A lot of curiosity and speculation surrounds the Dubai property market in the year 2024 for the sales of properties. Showing the larger moderdern requirements of the buyers, the market saw a mix of stability and growth in the first half of 2024. Let us now see the main reasons affecting the property market at this time.
Dubai's property market kept building on the popularity from past years in the first six months of 2024. In both commercial and residential sectors, the market saw good growth. Important things in this growing demand of luxurious properties were government programmes, economic growth, and foreign investment in Dubai.
The first half of 2024's Dubai property market showed stability and good growth. Residential as well as commercial sectors are seeing a fantastic time with more transactions, growing property prices, and proper rents. Attracting money and promoting development are getting much help by government programmes like the Golden Visa programme and attempts at providing smooth services in the property market.
Dubai's residential housing market was clearly quite active. Both the rental and sales market showed some big changes. The following are some highlights:
1. Property Sales: The volume of property transactions grew really fast. The Dubai Land Department (DLD) showed that from 2023 to the first half of 2024, sales transactions increased by 12% because of the new properties being built by top builders in Dubai like Emaar Avena 2 and Velora from Emaar Properties.
Rising Property Prices: Another growing situation seen was in the property prices. In the first half of 2024, house prices rose by 7% generally. Prime sites including Downtown Dubai, Dubai Marina, and Palm Jumeirah saw more of this surge. Some brokers are expecting that prices of properties like Sobha Skyscape Altius and Damac Violet will also increase.
2. Rental Market: With a little rise in average rental pricing, the market is still good for rental income. The rental of properties in prime locations has shown a 3% rise from the last year. Some of the high demand areas such as Sobha Hartland 2, Rashid Yacht & Marina, Jumeirah Village Circle, Business Bay, and Damac Hills 2 remained popular among renters, which helped to keep rental rates stable.
Positive changes are also seen well in the commercial property market. Demand for retail and office spaces surged as Dubai's economy is growing and companies rebuilt from the pandemic.
Particularly in free zones like Dubai Internet City and Dubai Media City, the demand for office properties grew by 10%. Office space rental prices were also good with a little 2% rise in top areas.
Leasing activity in the retail sector also grew because of the huge demand in 2024. Prime locations, shopping zones and retail stores attracted more people and occupancy rates. Several foreign companies showed their interests to establish new stores in Dubai and it has favoured the market situation.
Several government policies and economic considerations help to maintain Dubai's first half of 2024 property market growth:
More foreign investment was drawn in response to the Golden Visa programme, which lets entrepreneurs, investors, and rich people from other countries to live in Dubai for a long period.It is good to see Dubai's attempts to diversify its economy outside of oil and gas include economic growth. Huge works in fields like real estate, travel, and banking raised investor confidence.
Not all is without any difficulties even if it displayed suitable growth in the property market. Potential hazards were growing living expenses and uncertainty in the world economy. Still, the second half of 2024's Dubai property market seems generally to be bright.
Rising Cost of Living: The increased cost of living resulting from the rise in rents and property prices may affect the future demand. Global economic events like inflation and other difficulties are also affecting the mood of the buyers from other countries and the situation of the market.
The property market is expected to be strong as Dubai keeps projecting itself as a popular centre for business and tourism. Although problems like economic downfall in the world and growing cost of living are still there, generally the situation is good. Both locals and foreigners have high hopes for the future by seeing a continuous rise in these few months.
