Dubai Property Market Achieves Record-Breaking High in H1 2024
Aug 05 2024 :The Dubai property market has reached a historic milestone in the first half of 2024, with total sales value soaring to AED 233 billion. This achievement marks the highest capital value growth in the Middle East, surpassing major global cities such as New York and Singapore.
Key Highlights:
6x the Value of 2020: The H1 2024 market value is six times greater than the sales value recorded in 2020.
Tripled vs 2021: Compared to 2021, the market value has tripled.
Doubled vs 2022: The value has doubled since 2022.
30% Growth vs 2023: There has been a 30% increase in sales value compared to 2023.
Yearly Sales Value Comparison:
2020: AED 31.66 billion
2021: AED 61.32 billion (93.6% increase)
2022: AED 114.35 billion (86.6% increase)
2023: AED 179.88 billion (57.2% increase)
2024: AED 233 billion (29.4% increase)
These figures highlight the remarkable growth trajectory of Dubai’s property market, positioning it as a leading global real estate hub.
Capital Value Growth in H1 2024
DXB Interact reports that Dubai’s prime residential market has seen a 2.9% growth in capital value in the first half of 2024. This growth rate exceeds that of other major cities such as London, Singapore, and New York, which have experienced declines. Dubai now ranks fifth in the Prime Residential World Cities Index, following Lisbon, Amsterdam, Madrid, and Athens.
Driving Factors:
High-Quality Investment Opportunities: Dubai provides luxurious homes with top-notch amenities, a vibrant lifestyle, and excellent connectivity.
Record-Breaking Transactions: Increased transaction volumes and values have significantly contributed to the market’s growth.
Strategic Developer Activity: Leading brands and developers are launching world-class projects to meet rising demand.
Rental Market Performance
Dubai has also led global rankings in rental value growth, with a 12.1% increase. This surge surpasses cities like Bangkok and Lisbon, driven by Dubai’s strong lifestyle appeal and an influx of corporate relocations.
H2 2024 Outlook:
Rental vs. Capital Values: Rentals are expected to continue outpacing capital values due to ongoing supply constraints in many cities.
Impact of Interest Rates: High interest rates have pushed potential buyers into the rental market. However, anticipated rate cuts in the latter half of the year may drive some renters back to the sales market, potentially easing price pressures.
Projected Growth: forecasts an average capital value growth of 0.5% in the second half of the year, leading to a total growth of 1.3% for 2024.
Dubai’s real estate market is on a strong growth trajectory, fueled by robust demand, strategic developments, and favorable economic conditions. The emirate remains a premier destination for real estate investment, offering significant value to investors and end-users alike.
Discover More: For further insights into the UAE real estate market, corporate earnings, and future trends in technology and finance, visit Gold Mount Real Estate