Dubai Real Estate Market Overview: Q1 2024
The first quarter of 2024 marked a significant period for Dubai’s real estate market, showcasing remarkable growth and resilience. Here are the key highlights:
Record-Breaking Transactions
– Sales Transactions: Dubai witnessed 37,154 registered sales transactions in Q1 2024, a 20% increase from Q1 2023, marking the highest performance for a quarter ever recorded.
– Transaction Value: The total sales transaction value reached AED 109.85 billion, a 23.3% increase compared to AED 89.09 billion in Q1 2023, showcasing strong economic growth and a booming tourism industry.
Top Performing Areas
– Leading Areas: The top areas by transaction volume were Al Barsha South Fourth (10.6%), Business Bay (8.2%), and Madinat Dubai Almelaheyah (5.9%).
– Significant Growth: Areas outside the top ten, such as Madinat Hind 4, Al Hebiah Sixth, and Bukadra, saw extraordinary growth, with increases of 756%, 651%, and 454% respectively compared to Q1 2023.
Off-Plan Market Dynamics
– Off-Plan Transactions: Off-plan sales recorded 20,565 transactions in Q1 2024, a 28.6% increase from Q1 2023, marking the highest performance for a quarter ever.
– Top Areas: Al Barsha South Fourth led the off-plan market with 13.7% of total transactions, followed by Madinat Dubai Almelaheyah (12.8%) and Business Bay (7.3%).
Rental Market Trends
– Rental Contracts: The rental market saw a significant increase with 202,209 rental contracts in Q1 2024, a 29.1% year-on-year increase, marking the highest performance for a quarter ever recorded.
– New vs. Renewed Contracts: Approximately 50.8% of the rental contracts were new, while 49.2% were renewals. Residential contracts accounted for 61.9% of the total, with commercial and other purposes making up 37.2%.
Price and ROI
– Average Prices: The average asking price per sqft for apartments saw a 13.6% increase from Q1 2023, led by significant hikes in one and two-bedroom apartments.
– Rental Yields: Jumeirah Village Circle (JVC) recorded the highest ROI for one, two, and three-bedroom apartments, with returns of 7.8%, 7.4%, and 6.4% respectively. Dubai Marina followed with returns of 6.8%, 6.5%, and 6.3%.
Investment Opportunities
– Villas: The most demanded areas for villas included Dubai Hills Estate, Palm Jumeirah, and Arabian Ranches. The average prices for five-bedroom villas saw notable changes, with Arabian Ranches experiencing a 57.14% increase.
– ROI for Villas: Al Barsha recorded the highest rental yields for three-bedroom villas at 5.8%, making it a lucrative investment area.
Conclusion
Dubai’s real estate market in Q1 2024 has demonstrated significant growth across both sales and rental sectors. With record-breaking transactions, increasing property values, and high rental yields, Dubai continues to be an attractive destination for real estate investment.
For detailed insights and further information, refer to the comprehensive report by Market Watch Q1 2024 by clicking on this link : https://unwind-properties.com/wp-content/uploads/2024/05/MW-UAE-Q1-2024-Final-1.pdf
