Engel & Völkers Center East, identified for its residential and business actual property companies within the premium phase, has launched its Q3 2024 Dubai Actual Property Market Report, showcasing a sturdy efficiency throughout each sectors.
Dubai’s actual property market continues to draw international curiosity, with mixed residential and business gross sales reaching AED 138.8 billion for the quarter. Residential transactions surged by 40.8% year-on-year, contributing AED 115.6 billion, whereas the business market added AED 23.2 billion in gross sales, reflecting a 28% improve in whole transaction worth in comparison with the identical interval in 2023.
Dubai’s thriving actual property market is buoyed by sturdy financial fundamentals, rising international funding, and the emirate’s attraction as a vacation spot for high-net-worth people and companies. This momentum is ready towards the UAE’s projected financial development of three.9% for 2024, accelerating to six.2% in 2025, pushed by key sectors corresponding to tourism, actual property, and worldwide commerce.
“Dubai’s actual property market continues to display its resilience and attraction to a worldwide viewers, as residential and business sectors are experiencing vital development. Town’s strategic imaginative and prescient, business-friendly surroundings, and world-class infrastructure proceed to draw traders worldwide,” stated Daniel Hadi, CEO of Engel & Völkers Center East. “With demand for premium properties at an all-time excessive and the federal government’s financial diversification initiatives bolstering development in key sectors, we anticipate continued upward momentum throughout all actual property segments.”
Residential Market: Off-Plan Demand Leads the Means
Dubai’s residential sector posted sturdy ends in Q3, with whole transaction volumes growing by 40.8% year-on-year, reaching AED 115.6 billion. Off-plan properties accounted for over 65% of whole transactions, pushed by the launch of recent tasks and rising investor curiosity.
In Q3 alone, greater than 30,000 off-plan items have been offered, a 62.5% improve from final 12 months. Communities like Jumeirah Village Circle, Dubai Hills Property, and Enterprise Bay led the best way. On the similar time, new developments in areas like Dubai Creek Harbour and Sobha Hartland II additionally attracted vital consideration.
Transaction volumes rose by 12.8% within the secondary market, reflecting the sustained demand for ready-to-move-in properties. Key communities corresponding to Jumeirah Village Circle, Dubai Marina, and Enterprise Bay skilled sturdy residence gross sales. In distinction, villa and townhouse gross sales surged in Emirates Dwelling, Al Furjan, and Mohammed Bin Rashid Metropolis regardless of worth will increase exceeding 15% in lots of areas.
Luxurious Market: File-Breaking Yr in Sight
Regardless of a modest 6% decline in transactions over AED 10 million in comparison with Q3 2023, Dubai’s luxurious actual property market stays on observe for a record-breaking 12 months. The Palm Jumeirah, Dubai’s iconic high-end group, recorded 110 transactions over AED 10 million, together with three exceeding AED 200 million. Amongst these was the sale of a penthouse for AED 275 million, showcasing the sustained urge for food for ultra-luxury properties.
Different established luxurious communities like Mohammed Bin Rashid Metropolis and Dubai Hills Property continued to see sturdy demand. On the similar time, rising areas corresponding to The Oasis and Palm Jebel Ali highlighted the broadening attraction of Dubai’s luxurious market, attracting high-net-worth people in search of unique properties within the metropolis.
Business Market: Sturdy Demand for Workplace and Retail Areas
The business actual property sector posted spectacular development in Q3, with AED 23.2 billion in gross sales, a 28% year-on-year improve in transaction worth. Workplace gross sales rose 12.6%, whereas retail transactions surged 16.8%, signalling sturdy demand for premium business properties. Prime districts corresponding to Enterprise Bay and Jumeirah Lakes Towers (JLT) remained the highest decisions for workplace areas, underscoring Dubai’s attraction as a worldwide enterprise hub.
Regardless of a slight 6.5% decline in total business gross sales volumes, the worth of transactions has surged, pushed by rising costs for high-quality belongings. Moreover, the leasing market witnessed upward developments in rents, with workplace and retail rents rising by 4% and warehouse rents leaping by 19%, reflecting sturdy demand within the industrial sector.
Leasing Market: Demand Stays Resilient Amid Rising Costs
The leasing market throughout Dubai stays buoyant, supported by the town’s rising inhabitants. Communities like Jumeirah Village Circle, Dubai Silicon Oasis, and Dubai Marina lead rental transactions. Regardless of the growing variety of tenants opting to purchase or renew their contracts, rental costs proceed to rise as a consequence of sustained demand, with many areas witnessing double-digit will increase in common rents.
Outlook: A Promising Future for Dubai Actual Property
Because the UAE financial system is projected to develop by 3.9% in 2024 and speed up to six.2% in 2025, Dubai’s actual property market is well-positioned for continued enlargement. Authorities initiatives to diversify the financial system, significantly in vital sectors corresponding to know-how, healthcare, and inexperienced power, are anticipated to drive additional demand throughout residential and business markets.