Dubai to Set Record with Handover of 38,174 New Homes in 2024
Dubai is set to hand over 38,174 new homes in 2024.
Completions in H1 2024 included 6,939 apartments and 2,145 villas.
Notable completions: Creek Views 1 and 2 (1,221 apartments), Murooj Al Furjan West (161 villas), and Silver Springs 3 (258 villas).
91,718 apartments and 28,385 villas are under construction, with handovers by 2028.
10% of ongoing projects are in Jumeirah Village Circle and Business Bay each.
Palm Jumeirah apartment prices have surpassed the 2014 peak.
Dubai’s luxury prime market saw $10 million-plus home sales nearly double to $7.6 billion in 2023.
Villa capital values increased 33.4% annually; apartment valuations rose 23.4% annually.
Dubai recorded 7,921 mortgage transactions and 13,834 cash transactions in Q2 2024.
Residential rental values increased by 10.8% annually; the occupancy rate was 87.7% in H1 2024.
Dubai’s real estate market is experiencing unprecedented growth, with an estimated handover of 38,174 new homes set for 2024, according to a report from consultancy ValuStrat. This includes many apartment and villa completions in the first half of the year, which stood at 6,939 and 2,145 units, respectively.
Noteworthy apartment projects completed in Q2 included Creek Views 1 and 2, offering 1,221 units. Major villa completions featured Murroj Al Furjan West with 161 units and Silver Springs 3 in Damac Hills with 258 villas. Around 91,718 apartments and 28,385 villas are under construction in Dubai, with handovers projected by 2028. Key areas such as Jumeirah Village Circle and Business Bay house 10% each of these ongoing projects.
Haider Tuaima, Director and Head of Real Estate Research at ValuStrat, highlighted the robust demand in Dubai’s real estate market, evidenced by rising valuations and rents across various segments. This growth is further supported by UAE government initiatives like residency permits for retirees and remote workers, alongside the expansion of the 10-year golden visa programme. The UAE's economic diversification efforts continue to bolster the property market.
In 2023, Dubai’s luxury prime market saw sales of $10 million-plus homes nearly double to $7.6 billion, outperforming cities like London and New York. The increase in global wealth creation has significantly impacted the Dubai market, attracting affluent individuals seeking asset diversification amidst geopolitical volatility.
Dubai’s villa market demonstrated exceptional growth, with capital values rising 33.4% annually and 7.3% quarterly. Top-performing areas included Palm Jumeirah, Jumeirah Islands, Dubai Hills Estate, and Emirates Hills. Apartment valuations also saw significant gains, increasing by 23.4% annually and 5.4% quarterly. Palm Jumeirah notably surpassed its 2014 price peak, setting a new benchmark for the city’s apartment market.
In the second quarter of 2024, we recorded 7,921 mortgage transactions and 13,834 cash transactions for ready properties, amounting to Dh26 billion ($7.1 billion) and Dh35 billion, respectively. Off-plan property transactions grew substantially, with a 61.4% annual increase and a 19.1% quarterly rise, totalling Dh59.9 billion in investments. Leading off-plan locations included Jumeirah Village Circle, Business Bay, and Meydan One.
Residential rental values in Dubai grew by 2.7% quarterly and 10.8% annually, with villa rents averaging Dh408,200 annually and apartment rents reaching Dh89,100 on average. The average annual rent for different apartment sizes ranged from Dh59,000 for studios to Dh193,000 for three-bedroom units. Villa rents varied from Dh321,000 for three-bedrooms to Dh503,000 for five-bedrooms. Despite severe flooding in April due to record rainfalls, the prompt response from developers and authorities ensured minimal impact on property valuations.
Dubai’s real estate market is in a growth phase, with strong demand, rising property values, and increasing rental rates, indicating a thriving and resilient market.