Neither rain, heat nor a full week of holidays can stop the Dubai real estate market from delivering stable results. The real estate market continues to record strong growth. The latest results for the first quarter of 2024 show an impressive transaction volume and underline the resilience and attractiveness of the Dubai market.
In the first three months of 2024 alone, Dubai's real estate sector recorded over 36,500 sales transactions, an increase of 17.5% compared to the same period last year.
An interesting shift in transactions has been emerging for several quarters: Existing properties are enjoying great popularity, as evidenced by growing transactions. 17,752 existing properties changed hands in the first quarter of 2024 - a massive increase of 47.6% compared to Q1 2023. The total volume of transactions amounted to AED 61.4 billion, which clearly shows that the local market (secondary market) is very liquid.
On the other hand, the off-plan real estate segment recorded 18,754 transactions with a total sales value of AED 47.2 billion. The share of this segment has thus fallen slightly compared to the previous year at a high level of 1.6%.
This data indicates not only a quantitative increase in transactions, but also a qualitative shift in investor preferences and market dynamics. While the market shows a clear preference for completed properties, the off-plan segment continues to make a significant contribution. It seems important to us that off-plan transactions have stabilized at a high level compared to the previous year and are unlikely to grow at the usual pace in the future. Despite the moderate weakening of the off-plan market, it is difficult to predict the impact on price levels. In our view, prices per square meter are likely to develop 'sideways' at a high level.
The most popular areas for real estate purchases in Q1 2024 include JVC, Business Bay, Madinat Dubai and Dubai Marina.
In summary, the Dubai real estate market continued to be characterized by growth in the first quarter of 2024, driven by economic stability and investor confidence.
We expect the trend to continue for a few more quarters, but certainly for the full year 2024. In our view, Dubai remains attractive for both local and internationally active investors and is likely to benefit more than average from the long-term and visionary planning of the Dubai metropolis in the near future.