Dubai’s real estate market continues to flourish, showcasing impressive growth in the first quarter of 2024. The latest data from the ValuStrat Price Index (VPI) reveals significant expansion across residential and commercial sectors, positioning Dubai as a premier destination for real estate investment.
Residential Sector Growth
In the residential segment, the VPI for capital values surged by 6.4% quarterly and 24.7% annually, reaching 167.5 points. This growth was driven by a notable 5.7% quarterly and 20.1% annual increase in apartment valuations, with mid-affordable communities like Discovery Gardens (32.6%) and The Greens (29.8%) leading the charge. Villas also showed resilience, achieving a 10-year high with a 29.6% annual increase, particularly in areas like Jumeirah Islands (32.2%) and Palm Jumeirah (31.9%).
Commercial Sector Highlights
The office sector saw a remarkable upswing, with valuations soaring by 29.9% annually. This marked the 12th consecutive quarter of growth, reflecting sustained demand for premium office spaces. Key business districts such as DIFC (38.7%) and Jumeirah Lake Towers (36.1%) showed robust performance, pushing the VPI for office capital values to a record 194.2 points.
Rental Market Dynamics
Residential asking rents increased by 11.7% year-on-year, with apartment rents rising 16.4% and villa rentals up 6.1%. The average rent for apartments reached Dh85,800 annually, while villas averaged Dh403,800. Residential occupancy in Dubai stood at 87.7% during the first quarter.
Market Expansion and Future Outlook
Dubai is set to welcome 46,558 new homes this year, with 5,770 apartments and 1,038 villas already completed in Q1. Off-plan properties remain attractive, with Oqood registrations growing by 20.3% year-on-year, translating to Dh55.3 billion in investments.
Haider Tuaima, Director of Real Estate Research at ValuStrat, emphasized Dubai’s dynamic market, highlighting steady growth across all sectors. With its robust infrastructure and strategic developments, Dubai continues to attract global investors, cementing its status as a leading real estate hub in the region.
