The Dubai real estate market remains strong, though signs of a slowdown are becoming evident, as highlighted by Cushman & Wakefield Core in its Q2 2024 update. While Dubai’s market continues to perform well across various indicators, growth is slowing, particularly in the secondary residential market, which is gradually entering a stabilisation phase.
In Q2 2024, the number of properties handed over to buyers decreased significantly, though a rise is expected in the latter half of the year. Property prices in Dubai have now increased for 16 consecutive quarters, with a 21 per cent annual rise. Ultra-prime properties are also performing well, with over 300 homes sold for AED 20M ($5.4M) or more between April and June.
Off-plan transactions have sharply increased, with a 61 per cent spike, dominating over secondary market transactions, which grew by a moderate 5 per cent. This suggests that the off-plan market is more investor-driven.
Stabilisation signs include sellers struggling to match original prices, leading to slight discounts, and a decrease in the median residential listing price since Q3 2023. While city-wide sales prices continue to rise, with a 21 per cent year-on-year increase, affordable districts are experiencing sharp increases, impacting affordability.
Meanwhile, villa rents stabilised, rising 13 per cent year-on-year, while apartment rents jumped by 22 per cent, with tenants increasingly renewing leases due to rising costs.
