APIL properties logo

Dubai Housing Market 2024

What-is-Dubai's-Next-Big-Thing

The Dubai housing market is flourishing, with strong growth in Q1 2024. The sales and rental costs have increased by roughly 21% annually. High demand, economic success, population size increasing, and expansion of infrastructure like metro, sewer line, and new Maktoum airport expansion contribute to Dubai housing market’s strong performance. 

Group 1101
Group 1000001956

Is the Dubai housing market booming?

Dubai’s property market is evidently expanding rapidly. This is due to strong demand and a thriving economy. The Dubai housing market performed well in Q1 2024.  The sale prices and rentals in Dubai increase by almost 21% each year. This is in reference to the Q1 2024 UAE Real Estate Market Overview report of  JLL MENA. Additionally, Reidin generated numbers that show a similar pattern in their residential property price report 2024. Dubai’s all-residential property price index (RPPI) increased by 20.71% year on year in Q1 2024. 

4
Dubai's-Next Big-Thing

Driving Factors for Economic Success in Dubai Housing Market

Even though Dubai has strong rental yields, property prices frequently fluctuate. We can say that the market is volatile. However, seeing the Dubai housing market’s resilience over

Dubai’s gross rental yields in April 2024 averaged 7.24%. This shows consistency with the previous year’s performance. Below is a breakdown of the various types of properties:

In comparison to Dubai, rental yields are lower in other emirates and cities:

  • Ras al Khaimah – In Q1 2024, yields averaged 4.84%
circle Design
Design

Dubai’s World Class Infrastructure

Dubai's reputation as having one of the best infrastructure is well earned. Its modern amenities and efficient transit networks are unmatched, making it a popular destination for real estate investors. 

circle Design
Design

Growing City Population

Dubai's growing population has a significant effect on the housing market. The residential property market is struggling to keep up with the steady stream of foreign workers, professionals, and investors. Hence, resulting in strong demand for housing. 

In 2023, roughly 92,000 square meters of gross leasable area (GLA) were delivered in Dubai. This primarily consists of Grade A specifications, bringing

Dubai’s unique geographic location serves as a global crossroads. It facilitates trade, commerce, and connectivity

  • 6 hours and 30 minutes from London 
  • 12 hours from New York
  • 6 hours and 40 minutes from Bangkok
  • 17 hours from Auckland

Dubai provides significant capital appreciation which makes it an ideal place for real estate investment. With some of the world’s highest rental yields, 

circle Design
Design

Dubai Housing Market Trend

In the first quarter of 2024, Dubai's residential sector had strong growth. Both sale and rental prices have been increasing by almost 21% annually.

How is the housing market cycle in Dubai?

Dubais-Resilient-Real-Estate-Market
Dubais-Resilient-Real-Estate-Market

To understand the trajectory of Dubai’s housing market, an assessment of its historical cycles is necessary. The first property cycle lasted around six years and saw strong price increases but ended in a high in 2008. This cycle established Dubai as a real estate development hotspot, drawing investors to capitalise on the booming market. This was also the time of the Dubai property market crash. However, the advent of the global financial crisis rippled over the world which also affected Dubai’s real estate market. To mitigate the impact, the government implemented preventive measures and strategic reforms. Despite the downturn, Dubai’s unwavering tenacity allowed it to recover quickly. Thus, it ushered in a new period of growth that peaked in 2014.Dubai’s residential market is currently in its third property cycle. It has seen a spectacular price recovery since the pandemic. 

What is the Residential Price Index in Dubai

Group 1000001956 1

The RSPI data for Dubai by the Dubai Land Department shows a constant increase trend in real estate prices. The large increase of 17.10% over the last nine months from Q3 2022. It also has a 4.14% increase quarter over quarter.

4 1

Data from the Residential Rental Performance Index (RRPI) in Dubai as of the third quarter (Q3) of 2022

    • The index is set to a base value of 1 for the year 2013. On a yearly basis, the index value is 0.884. This indicates that rental prices have decreased by 11.6% compared to 2013.

    • The quarterly index value is 0.988 which shows a decrease of 1.2% compared to the base year. The monthly index value is 0.996 which also indicates a slight decrease of 0.4% compared to 2013.

    • However, over the past 9 months, rental prices have increased by 5.67%. From the previous quarter to the current quarter, there has been a 2.17% increase in rental prices.
4 2

Data from the Residential Sales Price Index in Dubai as of the third quarter (Q3) of 2022

  • The index is set to a base value of 1 for the year 2012. On a yearly basis, the index value is 1.193. This indicates that property prices have increased by 19.3% compared to 2012.
  • Moreover, the quarterly index value is 1.383, showing an increase of 38.3% compared to the base year. The monthly index also indicates an increase of 38.7% compared to 2012.
Dubai’s-Unparalleled-Achievements
Group 1000001956 2

Dubai’s Property Transaction continues to grow significantly

Dubai’s demand continues to rise significantly. In 2023, registered sales transactions recorded 133,134 deals. 

4 2
4 1

What are the popular communities to buy apartment in Dubai?

  • Dubai Marina
  • Downtown Dubai
  • Jumeirah Village Circle
  • Business Bay
  • Jumeirah Lake Towers (JLT)
  • Palm Jumeirah
Pricing-Dynamics

What are the popular communities to buy villas in Dubai?

  • Dubai Hills Estate
  • Palm Jumeirah
  • Arabian Ranches
  • Damac Hills
  • Emirates Hills
Rental-Market-Trends

Newly Launched Villa Communities in Dubai

  • Riverside by DAMAC
  • South Bay by Dubai South
  • EMAAR South
  • Oasis by EMAAR
  • DAMAC Lagoons
Supply-and-Transactions

FAQs

No, Dubai real estate prices have been rising. The recent data indicates a healthy recovery and consistent growth in both sales and rental rates.

Dubai's property prices are competitive when compared to other worldwide cities. It has less expensive land costs, a large supply of new developments, and beneficial government regulations that encourage investment.

Yes. Now is an excellent time to buy property in Dubai. This is due to its solid housing market, rising property values, and competitive rental yields.

The Dubai housing market is strong and growing. It demonstrates increased sales transactions, rising prices, and high demand. This growth is driven by economic growth and foreign investment.

Yes, Dubai is an ideal place to buy property. You can expect high rental returns, tax-free investment opportunities, and a solid regulatory framework. All these benefits create a good recipe that encourages property ownership.

Yes, purchasing a flat in Dubai may be a profitable investment. The Dubai property market forecast expects that Dubai will experience constant growth.

Dubai draws in wealthy people primarily because of its investment opportunities. They also account for affluent lifestyle, tax-free environment, strategic position, and high-quality properties.

Yes, foreigners can buy residences in Dubai's designated freehold neighbourhoods. You can access the same ownership rights as UAE citizens.

No, Dubai does not provide citizenship to property buyers. Foreign investors, however, can get long-term resident visas like the 10-year Golden Visa. Plus, if they meet certain investment requirements, they may be able to obtain citizenship.

Most Trending Projects in Dubai

Address Residences

Address Residences

AED 2.4 M

Visit Now
Creek Waters

Creek Waters

AED 1.6 M

Visit Now
Oasis by Emaar

Oasis by Emaar

AED 8,1 M

Visit Now
Club Drive dubai

Club Drive

AED 1.5 M

Visit Now
Creek Gate

Creek Gate

AED 3.8 M

Visit Now
AEON by Emaar

AEON by Emaar

AED 1.71 M

Visit Now
farm garden

Farm Gardens 2

AED 5.1 M

Visit Now
bayz 101

Bayz 101 by Danube

AED 5.09 M

Visit Now
cavali villas

Cavalli Villas

AED 1.15M

Visit Now
Danube Sports apartment for sale

Danube Sportz

AED 590 k

Visit Now
Picture of Adil Adil

Adil Adil

Share This Post

Found this information useful? Share it with your friends and family!

Facebook
X
LinkedIn
Translate »

Compare Listings