As 2023 nears its conclusion, many investors, home buyers, and even those looking to rent are looking towards the Dubai real estate market in 2024. Property brokers in Dubai have already mentioned many predictions; however, they vary greatly.
Hence, we will start with how this incredible city’s property market fared in the first three quarters of 2023. Then, we will highlight the most sound forecasts. We will also look at some of the more popular areas for investment in 2024.
Q3 2023 Dubai Property Market in Retrospect
In Q3, property transactions saw excellent growth. More than 31,000 transactions were recorded. The total sales value was above AED 97 billion, with apartments being investors’ primary focus of interest. More than 23,000 apartments, 3000 buildings, and 5000 plots were sold. In terms of rentals, such as apartments and villas, they also saw an increase in rates.
The number of mortgage transactions also showed a significant rise. Mortgage transactions were not the only gainers. Off-plan properties again beat the ready-made real estate market by a considerable margin in sales volume value. Let’s move on to the top areas based on transactions and transaction value.
The areas with the highest transaction values were Dubai Harbor, Palm Jumeirah, and Sobha Hartland. Regarding the number of transactions, Jumeirah Village Circle, Arjan, and Sobha Hartland were in the top 3.
As we can see, the Dubai property market performed exceptionally well; it increased by leaps and bounds. However, the reason for this is mainly because of increased foreign investment. Next, we’ll see if this trend continues or stabilizes and taper off.
Predictions for Dubai Real Estate 2024
The fact of the matter is that 2023 was quite phenomenal for the Dubai real estate sector. However, the massive increases are not sustainable due to the enormous influx of foreign investment. This immense inflow of asset-purchasing was due to certain geo-political events happening in the world.
S&P Global has reported that the property market growth will likely cool down compared to previous years. The estimated growth will be 5% to 7%.
Dubai’s economic growth is the major force behind the immense growth in the real estate sector. That will continue into 2024. This is due to the government’s investor-friendly initiatives and continued work to support economic growth. The robust economic growth is expected to average around 3% compared to 5% in previous years.
Property brokers in Dubai also predicted that off-plan properties are expected to continue being the more coveted option. Whereas apartments are the preferred choice of property buyers, this trend will continue.
Now, let’s move on to some areas to consider investing in 2024.
Investment Opportunities to Consider in 2024
It is an exclusive neighborhood in Dubai featuring luxurious facilities such as golf courses, malls, and parks. Having shown a consistent increase in property value, Arabian Ranches is expected to continue being a coveted option.
Business Bay is a quickly expanding area in Dubai. It is an ideal investment option due to its modern architecture and luxury apartments. Also, it is comparatively more affordable than some other high-end places in the city.
It does not get better than the Dubai Marina when it comes to amazing views and lifestyle. That is why it is a popular investment area. You can purchase villas, flats, and even commercial properties.
Undoubtedly, it is one of the best places in Dubai for purchasing property. The Dubai Mall, the Dubai Opera, and the Burj Khalifa are all situated here.
Jumeirah Village Circle (JVC)
JVC is a rapidly growing community offering affordable properties compared to other places. Options include flats, townhouses, and villas.
Well, there you have it—a breakdown of crucial predictions for Dubai real estate in 2024. We sifted through the many projections to ensure we brought you the relevant ones. The fact is that Dubai has a robust economy, and it fared well even during the pandemic.
It has seen significant recovery and growth post-pandemic. However, geo-political factors might have contributed to its immense growth in the past year. Still, the thoughtful policies and attractive initiatives of the government continue this economic and consequent real estate growth.