The housing property market in Dubai is expected to touch new heights in 2024. The professionals who are studying the property market are saying that there is going to be a huge rise in the price of properties in good locations.
The growth of villas and townhouses is expected to see more increase in their prices because of the huge demand from the rich people of other countries. This situation is also good for the growth of a city like Dubai.
Dubai’s real estate market is on an upward growth. According to the top brokers working in the Dubai property market, the price of property types like apartments is continuously rising but villas are also catching up to it. Villas have also been one of the top players in the market, with their average pricing per square foot is going up by AED 2,000 for the first time in a decade.
This new situation shows that villa prices have doubled after the covid period which was surpassing because previous market highs for the costly properties were not that high in 2014.
Looking ahead, capital gains in the villa segment are expected to keep climbing. Although these gains may not be more than the record of 34.1% increase seen in 2022 which was the very high in a decade, some professionals still predict substantial gains. A data from April 2024 supports this situation of price rise of villas, showing a 2.4% increase month-on-month and an eye catching 31.2% rise year-on-year capital gains for villas.
There are some reasons for this robust growth of Dubai’s property market for the past one year. The coming of rich people, attractive rules made by the government, and a fantastic environment for running companies and commercial activities have driven demand for luxury properties in prime locations. Another thing to see is that the low interest rates are likely to remain in 2024 also which will reduce the borrowing costs and attract more investors to enter the market.
In April, the Price Index given on a property website reached 170.8 points which also showed that there was a 26.1 percent increase over the year, with a monthly rise of 2 percent. Villas scored 216 points, while apartments reached 141.4 points, based on a baseline of 100 points which was set in January 2021. With the launch of new villas in Damac Riverside the market will see more growth.
Apartment prices have grown by 1.6% which is very high with an annual growth of around 21.3 percent. The areas with the high apartment capital gains from the last one year include Discovery Gardens (33.4%), The Greens (31.4%), Palm Jumeirah (29.9%), The Views (27.1%), and Jumeirah Village Circle. New launches of properties in Binghatti One and Sobha Skyscape Avenue are going to increase the demand for apartments.
Villas are doing good in the market with a 2.4 percent increase from the month of March and a 31.2 percent rise from the last one year. Some prime locations that saw good growth are Palm Jumeirah at 40.1 percent, Jumeirah Island at 39.5 percent, Dubai Hills Estate at 36.2 percent, Green Community West with 31.4 percent, and Emirates Hills at 31.1 percent.
Off-plan property registrations saw a nice annual increase of 76.4% even though there was a 9.4% monthly decline. Transactions for ready-to-move properties also increased by 9.5% since last year but saw a drop by 24.2% since March, which includes only 30% of monthly sales of housing properties. There were around 27 transactions for ready-to-move properties which are priced more than AED 30 million in popular locations like Palm Jumeirah, Arabian Ranches, Jumeirah Bay Island, Emirates Hills, and Downtown Dubai.
Dubai’s property market is thriving very well which is also good for the market goals set by the Emirates. The government is focused on improving Dubai’s status as a global commercial and tourism hub. It means that the government knows that a successful real estate market is key to attracting foreign investment and professional workers. As Dubai continues to develop, the housing property market is expected to grow further, with professionals from companies like Dubai Housing predicting a fantastic growth until 2024.
The villas and apartments that are launched in 2024 are also seeing a huge price rise and this means that the sales of housing properties. Some locations like Palm Jumeirah and Downtown Dubai are still attracting a lot of buyers from other countries. Dubai is now becoming the hub of rich people who are looking to live a comfortable and luxurious life in a peaceful environment. Now expensive properties like villas and townhouses are now being sold in huge numbers just like the sales of apartments.
