Dubai real estate market in Q1 2024

Continued economic growth and high demand in the first quarter of 2024 have strengthened the resilience and attractiveness of Dubai’s real estate market to investors and residents. These positive trends continue to make the emirate a favorable environment for real estate investment.

Dubai Real Estate – Here are the results:

Dubai’s residential and commercial real estate market grew in the first quarter of 2024, according to Property Finder’s quarterly report.

The demand for buying and renting residential and commercial real estate is growing. Sales transactions in the Dubai real estate market increased by 17% year-on-year in the first quarter of 2024. If in 2023, 31,000 transactions were made during this period, this year more than 36,000 transactions were recorded. Total deal value increased by 30% to nearly AED 115.6 billion ($31.476 billion).

At the same time, there was also significant growth in the ready real estate sector, with 19,6000 registered transactions. This figure is 30 percent higher than at the same time last year. The value rose 46% to AED 78.2 billion ($21.29 billion) from AED 52 billion ($14.16 billion) in Q1 2023.

Off-plan contracts rose 4% year-on-year to a total of 16,6,000 contracts, with a value increase of about 5% to AED 37.4 billion ($10.18 billion).

Both the number and value of contracts have nearly tripled over the past decade. Although the real estate market experienced an increase in volatility in the first quarter of 2023, demand increased steadily in the first quarter of this year, without sudden increases or decreases.

Such trends are supported by population flows, tourism development, economic growth, government initiatives and improved transport infrastructure. New metro lines, roads and various platforms are being built.

Sales

By April 2024, the average sales value for all properties has increased. The prices of villas and plots increased the most. This is due to the increasing number of families with children moving to the emirate, as well as the demand for luxury properties from high net worth individuals (HNWI) around the world. In the first quarter, 105 apartments were sold for more than AED 36.5 million ($10 million). The total value of such deals was 6.35 billion UAE dirhams ($1.73 billion), up 6% from the first quarter of 2023.

As demand for quality real estate continues to grow, developers have launched a number of luxury projects in the first quarter of 2024. These include Armani Beach Residences by Arada, Mercedes-Benz Places by Binghatti Properties, Altitude by DAMAC Properties and by GRISOGONO another.

The number of real estate purchase/sale transactions increased both in quantity and value compared to the corresponding period in 2023, while the demand for unplanned and completed real estate was almost the same.

Residential purchases accounted for nearly 90% of all real estate transactions. The highest demand was for apartments, which grew by almost 25% compared to the first quarter of 2023. Request for villas, on the other hand, fell by 9.4%. Commercial transactions accounted for only 2% of the total number of transactions due to their limited supply.
Apartments for rent
As a commercial and tourist center, Dubai attracts businessmen, foreigners and expatriates from the United Arab Emirates. For expats, the emirate is the 9th most popular destination in The Global Expat Index, increasing the number of renters and leading to rapid increases in property rental values. In the first quarter of 2024, the average rental prices of apartments and villas increased by 20%, and the average rental prices of villas by 15.8%. Apartments require both long-term and short-term rentals, while villas are popular with families with children.

After RERA changes on real estate indices and new revaluation rules are announced, rental values will increase by 10-20%. Coupled with falling mortgage interest rates, such a development could lead to an increase in demand for real estate.

The rental value of commercial premises increased by 43.5% per year and averaged 55.1,000 AED ($15,000) per year. Demand for commercial real estate in Dubai is increasing due to low supply and stiff competition, opening up lucrative investment opportunities.
Development of Metropolitan Group in the first quarter of 2024
Since its establishment in 2008, Metropolitan Group has performed excellently in the real estate market. In the first quarter of 2024, it received the prestigious Feefo Platinum Service Award, the Best Estate Agency Arabia award at the International Property Awards and was ranked 6th in the Best Places to Work in the UAE list.

Metropolitan Group was also honored with several real estate awards:

  • 4th place at Emaar’s Annual Broker Awards 2023
  • RAK Properties Top 10 Agency Sales Volume and Top 9 at Sobha Broker Awards 2023
  • Majid Al Futtaim is MAF- i TOP 2 of all time

The company works with leading developers to offer customers the best deals on the market. According to Metropolitan Group’s results for the first quarter of 2024, Emaar Properties’ properties were the most popular among the agency’s clients. The company made more than 33% of transactions with the properties of this developer. DAMAC Properties came in second with 15.47% of transactions. Sobha Realty was in third place with more than 6 percent of real estate transactions.

Most Metropolitan Group buyers preferred the off-plan market – 51.4% of all transactions were made in this segment. Outbuildings accounted for 30% of transactions and rentals for 18.6%. Palm Jumeirah and Dubai Creek Harbor were the most desirable places to buy property.

The company’s excellent results demonstrate its development and confirm Metropolitan Group’s position as one of the leading agencies in the UAE real estate market.

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