Dubai Real Estate Snapshot: July 2024
Overview
Dubai’s real estate market continues to show remarkable resilience and growth in July 2024 (from June 2024’s amazing performance), with apartments and villas experiencing significant price increases. This article will explore the current trends in Dubai’s real estate market in July 2024.
Current Market Trends
Price Growth
In July 2024, the Dubai real estate market saw the following trends:
- Apartments: Prices increased by 2% month-on-month, maintaining an impressive annual growth rate of 23.8% since January 2024. This trend indicates a strong demand for apartment living in mature communities such as Discovery Gardens, The Greens, Palm Jumeirah and The Views (in The Greens). These are established communities built by the top 2 developers in the city (Emaar and Nakheel) and go to show that maintaining communities is as important as building them.
- Villas: Villa prices rose by 2.5% month-on-month, with an annual growth rate of 33.4%. The demand for villas reflects buyer preferences shifting toward larger living spaces, especially post-pandemic. Areas such as Palm Jumeirah, Jumeirah Islands, Dubai Hills Estate and Emirates Hills saw the biggest spikes in capital gains. This shows that luxury communities still command top dollar and even though some of these communities are now almost 17-18 years old, they are going strong because the master developers (in this case Emaar and Nakheel) maintain their communities to the highest standards.
Off-Plan vs. Ready Properties
- Off-Plan Properties: Off-plan registrations surged by 59.6% annually and 40.6% monthly, accounting for a record 68.5% of all sales. This shift indicates a growing confidence among investors in new developments. This shift towards off-plan sales suggests that buyers are looking for value and long-term investment opportunities. As a corollary, this also indicates that bank mortgage rates are not as attractive to end-users and they’d rather pay developers monthly installments than the banks at 3-5% interest rates for 25 years. A great place to find the best mortgages for properties in Lenddoo which can be found on each listing on https://viewit.ae/.
- Ready Properties: The volume of ready home transactions grew by 27.2% annually and increased by 23.7% compared to the previous month. This resurgence signals a recovery in buyer interest in completed properties. The pie chart also indicates that while mature communities such as the ones mentioned above are doing well, prices have peaked and buyers are looking at more affordable options and are willing to wait to move-in to their new homes.
Price Changes Overview
Here’s a summary of the price changes for residential properties, villas, and apartments:
| Property Type | Price Change (Annual) | Weighted Average Price (AED) |
|---|---|---|
| Residential | 28.5% | 2,794,608 |
| Villas | 33.4% | 1,584,418 |
| Apartments | 23.8% | 10,308,384 |
Weighted Average: A weighted average is an average in which each quantity to be averaged is assigned a weight and these weights determine the relative importance of each quantity on average.
Capital Values and Market Cycles
The annual growth in capital values indicates a robust recovery in the Dubai real estate market. Historically, Dubai has experienced cycles of rapid growth followed by stabilization. The current cycle appears to favor high-end properties, particularly villas, as buyers seek more spacious living options. The upcycle continues even though the hot summer has hit and many folks have left for summer holidays. Off-plan sales at almost 70% indicate that people believe in the Dubai of tomorrow and are going to continue to invest and live in the Emirate for years to come.
Potential Market Correction
Despite the strong growth, experts have noted the possibility of a slight correction in the market. This could be attributed to various factors, including potential overvaluation and over saturation in certain segments and a natural cooling period following rapid price increases. As the market stabilizes, it may lead to a more balanced environment for buyers and sellers alike.
Top Developers
In July 2024, leading developers included:
- Emaar: 20.3%
- Damac: 7.2%
- Danube: 5.2%
- Nakheel: 4.8%
These developers are pivotal in shaping the market, providing a mix of luxury and affordable housing options.
Top Sales Locations
Off-Plan Sales
- Dubai Hills Estate: 10.8%
- Jumeirah Village Circle: 9.3%
- Business Bay: 7.4%
- Dubai Creek Harbour: 5.9%
- Dubai South: 4.3%
Ready Home Sales
- Jumeirah Village Circle: 7.9%
- Dubai Marina: 6.2%
- Business Bay: 5.9%
- Downtown Dubai: 4.7%
- Jumeirah Lake Towers: 3.5%
Conclusion
The Dubai real estate market in July 2024 showcases significant growth, with both apartments and villas recording impressive price increases. The strong demand for off-plan properties, along with the resurgence of ready home transactions, highlights the market’s dynamism. However, potential corrections may occur as the market stabilizes, providing a more balanced environment for buyers and sellers. As Dubai continues to attract global interest, the real estate sector is poised for further expansion and innovation. Whether you are considering an apartment or a villa, off-plan or ready property, the opportunities in Dubai’s real estate market are abundant. As always, keep checking in on https://viewit.ae/ for the latest news and views on the Dubai Real Estate market!
Citations:
[1] https://ppl-ai-file-upload.s3.amazonaws.com/web/direct-files/23087013/3df90d5d-06c3-46ed-9f39-ae93c0b804e0/VPI_Dubai_Residential-July-2024-Report.pdf
[2] https://ppl-ai-file-upload.s3.amazonaws.com/web/direct-files/23087013/73238277-399d-42d0-ab10-d17efec1ae47/PHOTO-2024-09-13-07-12-25.PDF
[3] https://ppl-ai-file-upload.s3.amazonaws.com/web/direct-files/23087013/a562fd67-b390-4ab8-a620-7a787a2cf81b/VPI_Dubai_Residential_Values_-_June_2024-1.pdf
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