The Dubai real estate market may see 25,000 new homes by year-end, according to the Asteco Q2 2024 real estate report.
The UAE real estate expert noted Dubai’s strong economy and attractive lifestyle as key draws for expatriates.
In Q2 2024, new supply delivery slowed compared to Q1 2024, with around 6,750 residential units completed. Project launches remained strong, including low-rise buildings, skyscrapers, and large master-planned communities.
Apartment and villa rental rates increased by 3 per cent and 2 per cent quarterly, respectively, while annual rental growth slowed to single digits, with apartments up 8 per cent and villas 4 per cent. This is due to the revised RERA rental index, which allows landlords to increase rents more significantly upon lease renewal.
The office rental market thrived, particularly for Grade A space, driven by strong demand and limited supply.
The sales market in Dubai remained strong, driven by ongoing project launches boosting off-plan transactions. Q2 2024 saw a steady 2 per cent growth in average sales prices, with areas like Jumeirah Village and Business Bay experiencing above-average growth. This is due to rising demand and an increase in both off-plan launches and newly completed developments, which often offer superior quality compared to earlier projects.
The off-plan property market maintained its momentum, with both local and international investors keen on new units, attracted by the promise of strong returns in a tax-friendly environment. Some lenders introduced enhanced financing options for off-plan properties, allowing buyers to secure up to 10 per cent more funding during construction. This additional funding is typically available for projects with at least 50 per cent construction progress, ensuring risk mitigation for the lender. This move stimulates the off-plan market and broadens accessibility for potential buyers.
