Dubai Real Estate Market Forecast to Continue Upward Trend in 2024

Dubai, UAE – The Dubai real estate sector is poised for continued growth throughout 2024, following a robust first quarter with over $27.24 billion in sales from more than 30,000 transactions. This positive trend is underpinned by solid demand and a steady population increase, signalling a sustained upward trajectory in both transactions and prices.

Experts have observed a significant 30.91% year-on-year increase in residential prices, reaching Dh72 billion in the first two months alone, compared to Dh55 billion in the same period last year. This growth is mirrored in the number of transactions, which saw a 26.6% increase year-on-year. The resilience and adaptability of the Dubai real estate market have been highlighted against the backdrop of challenging global economic conditions, with cautious optimism driving the market forward.

Nadia Zahid, a Property Consultant at Xperience Realty, comments on the promising outlook for Dubai’s real estate sector. She attributes it to significant launches by developers such as Emaar and Nakheel and a robust demand for off-plan properties. She further notes the impact of government initiatives like the Economic Agenda D33 and Vision 2040 on boosting investor confidence.

Similarly, Bas Kooijman, CEO and Asset Manager of DHF Capital, identifies the UAE as a prime geography for real estate diversification. He cites high rental income potential and impressive growth projections as key factors that make Dubai a strategic investment choice.

The anticipated market growth is further supported by Realiste, a prop-tech firm specialising in real estate investment solutions, which forecasts a 15% growth in Dubai’s real estate market this year. CEO and founder Alex Galt highlights the emirate’s appeal regarding safety, cleanliness, tourism, and overall quality of life as significant driving forces.

Cushman & Wakefield Core’s annual report underscores the strong population growth witnessed in Dubai, with an addition of 100,240 residents in 2023 and a projected increase to 5.8 million by 2040. This demographic trend points to a consistent demand for residential units, further buoyed by a 12% increase in private school enrolments in 2023.

Industry leaders remain optimistic about the market’s trajectory despite potential moderations in pace and concerns over affordability for the low to mid-market segments. The consensus is that Dubai’s real estate market will maintain its growth, driven by robust demand, strategic government initiatives, and a diverse offering that appeals to local and international investors.