Rental Market Sees a 20.8% Surge
PC: Arabian Business
The real estate market in Dubai showed resilience and growth in November 2024, with average annual rent prices increasing by 20.8% to AED 90,288 ($24,581.74). The rental market experienced a minor annual decrease in transaction volume but showed overall stability due to high demand for quality rental properties. Rental transactions amounted to a total value of AED3.53 billion, which indicates the sustained attraction of Dubai as a global destination for residents and investors.
Sales Transactions and Market Drivers
Springfield Properties reported total sales transaction values of AED 30.53 billion across 12,543 transactions in November, underscoring continued investor confidence despite seasonal recalibration. Off-plan properties and apartments emerged as the primary drivers of activity, reflecting robust demand for diverse housing options in Dubai’s dynamic property sector.
Apartments were in the forefront of 10,552 transactions worth AED 19.27 billion, while off-plan sales recorded 7,537 transactions amounting to AED 15.84 billion that reinstated buyer confidence in new projects.
According to Farooq Syed, the chief executive officer at Springfield Properties, “The performance of November proves that Dubai will indeed manage to absorb changes occurring within the worldwide sphere. Consistent apartment demand coupled with strong off-plan activities clearly prove that Dubai would definitely hold one of the prominent places in the entire globe concerning the property world.
New locations such as Dubai South and Dubai Islands began to attract buyers and tenants due to strategic location and competitive pricing. Luxury hotspots Business Bay, Downtown Dubai, and Palm Jumeirah continued to attract high-net-worth individuals.
Mid-income areas like Jumeirah Village Circle also maintained steady demand, with an average price of AED 1.05 million, showcasing the market’s appeal across various segments. “Dubai’s ability to balance luxury offerings with affordable housing ensures continued growth and resilience,” Syed added.
Vision 2033 and Urban Development
The Dubai Real Estate Sector Strategy 2033 and the 2040 Urban Master Plan are strategic initiatives, which form the underpinnings of sustained growth of Dubai. The city will witness an increase in the population from 3.8 million to 7.8 million by 2040, thus the demand for diverse housing solutions is estimated to grow further.
The 2033 strategy envisions a set of ambitious targets including doubling the real estate contribution to GDP until AED 73 billion; raising the rates of home ownership until reaching 33%; expanding portfolios twenty-fold to AED 20 billion, increasing transactions through 70% increase; and elevating market value until AED 1 trillion.
As of November 2024, the total number of real estate transactions in Dubai has reached 188,000, with a total value of AED 625 billion ($170.2 billion). The figures are up 38% in terms of transaction volume and 23% in value compared to 2023. Property sales alone surpassed AED 437 billion for the first time, marking a 33% growth year-over-year.
As 2024 nears its end, Dubai’s real estate market remains a global benchmark for growth and innovation. Backed by strategic developments, population expansion, and investor confidence, the sector is poised for sustained success in the years to come.
