Experts anticipate the Dubai real estate market will rise by 5% in 2024, marking another year of expansion. Rising property prices are expected in both Dubai and Abu Dhabi due to increased buyer demand, demonstrating the tenacity of the UAE’s real estate market. Analysts warn that overall dynamics might be impacted by a potential reversal in the luxury market in the second half of the year. Despite this, policies like allowing retirees and remote workers to live there and economic solid development keep investors optimistic. This introduction indeed lays the groundwork for examining the variables influencing the real estate market in the United Arab Emirates in the upcoming year.
Anticipated Consistent Price Increases
The average home price in Dubai is expected to increase by 5% to 7%, while residential prices across the UAE are expected to continue their upward trajectory.
In Abu Dhabi, 3% to 5% price increases are anticipated. Haider Tuaima, the Director and also Head of Real Estate Research at ValuStrat, highlighted the market’s strength in transaction volume and projected price growth over the following months.
Strategies For Sustainable Growth
Industry stakeholders are investigating sustainable practices to guarantee development and stability over the long term. This includes actions to mitigate the danger of an oversupply, improve market transparency, and encourage creativity in real estate development.
Market Sturdiness During Economic Expansion
Rising transaction volumes in Dubai and Abu Dhabi demonstrate the property market’s resilience in the face of these expectations. Along with general economic development, initiatives like granting residence permits to retired and distant workers have added to this resiliency.
Dubai’s Outstanding Realty Display
Dubai has shown outstanding achievement, particularly in terms of transactional growth and value appreciation.
In the first nine months of 2023, the city registered over 116,000 new property transactions valued at over Dh429.6 billion, indicating significant gains in both volume and value over prior periods.
Growing Interest And Demand
Abu Dhabi sees an expansion in land exchanges because of expanded requests from GCC and neighbourhood financial backers. The UAE’s phenomenal framework and promising monetary future have drawn in high-total assets from across the world, further filling the market’s extension.
A Favorable Outlook For The Economy
The UAE’s macroeconomic forecast is still optimistic, with growth rates of 3% in 2023 and 4% in 2024 predicted.
Important industries and sectors to watch out for include wholesale commerce, manufacturing, real estate, construction, financial services, and tourism.
Sustained Attention From Investors
Expected to rise as global economies recover and tourism resumes, investor interest is still high. It is projected that markets, including
● Latin America
● Canada would increase demand for the UAE’s property sector.
Emphasize Properties That Are Ready To Occupy
According to experts, there will likely always be a preference for ready-to-occupy houses over off-plan choices because of their quick rental potential and high rate of return on investment.
Diverse Landscape Of Supply And Demand
Although experts anticipate more units to hit the market, they think supply will not keep up with demand, keeping prices unchanged. In anticipation of sustained high demand, developers are preparing to supply thousands of units in Dubai and Abu Dhabi.
Dynamics Of Property Delivery
Even if more units are expected to hit the market, supply-demand dynamics will be significantly influenced by the speed of delivery. Strong demand and prompt delivery are necessary to preserve balance and avoid overstock situations.
The strong demand from a broad spectrum of buyers highlights the optimism surrounding Dubai’s real estate market. Several variables, including infrastructure development, economic expansion, and regulatory changes, influence investor attitudes and stimulate more investment inflows.
Notwithstanding the surge of new apartments and possible changes in the luxury sector, the Dubai real estate market is set to continue expanding in 2024. Intense economic circumstances and investor confidence highlight the property sector’s resilience in the United Arab Emirates.