly
centred on the debut of a ‘casino’, leading to an uptick in project announcements.“Dubai’s Tier-1 developers maintained momentum by introducing new phases
within established mega projects. Tier-2 developers, both established and
emerging players, also contributed significantly to the landscape with an array of
noteworthy launches.“Asteco’s records reveal the delivery of over 10,000 residential units in Q1 2024,
Dubai Real Estate Report, Asteco
comprising 7,300 apartments and 2,750 villas. This represents a significant
acceleration compared to the previous quarter and sets a promising trajectory
for the year ahead. Looking forward, an additional 30,000 units are anticipated to
enter the market by the end of 2024.”
The sales market for Dubai homes remained strong, driven by ongoing project launches that boost off-plan transactions.
While Q2 2024 recorded a steady 2% growth in average sales prices, several areas, including Jumeirah Village and Business Bay, experienced above-average sales price growth.
“The new year also witnessed a gradual change in buyer preferences, with apartments in established communities such as Jumeirah Village Circle (JVC), Business Bay, Dubai Marina and Downtown Dubai gaining increased traction. “Apartments typically yield higher Return on Investment (ROI) compared to villas, which are favored by end-users. This is attributed to factors such as lower initial investment costs, greater rental demand, higher occupancy rates and shorter vacancy periods.”
Dubai Real Estate Report, Asteco
Lenders have also started offering enhanced financing options for off-plan properties, allowing investors and buyers to secure up to 10% more funding during construction.
This additional funding is typically available for projects with at least 50% construction progress, ensuring a degree of risk mitigation for the lender.
This move not only stimulates the off-plan market, but also broadens accessibility to potential investors.
