The demand for properties and real estate in the United Arab Emirates and especially in Dubai remained at a very high level in the second quarter of 2024 with more than 35 300 transactions were registered, data of Primo Capital Experts. According to the most recent report, property prices were up by 21%, together with a 20. 5% YoY growth in the volumes of residentials’ transactions.
The detailed study undertaken by Primo Capital for second quarter of the year 2024 has made it quite clear that there are quite a few trends afoot in the UAE market will be very healthy growth in most of the real estate segments. Some of the interesting things that it has pointed out include the fact that while the general sentiment in the market might be changing, the average value of residential properties in Dubai has been seen to have risen by 20. 7%.
Key Market Indicators:
Residential Market:
Among all the transactions recorded throughout the emirate last year, more than 35,310 transactions in Residential property revealed a YoY growth of 20. 5%. This, was performed through a 23. 9 % increase in off-plan properties sales and a 15. 2 % increase in secondary markets sales. The average price of houses in Dubai has increased by 20. 7 % Flats and Villas felt the pinch and recorded a 20. 4% and 22. 1% increase respectively.
Commercial and Industrial Real Estate:
The commercial office space market of Dubai expressed consistent performance on average rent level; it has risen to 22. 2% of annually and 17. 1% of quarterly. The industrial sector also posted a 14. 3% year on the net increase in rental rates with warehouses and storage facilities’ increasing demand playing to the sector’s advantage.
Retail and Hospitality Sectors:
Year on year rent of retails in Abu Dhabi and Dubai rose by 14. 7% and 10. 5% respectively due to increased commercial activity and vacancy rates imbalance. The occupied space in the hospitality sector was retained, showed by annual increase in average occupancy by 0. 9 percent.
Other experts, including Mohammad Zeaiter from the position of Senior Property Advisor in Primo Capital shared the focus on the new approach in construction and new releases by leading developers in the UAE – higher amount of choices for buyers in terms of customization. He also said that the roi of the real estate business in Dubai is considerably great and more capital appreciation can be derived compared to major cities such as New York, London, Singapore, and Hong Kong that investors find Dubai more appealing.
Mr. Zeaiter generous on the growth of UAE real estate market because of the economic strength, government support, big returns on investment. Thus, the interaction persists in maintaining Dubai as one of the leading global markets for real estate investment.
