Engel & Völkers Middle East, known for its residential and commercial real estate services in the premium segment, has announced the remarkable performance of Dubai's residential real estate market in the first half of 2024. The market has continued its impressive growth trajectory, shattering previous records and setting new benchmarks.
In the first half of 2024, residential property sales in Dubai soared, with 77,233 transactions marking a 33.5% year-on-year increase and total sales value reaching AED 227 billion, a 31% rise compared to H1 2023. This phenomenal growth underscores Dubai's real estate market's robust demand and investor confidence.
The off-plan market drove over 60% of all transactions, reflecting strong investor interest in new developments due to their availability, competitive pricing, flexible payment plans, and high return potential. Popular communities included Jumeirah Village Circle, Dubai South, and Damac Hills 2, known for their affordability, modern amenities, and strategic locations.
During this period, apartments were the primary driver of growth, contributing 91% of the increase in transactions. Apartments' affordability, availability, and typically higher returns fueled significant demand, with apartment sales comprising over 80% of all transactions and increasing by 41% year-on-year.
The total transacted value rose by 33%. Jumeirah Village Circle (JVC) remained the most popular community for off-plan and secondary transactions, driven by affordable prices, a steady supply of new projects, and attractive potential returns for investors. Business Bay, a key commercial hub, also remained in high demand, underscoring its significance in the market.
Although the villa segment remains relatively small, it saw significant growth in H1 2024, with transactions increasing by 52% year-on-year and total sales value rising by 66%. This surge reflects strong demand from families seeking spacious homes and discerning buyers seeking prime properties.
New communities like The Acres, Dubai South, and Haven drove growth in off-plan villa sales due to desirable locations, lifestyle amenities, and investment potential. Meanwhile, secondary market volumes increased due to recently handed-over properties in communities like Damac Hills 2 and Tilal Al Ghaf, which attracted significant buyer interest.
The market's resilience was particularly evident following the April floods, with May surpassing the previous monthly transaction record by a remarkable 20%. Key infrastructure projects demonstrate Dubai's commitment to sustained growth and development, including the recently announced $8 billion drainage system, the $35 billion Al Maktoum Airport expansion, and the $5 billion Dubai Metro Blue Line.
Dubai's luxury real estate segment continues to flourish, with a 47% year-on-year transaction increase. The UAE is projected to be the largest recipient of millionaires globally in 2024, fueling the demand for opulent villas and branded residences. This segment is poised for another exceptional year.
The iconic Palm Jumeirah remains Dubai's leading luxury community, consistently attracting high-value transactions. Mohammed Bin Rashid City and Dubai Hills Estate are closely followed and are known for their family-friendly environments, great amenities, and stunning contemporary villas. Emerging communities like Dubai Islands and Palm Jebel Ali are also popular among affluent buyers, diversifying options in Dubai's high-end real estate market.
Reflecting on these achievements, Daniel Hadi, CEO at Engel & Völkers Middle East, stated, "The first half of 2024 has been extraordinary for Dubai’s residential real estate market. The unprecedented growth in sales transactions and value is a testament to Dubai's resilience, strategic infrastructure investments, and appeal to global investors. As we look ahead, we are optimistic about this dynamic market's sustained growth and transformation."
With Dubai’s population increasing by over 100,000 annually and an economy projected to expand by 4% in 2024, the outlook for the real estate market remains highly positive. Engel & Völkers is excited to continue playing a pivotal role in this vibrant market, delivering exceptional service and expertise to our clients.
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