The Dubai real estate market has shown impressive growth and resilience in recent months, according to the Real Estate Research Second Quarter 2024 report, from ValuStrat.
Their Price Index for Residential Capital Values increased by 6.4% quarterly and 28.2% annually, reaching 178.2 points.
Despite severe flooding caused by record rainfalls earlier in the year, the quick and effective response from developers and authorities helped to mitigate the damage, ensuring that market activity and property valuations remained robust.
Also, in the wider economy, according to the Central Bank of UAE, economic growth in the country is expected to surpass 6% in 2025.
The IMF expects the country’s GDP to rise by 4% in 2024, while average inflation is
anticipated to be around 2%.
Dubai has also claimed the top spot on the 2023 Foreign Direct Investment (FDI) Index for cultural and creative industries, according to the Financial Times ‘fDi Markets’ report.
In the prime end of the market, Dubai saw prices rise by 29.9% annually and 6.5% quarterly, setting a new record at 184.3 points.
Meanwhile, premium apartments are catching up with villas, with capital gains increasing by 23.1% annually and 4.8% quarterly, reaching 156.5 points.
Notably, Palm Jumeirah surpassed the 2014 price highs for apartments in Dubai, the first apartment location to do so.
“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% quarterly and 28.2% 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.
“Prime properties, known for their superior views, amenities and layouts, saw prices rise by 29.9% annually and 6.5% quarterly, setting a new record at 184.3 points. Premium apartments are catching up with villas, with capital gains increasing by 23.1% annually and 4.8% quarterly, reaching 156.5 points. Notably, Palm Jumeirah surpassed the 2014 price peaks for apartments in Dubai, the first apartment location to do so.”
Haider Tuaima, Director & Head of Real Estate Research, ValuStrat
The report reveals that top off-plan locations in Dubai’s property market during Q2 included Jumeirah Village Circle, Business Bay and Meydan One.
Conversely, ready secondary home transactions in Dubai saw a 1.7% quarterly decline but a 4.8% annual rise, equivalent to investments worth AED 29.3bn.
Notably, the average ticket size of ready properties grew by 7.6% quarterly and 4.7% annually to AED 2.5m.
It comes as a report from Springfield Properties revealed that Dubai’s real estate market has demonstrated exceptional resilience and growth in Q2 2024.
The most recent quarter has seen unprecedented increases in property values, transaction volumes and investor confidence.
