According to W Capital, investors are prepared to spend about $33 billion on real estate in Dubai, setting the stage for a historic summer buying binge.
W Capital said real estate sales in the current summer season will rise by 15 to 20%, exceeding AED120bn ($32.7bn), compared to AED102bn ($27.8bn) in the same season of 2023.
If it hits the growth estimate, the sector will see sales nearly double the summer 2022 total, which reached about AED68bn ($18.5bn).
Record-Breaking Performance
The brokerage expects that the real estate market will continue strong performance while reaping the fruits of Dubai’s global leadership after recording historical sales exceeding AED400 billion ($109 billion) in 2023, and it is probable that this year’s sales will fall into the range of AED 450 billion ($122.5 billion) to AED 500 billion ($136.2 billion).
The market achieved record sales in the first five months of 2024 after it achieved a jump of 25.4% to reach AED186.87 billion ($50.9 billion), compared to AED148.96 billion ($40.6 billion) in the same period in 2023.
The company witnessed 65,890 sales transactions from Jan to May 2024, which corresponded to 50,592 sales transactions in the same period last year, a gain of 30.2%, according to data from the Dubai Land Department (DLD).
Unprecedented Growth
The Dubai real estate sector registered the highest monthly performance ever in terms of deals during May, with a worth of AED45.79bn ($12.5bn), a growth of 35.3% compared to about AED33.84bn ($9.2bn) in May 2023, and exceeding the latest record number of last November at AED42bn ($11.4bn).
Walid Al Zarooni, W Capital CEO, said: “Dubai real estate sector sales are heading to unprecedented levels during the summer season. The market has matured in recent years, so every summer season records higher sales than before“.
Favorable Conditions for Investment
He noted that this summer offers more favorable conditions that encourage liquidity into the real estate market, with clients, foreigners, and residents poised to acquire a residential unit close to shores and recreational areas for water sports due to the extreme summer heat.
Walid Al Zarooni revealed an increase in the number of real estate projects offered during the current year amid a strong desire from real estate developers to seize a bite of the high-demand cake.
Also Read: Dubai Real Estate Investments Start at Just $136 as Stake Joins Land Department Initiative
Dubai’s Competitive Edge
The CEO emphasized that the opportunity is still growing for real estate investments in Dubai, which currently exceeds the largest real estate markets and offers more profits for investors amid solid growth prospects that are better than many other investment supports that suffer from turmoil and uncertainty risks.
Dubai real estate is sturdy and robust, offering the best ROI compared to regional and some international markets.
