According to the Asteco Q1 2024 real estate file, 10,000 new residences entered the Dubai property region in Q1.
Asteco says that Dubai’s market stays resilient and suggests vital signs of progress in 2024.
Dubai’s powerful economic performance and dedication to enhancing the rate of life and drawing skilled professionals will resume to attract a significant number of emigrants.
Dubai real estate supply
During Q1 2024, the Dubai market produced over 10,000 residential units, incorporating 7,300 apartments and 2,750 villas.
This means a significant increase resembling the previous quarter and develops a promising revolution for the year ahead.
Thirty thousand units are also expected to enter the market by 2024.
Rental rate growth has been mixed over the past three months. While average apartment and villa rental rates have remained mostly unchanged, rental rate growth has varied across different communities.
Annual growth rates have slowed to single digits, with villas at 6 percent and apartments following closely at 10%.
Dubai Land Department (DLD) data indicates a 4% decline in the number of new contracts issued in Q1 2024 compared to the previous quarter and the corresponding period last year.
On the other hand, renewals grew by 5% quarter-on-quarter and 12% year-on-year, with considerable tenants assenting to above-average rental hikes.
Like the leasing market, average sales prices for apartments and villas remained relatively stable throughout Q1 2024, with some variations observed at the community level.
Annual increase rates stood at 6% for flats and 8% for villas.
The new year noticed a gradual change in buyer affection, with apartments in specified communities such as JVC, Dubai Marina, Business Bay, and Downtown Dubai acquiring increased traction.
Apartments typically yield higher Return on Investment (ROI), attributed to lower initial investment costs, greater rental demand, higher occupancy rates, and shorter vacancy periods. The off-plan market remained prominent regarding both the value and volume of transactions.
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End Words
In summary, the Dubai real estate market experienced a sizable influx of new deliveries in Q1 2024 with over 10,000 residential units getting into the marketplace. While rental costs have continued to boom, the tempo of increase has slowed to unmarried digits yearly.
The sales market has remained distinctly stable, with apartments in certain communities gaining recognition among buyers because of their better capability of return on investment.
Despite some fluctuations, the overall market outlook remains nice, reinforced via Dubai’s sturdy economic performance and efforts to enhance its livability and appeal to skilled experts. As the 12 months progresses, the resilience of Dubai’s real property region will stay carefully watched by investors and enterprise stakeholders alike.
