The Dubai real estate sector saw 77,233 transactions in the residential property sales segment in the first half of this year, according to Engel & Völkers Middle East.
The premium property experts said this represents a 33.5 per cent year-on-year increase and total sales value reaching AED227bn ($62bn), a 31 per cent rise compared to H1 2023.
This growth underscores the robust demand and investor confidence in Dubai’s real estate market.
Dubai real estate H1 sales
The off-plan market drove more than 60 per cent 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 per cent of the increase in transactions. The affordability, availability, and typically higher returns of apartments fuelled significant demand, with apartment sales comprising more than 80 per cent of all transactions and increasing by 41 per cent year-on-year.
The total transacted value rose by 33 per cent. 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 per cent year-on-year and total sales value rising by 66 per cent.
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 per cent.
Key infrastructure projects, including the recently announced $8bn drainage system, the $35bn Al Maktoum Airport expansion, and the $5bn Dubai Metro Blue Line, demonstrate Dubai’s commitment to sustained growth and development.
Dubai’s luxury real estate segment continues to flourish, with a 47 per cent year-on-year transaction increase.
The UAE is projected to be the largest recipient of millionaires globally in 2024, fuelling 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 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.
Daniel Hadi, CEO at Engel & Völkers Middle East said: “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 its appeal to global investors.
As we look ahead, we are optimistic about the sustained growth and transformation of this dynamic market.”
With the city’s population increasing by more than 100,000 annually, and an economy projected to expand by 4 per cent in 2024, the outlook for the real estate market remains highly positive.
Source: Arabian Business
