The value of real estate sales in Dubai climbed 25.9% y-o-y in 1Q 2024 to AED 109.8 bn, according to Dubai-based real estate broker Springfield Properties’ latest market insights report (pdf). The growth in sales value came despite the total volume of property transactions in the emirate inching down 0.5% y-o-y, with some 37.1k transactions recorded during the quarter.

Off-plan properties accounted for over 19k transactions in 1Q 2024 – more than half of the units sold during the quarter — collectively pooling AED 50.4 bn, indicating sustained investor confidence in new developments in Dubai, according to the report. The secondary market, on the other hand, saw some 12.7k units traded at a combined value of AED 8.2 bn.

By neighborhood: Jumeirah Village Circle handed over the most units during the quarter (18k), followed by Business Bay (11.4k), Downtown Dubai (6.5k), and Dubai Hills Estate (6.4k). Jumeirah Bay Island dominated the largest market share, reeling in approximately AED 9.8k for every sqft sold, while Dubai Harbour had the second largest presence in the market, selling units for 4.1k per sqft.

Only up from here? The report forecasts a continued upsurge in Dubai’s real estate market, specifically in the ultra-luxury segment, driven by a projected 24.6% increase in high-net worth individuals in the emirate by 2025. Government plans to scrap the AED 1 mn minimum down payment required for golden visa eligibility linked to real estate is also expected to trigger investor interest in the market.

ICYMI- Luxury home sales in Dubai reached USD 1.73 bn in 1Q 2024, up 6% y-o-y on the back of heightened buyer interest from “international high-net-worth individuals vying for the city’s most expensive homes” and reduced supply.

The report also expects higher demand in emerging areas, with Dubai’s Real Estate Regulatory Authority’s calibration of a rent calculator reflecting open-market pricing dynamics expected to see rental rates rise and subsequently prompt tenants seeking better value rates to explore housing options in newer or developing communities.

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