Dubai Real Estate: A Market in Transition
The Dubai real estate market is entering a new phase of stability. Instead of launching new projects, developers are focusing on delivering existing ones. This year, developers are set to complete 42,241 units, including 31,341 apartments, 9,909 villas and townhouses, and 991 commercial properties. So far in 2024, 13,815 units have been completed, consisting of 11,035 apartments, 2,562 villas and townhouses, and 218 commercial properties.
Steady Progress and Increased Stock
In 2023, a total of 35,160 properties were finished, encompassing 28,650 apartments, 5,187 villas and townhouses, and 1,323 commercial properties. This brought Dubai’s residential stock to 719,000 units by the end of the year. With ongoing deliveries, the residential stock is expected to surpass 760,000 units by the end of 2024, helping to balance supply and demand.
Shifts in Market Dynamics
Despite signs of stabilization, sales transactions have started to decline in Q2 2024. The first half of the year saw 80,118 properties sold, valued at Dh233.1 billion. In Q2 alone, 43,612 land and properties were sold, totaling Dh124.6 billion—a 44.1% increase compared to Q2 2023. This included 33,704 apartments, 5,887 villas, 2,891 plots of land, and 1,130 commercial units.
Mortgage transactions also rose by 6.8% compared to Q2 2023, with a value of Dh44.3 billion—up 34.8%. However, there was a significant drop in overall land and property transactions, with 12,152 transactions worth Dh33.9 billion, down 62.5% from Q2 2023.
Key Players and Rising Stars
In 2023, a total of 35,160 properties were finished, encompassing 28,650 apartments, 5,187 villas and townhouses, and 1,323 commercial properties. This brought Dubai’s residential stock to 719,000 units by the end of the year. With ongoing deliveries, the residential stock is expected to surpass 760,000 units by the end of 2024, helping to balance supply and demand.
Driving Factors Behind Market Growth
A Dubai-based broker, recently reached a total sales value of Dh20 billion, underscoring the market’s dynamism. The UAE’s economy is projected to grow by 5.7%, drawing global attention. High-net-worth individuals continue to be attracted to Dubai, with the sale of homes priced above US$10 million increasing by 19% in Q1 2024
Innovations in Property Development
Developers are focusing on creating properties with extensive amenities to meet global trends. Marquis Developers, for example, is committed to delivering spacious, family-oriented residences. Their strategic locations and favorable payment plans have attracted buyers and brokers, even without extensive marketing efforts. The successful delivery of their Marquis 2020 project during the COVID-19 pandemic showcased their resilience and earned them industry recognition.
Conclusion
Dubai real estate market is stabilizing, with a clear focus on delivering existing projects and meeting the evolving needs of residents and investors. As the market matures, it continues to attract global attention and investment, promising a bright future for the emirate’s real estate sector.