Asteco’s Q2 2024 Dubai real estate report highlights key sector trends:
The Dubai real estate market may see an additional 25,000 new homes by the end of the year, as reported by Asteco.
The UAE real estate expert noted that Dubai’s strong economy and appealing lifestyle continue to attract expatriates.
The fundamentals of Dubai’s real estate sector are solid, bolstered by substantial equity, ongoing economic growth, infrastructure improvements, and a rising population.
Dubai Real Estate Q2 2024
According to the report, the rate of new supply slowed in Q2 2024 compared to Q1 2024, with around 6,750 residential units completed.
However, project launches remained vigorous, covering a range of developments from single low-rise buildings to high-rise towers and large master-planned communities.
Asteco forecasts that an additional 25,000 residential units will be delivered in the second half of 2024, though some might be postponed until 2025.
Rental rates for apartments and villas increased quarterly by 3 percent and 2 percent, respectively, while annual rental growth moderated to single digits, with apartments rising 8 percent and villas 4 percent.
This increase is mainly due to the updated RERA rental index, which allows landlords to raise rents more substantially upon lease renewal.
The office rental market thrived, especially for Grade A spaces, driven by strong demand and limited supply. Rental rates are expected to keep rising until new supply enters the market or business conditions shift.
Dubai’s sales market remained robust, supported by ongoing project launches that boosted off-plan transactions. Q2 2024 saw a steady 2 percent rise in average sales prices, with some areas like Jumeirah Village and Business Bay experiencing above-average growth.
This is due to heightened demand and a significant increase in off-plan launches and newly completed developments, which often offer higher quality and pricing compared to earlier projects.
The off-plan market sustained impressive momentum, with local and international investors actively purchasing newly launched units, drawn by the promise of strong returns in a tax-friendly environment.
Some lenders have begun offering enhanced financing options for off-plan properties, allowing buyers to secure up to 10 percent more funding during construction.
This additional financing is typically available for projects with at least 50 percent construction progress, providing a degree of risk mitigation for lenders.
This development not only boosts the off-plan market but also expands accessibility for potential buyers.
