According to Primo Capital Experts, the Dubai real estate market saw record activity with almost 35,300 transactions in Q2 (April to June).
The UAE real estate company has published a thorough study for Q2 2024, highlighting significant market trends and strong growth in the UAE’s real estate market.
As well as an increase in transaction volume by more than 20%, the average value of residential real estate in the emirate increased by 20.7%.
Dubai real estate growth
Primo Capital has recognized important indicators and influential breakthroughs affecting the sector based on its results as the region navigates varying economic conditions in all unit categories.
Compared to Q2 2023, a number of categories witnessed faster increases in Q2 2024:
- Residential transaction volumes increased by 20.5% year-on-year
- Average residential prices in Dubai rose by 20.7% year-on-year
- Commercial rents in Dubai surged by 17.1% quarter-on-quarter
- Industrial rents in Dubai increased by 14.3% year-on-year
- Average retail rents in Abu Dhabi grew by 14.7% year-on-year
Residential real estate
The residential market of Dubai witnessed unheard-of levels of activity in the 2nd quarter of 2024, with overall transaction volumes striking an all-time high of 35,310 transactions—a considerable 20.5% rise yoy.
The substantial 23.9% increase in off plan property transactions and a noticeable 15.2% increase in secondary market transactions were the main drivers behind this surge.
This trend in UAE properties underscores the enduring confidence among prospective buyers and caters to solid demand in the industry.
The rising craze of property prices is signifying a dynamic market sentiment. The average cost of a home in Dubai increased by 20.7% yoy, with rises of 20.4% and 22.1% for flats and villas, respectively.
Despite broader economic shifts, this acceleration confirms that Dubai remains a top destination for real estate investment worldwide.
The average cost of a villa in Abu Dhabi grew by 2.3% yoy, while the average price of an apartment rose by 4.3%, signifying continuous expansion in the residential sector of the emirate.
Commercial and industrial real estate
In Dubai, the commercial real estate market has indicated remarkable performance, with average rents rising by 22.2% yearly and 17.1% quarterly.
This advancement happened because companies and businesses required expansion in the UAE’s booming economy.
Moreover, the conditions for warehouses and storage rooms to spread and deliver goods in Dubai grew annual rental rates by up to 14.3% in the industrial and logistics sectors.
Hospitality and retail real estate
The hospitality industry in the UAE resumed doing well despite high visitor rates. An annual growth of 0.9% was observed in average occupancy rates, showing the sector’s strength and adaptability.
The substantial increases in retail rental rates that Dubai and Abu Dhabi noticed in the year preceding Q1 2024—average rentals rising by 10.5% and 14.7%, respectively—demonstrate a supply-demand mismatch and improved commercial activity.
Also Read: Expert Tips for Successful Investment in UAE by My Off Plan Investment
Comparison to previous quarters
Real estate agents operating at Primo Capital have anticipated the continual development of UAE real estate based on elements including a substantial ROI, a strong economy, higher capital returns, and favorable policies of the UAE government.
Mohammad Zeaiter, Senior Property Advisor at Primo Capital, stated that leading developers in UAE have turned their focus from one fixed design to a customer-centric structure, allowing buyers to choose, change, and customize according to their tastes and preferences.
Moreover, Zeaiter said that the fertile grounds of the real estate market guarantee steady ROI and higher capital gain, which are more captivating to international investors than any other major metropolitan city, including New York, London, Singapore, and Hong Kong.
