The Dubai real estate sector saw record activity in Q2 (April to June) with more than 35,300 transactions, according to Primo Capital Experts.
The UAE real estate company has published a thorough study for Q2 2024 that highlights significant market trends and strong growth in the UAE’s real estate market.
As well as an increase in transaction volume by more than 20 per cent, the average value of residential real estate in the emirate increased 20.7 per cent.
Dubai real estate growth
Based on its findings, Primo Capital has identified important indicators and significant breakthroughs impacting the sector as the region navigates changing economic conditions in all unit categories.
Q2 2024 saw a faster increase in several categories than Q2 2023:
Residential transaction volumes increased by 20.5 per cent year-on-year
Average residential prices in Dubai rose by 20.7 per cent year-on-year
Commercial rents in Dubai surged by 17.1 per cent quarter-on-quarter
Industrial rents in Dubai increased by 14.3 per cent year-on-year
Average retail rents in Abu Dhabi grew by 14.7 per cent year-on-year
Residential real estate
The residential market of Dubai saw unheard-of levels of activity in the second quarter of 2024, with overall transaction volumes hitting an all-time high of 35,310 transactions—a significant 20.5 per cent rise year over year.
The substantial 23.9 per cent increase in off-plan property transactions coupled with a noticeable 15.2 per cent increase in secondary market transactions were the main drivers behind this surge.
This trend in UAE properties underscores the enduring confidence among prospective buyers and catered strong demand in the industry.
The rising trend of property prices is indicative of a dynamic market sentiment. The average cost of a home in Dubai increased by 20.7 per cent year over year, with rises of 20.4 per cent and 22.1 per cent for flats and villas, respectively.
This acceleration confirms that, despite wider economic shifts, Dubai remains a top destination for real estate investment worldwide.
The average price of a villa in Abu Dhabi increased by 2.3 per cent year over year, while the average price of an apartment increased by 4.3 per cent, indicating continuous expansion in the residential sector of the emirate.
Commercial and industrial real estate
In Dubai, the commercial real estate market has shown remarkable performance, with average rents increasing by 22.2 per cent annually and 17.1 per cent quarterly.
This rise happened because the companies and businesses required expansion in the thriving economy of the UAE.
Moreover, the requirements for warehouses and storage rooms to distribute and supply goods in Dubai increased annual rental rates by up to 14.3 per cent in the industrial and logistics sector.
Hospitality and retail real estate
The hospitality industry in the UAE continued to do well despite high visitor rates. An annual increase of 0.9 percentage points was observed in average occupancy rates, indicating the sector’s resilience and adaptability.
The significant increases in retail rental rates that both Abu Dhabi and Dubai saw in the year preceding Q1 2024—average rentals rising by 14.7 per cent and 10.5 per cent, respectively—are indicative of a supply-demand mismatch and increased commercial activity.
Comparison to previous quarters
Real estate agents working at Primo Capital have predicted the continual growth of UAE real estate based on factors including a strong economy, substantial ROI, higher capital returns and favourable policies of the UAE government practicing in the country.
Mohammad Zeaiter, Senior Property Advisor at Primo Capital, said leading developers in UAE have shifted their focus from one rigid design to customer-centric construction, giving the buyers the freedom to choose, change and customise according to their tastes and preferences.
Moreover, Zeaiter said, the fertile grounds of real estate market guarantees steady ROI and higher capital gain are captivating the international investor’s interest more than any other major metropolitan cities including New York, London, Singapore and Hong Kong.
Source: Arabian Business
