Dubai Real Estate Sales: Growth Of Sales Ranking in Q1 2024

Dubai real estate sales

Identifies areas with the biggest growth in Dubai real estate sales and rentals

Dubai real estate sales and ranting activities in Dubai townhouse, apartment, and villas markets for the first 3 months of 2024 were examined in the Q1 market summary study released by Espace Real Estate and published by MENAFN International News, as the data shows that residential real estate values in Dubai have increased by 26% this year.

Based on current trends, the market overview provides important insights into the areas of the emirate that are best for buying, Dubai real estate sales, and renting. After 5 years of phenomenal growth, data indicates that the secondary market is leveling out, especially for properties priced at AED 10 million and above, to a more sustainable activity level.

More renters are switching to homeownership even as rental costs keep rising, and mortgage products get more accessible in Dubai, United Arab Emirates: after the examination of Dubai real estate sales and rental activities in Dubai’s townhouse, apartment, and villa markets for the first 3 months of 2024 in their Q1 market summary report.

The research, which tracks 30 communities and focuses solely on the residential market, reveals that Dubai’s real estate market is off to a great start this year.

Q1 Essential Information To Know About Dubai Real Estate Sales:

The market for Sales:

There is hope for the remainder of 2024 given the notable increases in both the off-plan and secondary markets’ transaction volume (+22%) and total sales transaction value (+26%) from last year.

Notwithstanding the robust 12-month growth rate, there is indication that the secondary market is ultimately stabilizing at a more pragmatic and enduring activity level, as demonstrated by the 11% decline in transaction values from the preceding quarter (Q4 2023). In comparison to Q4 2023 Dubai real estate sales, which were extremely strong, fewer homes transacted over the AED 10 million price range on a quarter-over-quarter (QoQ) basis. On the other hand, the price range below AED 10 M is still seeing a rise in transaction volume every quarter.

Even if the activity of Dubai real estate sales in general rises, there are indications that the secondary market will not continue to grow at the same rate, especially in the price category of AED 10 million and above. According to data and statistics from quarter to quarter, the secondary market will continue to operate and stabilize in the lower-priced category but is likely to see more moderate market growth compared to the path of the sharp rise we have seen over the past five years. In other words, the highest price in the market is less important to buyers than the lowest price.

Dubai real estate sales

The average price of the developers with numbers analytics

The average price has increased in the 30 communities the research follows, except Emaar Beachfront and Jumeirah Golf Estates. The Lakes (44%) Jumeirah Park (44%), and Jumeirah Islands (49%), were the neighborhoods with the highest average Dubai real estate sales price in Q1.

Is Jumeirah Golf Estates becoming less valuable or staying the same? It’s crucial to remember that the value of Jumeirah Golf Estates has not decreased. The lower price point townhouse sector has seen a spike in transaction activity; in Q1 2024, it accounted for 44% of all JGE transactions, up from 13% in 2023, the neighborhood has seen an increase in townhouse sales.

Therefore, we can observe the 44% increase in the sale of properties in Dubai real estate sales in the value of Jumeirah Park, which narrowed the price gap compared to similar local communities such as The Meadows, which were 20% more expensive than Jumeirah Park in the first quarter of 2023 but only 11% in the first quarter of 2024.

According to report data, price reductions have decreased by 8% from the previous year, indicating that sellers are still feeling optimistic, and that price ambition levels are still strong.

In contrast to Q1 2023, Russia no longer ranks in the top 10 according to buyer nationalities, with the United Kingdom and India continuing to top the list.

Currently, Lebanon is ranked third among buyer nationalities, followed by the Netherlands and Canada at fourth and fifth, respectively.

The impact of new projects in established communities on the secondary market Dubai real estate sales at Palm Jumeirah, for instance, the secondary villa/townhouse market has seen a 53% decline in transactions, even though average prices have increased by +14%. This is because more people are choosing to get off-plan rather than older constructions as more developers in the area put their brand-new collections of villas and townhouses on the market. In the upcoming months, it is predictable that the secondary market will see somewhat more sustainable activity as long as the off-plan market keeps providing fantastic possibilities.

What is the progress in the rental market?

Average rental rates kept rising in every monitored community, with notable annual increases in Palm Jumeirah’s villa/townhouses (+63% YoY) and apartments on Blue Waters Island (+64%). Rent costs have also increased in popular neighborhoods like The Meadows (+35%), Dubai Hills (+36%), and Jumeirah Islands (+29%), where villas and townhouses are common.

On the other hand, fewer new rental agreements and renewals and fewer transactions have occurred in most communities because of the extremely high rental prices and the more inexpensive mortgage market, noticing a trend of tenants becoming homeowners over the past 12 months. When people decide whether to extend their lease, they weigh the outrageous rent expense against the ownership cost.

It is now considerably simpler for consumers to purchase a property because of decreased mortgage rates and more lenient immigration laws. Significant increases in mortgage leads and buyer registrations in Dubai real estate sales over the past quarter are notable due to the region’s ongoing population growth and the influx of new residents.

Future Prognostications

According to these analyses and numbers, real estate experts see increasing property values in more reasonably priced neighborhoods. This might make the difference with more established but expensive neighborhoods smaller. However, he emphasizes how favorable mortgage rank and falling interest rates are advantageous because they increase the likelihood of owning a home.

Dubai’s real estate market is changing, these days, and the affordability of buying a property in Dubai plays a big role in Dubai real estate sales and rental activity. In real estate in Dubai, new opportunities are created for investors and home buyers through established and new communities that change the landscape.

Request Dubai Real Estate Sales: Growth Of Sales Ranking in Q1 2024 Price

First Name*
Last Name*