Dubai’s residential property market registered a 35.7 percent jump in the total transaction value to reach about $33.5 billion (AED 124 billion) in the April-July quarter of 2024, according to the latest market report.
The total transaction volume also saw a substantial rise, with 48,220 transactions recorded, marking a 60.06 percent year-on-year growth, the Q2 2024 report by Springfield Properties, a leading Dubai-based real estate brokerage firm, said.
May 2024 was a standout month, with property values soaring to AED 47.3 billion, posting a remarkable 39.12 percent increase from the corresponding month of last year, it said.
“The unprecedented increases in property values and transaction volumes in the second quarter of this year reflect heightened investor confidence and sustained demand,” Springfield Properties said.
“Dubai’s real estate market has demonstrated exceptional resilience and growth in the second quarter of 2024. Our data underscores the city’s strong investor confidence and its growing appeal as a global investment destination,” Farooq Syed, CEO of Springfield Properties, said.
The brokerage firm said the comparison of transactional values indicates a steady upward trend.
“In Q2 2023, the total transaction value was AED 90 billion with 30,000 transactions. By Q1 2024, this had increased to AED 110 billion with 40,000 transactions.
“The continued growth into Q2 2024, with a transaction value of AED 123 billion and 48,220 transactions, highlights the robust health of Dubai’s real estate market,” it said.
In terms of market dynamics, the off-plan market showed strong performance, peaking at 10,836 units transacted in May 2024.
Similarly, the ready property market saw steady growth, with 8,818 units transacted in May 2024, demonstrating continued investor interest and market confidence.
Factors driving Dubai’s real estate
Dubai’s real estate market resilience and growth are driven by strategic investments, regulatory updates, and significant infrastructure projects, the report said.
“The UAE Central Bank’s projected 6.2 percent GDP growth by 2025 supports the sector’s resilience and national economic contribution.
“Additionally, the expansion of Al Maktoum Airport is anticipated to enhance property values and attract both residential and commercial investments, further bolstering the market,” the report said.
The report also highlighted the economic benefits of millionaire migration to Dubai for the real sector’s growth.
“The city continues to attract high-net-worth individuals, with projections of 6,700 new millionaires in 2024. This influx is expected to drive substantial growth in the real estate sector, reflecting Dubai’s appeal as a premier investment destination,” it said.
Syed said looking ahead, the remainder of 2024 promises continued prosperity with a focus on sustainability, green and blue infrastructure, and the development of high-end mixed-use communities.
“These strategic initiatives are designed to provide modern living standards, promote a diverse range of needs, and attract a broad spectrum of residents and investors,” the Springfield Properties’ top executive said.
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