Dubai’s property market exhibited strong performance in the second quarter of 2024, with notable gains in the residential, office, and retail sectors, according to a recent ValuStrat real estate report for Q2 2024.
Villa prices experienced particularly strong growth, with capital values rising by 33.4 percent compared to the previous year.
Haider Tuaima, Director and Head of Real Estate Research at ValuStrat, stated: “The Dubai property market has displayed impressive growth and resilience in recent months. The ValuStrat Price Index for Residential Capital Values increased by 6.4 percent quarterly and 28.2 percent annually, reaching 178.2 points.”
“Despite severe flooding caused by record rainfalls in April, the swift and effective response from developers and authorities helped to control the damage, ensuring that market activity and property valuations remained strong in the subsequent months.”
The office sector also performed well, with the VPI for office capital values rising by 31.7 percent annually and 9.4 percent quarterly, reaching 212.5 points. This represents the highest quarterly increase in a decade.
In the retail sector, Emaar Properties reported 98 percent occupancy in their prime mall assets, while overall mall occupancy stood at 96 percent during the first quarter of 2024.
The hospitality sector also saw growth, with total international guests reaching 8.12 million as of May 2024, a 9.9 percent increase compared to the same period last year.
Hotel occupancy reached 81 percent, rising by 1.4 percent year-on-year.
Despite these positive indicators, Tuaima added, “The decline in transaction volumes calls for a closer examination of market dynamics as stakeholders navigate this evolving landscape.”
