The Dubai real estate sector saw 10,000 new properties enter the market in Q1, according to the Asteco Q1 2024 real estate report.
Asteco says that Dubai’s real estate market remains resilient and shows strong signs of progress in 2024.
Dubai’s strong economic performance and commitment to enhancing the quality of life and attracting skilled professionals will continue to attract a substantial number of expatriates.
Dubai real estate supply
During Q1 2024, the Dubai market witnessed the delivery of over 10,000 residential units comprising 7,300 apartments and 2,750 villas.
This represents a significant increase compared to the previous quarter and sets a promising trajectory for the year ahead.
An additional 30,000 units are also anticipated to enter the market by the end of 2024.
The rental rate growth has proven a mixed bag over the past three months. While average apartment and villa rental rates have more or less remained unchanged, rental rate growth has varied across different communities.
Annually, growth rates have slowed to single digits, with villas at 6 per cent and apartments following closely at 10 per cent.
Dubai Land Department (DLD) data indicates a 4 per cent decline in the number of new contracts issued in Q1 2024 compared to both the previous quarter and the corresponding period last year.
On the other hand, the volume of renewals increased by 5 per cent quarter-on-quarter and 12 per cent year-on-year, with numerous tenants consenting to above-average rental hikes.
Similar to the leasing market, average sales prices for both apartments and villas remained relatively stable throughout Q1 2024, with some variations observed at the community level.
Annual growth rates stood at 6 per cent for apartments and 8 per cent for villas, respectively.
The new year 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), which is attributed to factors such as lower initial investment costs, greater rental demand, higher occupancy rates and shorter vacancy periods. The off-plan market remained prominent in terms of both value and volume of transactions.
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