Dubai Property Market Soars To New Heights

After an “explosive” 2023, the UAE’s real estate market has continued its ascent in 2024 – albeit at a more measured pace.

Analysis by Hamptons International describes a “phenomenal” first half in Dubai – the front-running market – with over 80,000 property transactions adding up to a total value of more than AED 232 billion.

That marks a significant increase in volumes compared to the same period in 2023, with off-plan sales accounting for over 65% of all transactions “indicating strong investor confidence in the Emirate’s future potential”.

A limited supply of readily available properties, particularly in Dubai, is creating a scenario where demand outstrips supply, said the firm, which is leading to price increases. The trend is expected to continue in the near future unless there is a “significant influx” of new project completions.

The prognosis for the market is generally positive, with investor confidence high, and being fuelled by supportive government policies and a thriving business environment.

But – there are some potential challenges on the horizon: namely the rise in global interest rates and latent supply issues. “Without a healthy supply pipeline, the current seller’s market could exacerbate price hikes, potentially creating a bubble in the long run,” warns the agency.

Market focus: Dubai

- 80,000 property transactions recorded in H1 2024, almost 20,000 more than the same period in 2023, with a total value exceeding AED 232bn
- Apartment sales transactions up by 28% year-on-year
- Villa sales down by 46% on the same period in 2023
- May 2024 was the busiest month of 2024 so far, with 17,539 sales transactions lodged
- Average villa/townhouse prices rose by 28% and apartments by 17%
- Off-plan sales accounted for over 65% of all transactions
- Cash transactions accounted for roughly 75% of all property sales
- 453,800 new rental transactions recorded in H1 2024, up 9% on the same period in 2023
- Villas and townhouses saw average rental prices increase 23% compared to H1 2023