Dubai Real Estate Market Soars in Q1 2024

Dubai’s real estate market has seen exponential growth over the first quarter of 2024, driven by an increasing expatriate population, changes in real estate investor policies such as the Golden Visa, and a strong performance in non-oil sectors. Global real estate services provider Savills released the Dubai Residential Market – Q1 2024 report, which revealed a record-breaking first quarter in 2024.

Key Highlights

A substantial 35% quarter-on-quarter increase in transaction volumes, reaching an all-time high of 35,100 units.
Off-plan sales surged by 73% quarter-on-quarter, with 63% of Q1 transactions being properties under construction.
Apartments dominated the market, accounting for 83% of all transactions.
Rental rates in Dubai saw an average increase of 7% across the city.

Andrew Cummings, Head of Residential Agency at Savills Middle East, commented, “Dubai’s residential real estate market has continued an upward trajectory fueled by factors such as population growth, economic resilience, business confidence, and a thriving tourism and hospitality sector” (source, source, source).

Factors Driving Growth

The increase in expatriate population and favorable changes to investor policies, such as the Golden Visa, have significantly contributed to the robust growth of Dubai’s real estate market. The strong performance of non-oil sectors has further bolstered market confidence and activity (source, source).

Off-Plan Sales Surge

Off-plan sales experienced a remarkable 73% jump compared to the previous quarter, making up 63% of total transactions in Q1 2024. This surge can be attributed to the strong demand for high-quality assets from reputable developers, coupled with attractive incentives offered during project launches (source).

Market Activity Shifts

Market activity has shifted towards the Dubai Southeast submarkets, particularly in areas such as Jumeirah Village Circle (JVC), Arjan, Dubai Hills Estate, Meydan One, and Damac Hills 2. Other locations with robust demand include Business Bay, Downtown Dubai, Dubai Marina, and Jumeirah Lake Towers (JLT) (source).

Dubai’s Dynamic Growth

Dubai’s strategic initiatives and infrastructure investments have created a dynamic and appealing environment for both residents and investors. The city’s efforts to diversify its economy beyond oil have paid off, with significant contributions from tourism, real estate, and financial services. The government’s continuous push to make Dubai a global hub for business, tourism, and innovation has enhanced its attractiveness to international investors.

Ras Al Khaimah: An Emerging Real Estate Hotspot

While Dubai continues to dominate the UAE’s real estate market, Ras Al Khaimah (RAK) is emerging as a noteworthy contender. Known for its scenic landscapes and relaxed lifestyle, RAK is attracting significant interest from investors looking for opportunities beyond the bustling metropolis of Dubai.

RAK’s real estate market has seen steady growth, driven by its strategic location, attractive investment incentives, and a growing expatriate community. The emirate offers a more laid-back lifestyle compared to Dubai, appealing to families and retirees. Key developments in RAK include luxurious residential communities, commercial projects, and tourism infrastructure aimed at boosting its appeal as a top-tier destination.

Future Outlook

With these positive trends, Dubai’s real estate market is expected to continue its upward momentum throughout 2024, driven by strong investor confidence, ongoing infrastructure development, and strategic government initiatives aimed at fostering growth and sustainability. Similarly, RAK’s real estate market is set to grow as it leverages its unique strengths and continues to attract both local and international investors (source, source, source).