We are delighted to release our Market Insights report for H1 2024. Our report stands out by concentrating solely on the residential sector, providing a detailed examination of the Villa, Townhouse, and Apartment market. Insights into the commercial and land market have been intentionally excluded. This report, therefore, serves as a comprehensive study of the Dubai residential sector, with an emphasis on community-specific insights.

Key Points of Market Insights:

• The Dubai residential market continues its expansion, with 75,543 residential transactions valued at AED 191 billion during H1 2024. This represents a 36% increase in transactions year-over-year (YoY) and a 17% increase half-on-half (HoH), highlighting the ongoing growth of the Emirate.
• The rising transaction volume and total value at an Emirate-wide level underscore a macro market trend that is likely to persist for many years. However, it’s important to recognize the potential disconnect between macro-level market data and micro-level community or sector-specific data. For instance, community-specific reports may show direct like-for-like comparisons, while macro-level comparisons can be skewed by Dubai’s rapid expansion.
• In H1 2024, there were fewer transactions in the above AED 10 million price segment compared to H2 2023, but significantly more than in H1 2023.
• While the supply pipeline for off-plan completions is set to surge in 2025 and 2026, there will need to be a consistent level of new off-plan launches to sustain the completion pipeline for 2027 and beyond. This is crucial to meet the forecasted rising demand driven by population growth.
• It is important to note that residential supply must cater to three distinct and growing demand pools: population growth (residents), exclusive use second home/holiday home buyers, and investors targeting the rising tourist market through managed holiday home investments.
• Average selling prices have increased in 19 of the 20 villa/townhouse markets tracked in this report, with an average increase of 28%.
• Average selling prices have also risen in all 10 apartment communities tracked, with an average increase of 17%.
• As prices have risen, transaction volume has reduced in the majority of the tracked communities. This is likely due to constrained supply rather than weak demand.
• For Espace Real Estate specifically, the report will show a 10% reduction in listings alongside an 11% increase in buyer registrations.
• Average rental prices have increased in all but one of the communities tracked in this report.
• The average rental price increase for the villa/townhouse market is 23%.
• The average rental price increase for the apartment markets is 22%.

Source: Espace Real Estate

July 29, 2024