Dubai’s real estate market grew 21% in Q2 2024, with over 35,300 transactions driving a surge in property values.
The Dubai real estate market experienced unprecedented activity in Q2 2024, with over 35,300 transactions recorded, according to a comprehensive report by Primo Capital Experts . The findings show significant market trends and strong growth across the UAE’s real estate sector.
Primo Capital ExpertsPrimo Capital’s study revealed a 20.5% year-on-year increase in residential transaction volumes and a 20.7% rise in average residential property values. The report also showcased the sector’s adaptability amid evolving economic conditions revealing surges in commercial and industrial rents.
The residential real estate market in Dubai reached an all-time high in Q2 2024, with 35,310 transactions – a 20.5% increase from the previous year. The surge was driven by a 23.9% increase in off-plan property transactions and a 15.2% rise in secondary market transactions. This growth reflects continued confidence among buyers and a strong demand in the market.
Property prices also showed a dynamic upward trend, with average costs for homes in Dubai increasing by 20.7% year-on-year. Specifically, prices for flats rose by 20.4% and villas by 22.1%. These increases affirm Dubai’s position as a premier global destination for real estate investment.
In Abu Dhabi, the residential sector also expanded, with villa prices rising by 2.3% and apartment prices by 4.3% year-on-year.
Driven by the expanding needs of businesses in the UAE’s thriving economy, Dubai’s commercial real estate market saw average rents increase by 22.2% annually and 17.1% quarterly. The industrial sector also experienced a 14.3% rise in annual rental rates for warehouses and storage spaces, highlighting the demand for logistics and distribution facilities.
The hospitality sector demonstrated resilience with a 0.9% increase in average occupancy rates, despite high visitor numbers. Retail rental rates in Abu Dhabi and Dubai saw substantial annual increases of 14.7% and 10.5%, respectively, due to a supply-demand mismatch and heightened commercial activity.
Primo Capital agents predict sustained growth in the UAE real estate market, driven by a healthy economy, high ROI, attractive capital returns, and favourable government policies. Mohammad Zeaiter, Senior Property Advisor at Primo Capital, emphasised the shift towards customer-centric construction, allowing buyers to customise properties to their preferences.
Zeaiter said that the lucrative ROI and capital gains in the UAE real estate market are currently attracting international investors more than major cities like New York, London, Singapore, and Hong Kong.
