Between Q2 and Q4, an anticipated additional 29,690 units are slated for handover, elevating the annual projection to almost 38,000 units.
A new report disclosed that over 8,000 fresh properties were introduced to the Dubai real estate market in the initial quarter of 2024.
During the first quarter of 2024, Cushman & Wakefield Core’s Q1 market report for Dubai noted the delivery of over 8,351 units, aligning with market demand.
Anticipated for the second to fourth quarters are an additional 29,690 units, totaling almost 38,000 units for the year.
Prathyusha Gurrapu, Head of Research and Consulting at the company, remarked on the residential market’s ongoing growth in rents, sales prices, and occupancy levels, though at a moderated pace.
Expected surge in new real estate project launches
The number of apartment project launches rose by 22 percent, whereas villa launch volumes saw a decrease of 30 percent.
“Developers continue to lag in responding to the persistent demand for villas, primarily due to the scarcity of available land for acquisition,” Gurrapu explained.
On Tuesday, the company stated that the overall supply of residential properties and expected delivery figures align with forecasts, indicating no imminent oversupply challenges. However, it cautioned that a substantial number of project launches may affect the supply-demand balance in two to four years, assuming timely delivery of most projects. This announcement follows the recent revelation regarding the Al Maktoum International Airport, anticipated to enhance Dubai South, Expo Village, Expo City Dubai, and neighboring regions for residential, commercial, hospitality, and industrial projects in the short to medium run.
Off-plan, secondary real estate markets stabilising
Off-plan transaction activity maintains its dominance, seeing a 22 percent year-on-year increase, while the secondary market shows stability with a 16 percent rise.
“It’s worth noting that while there’s been an increase in transaction volumes overall, secondary market transactions have remained steady over the last three quarters, indicating consistent end-user demand. However, off-plan launch volumes have seen significant fluctuations due to prominent project launches, although they’ve generally trended upward,” Gurrapu explained.
The real estate market in the city reached unprecedented levels in Q1, with over 34,000 transactions recorded, marking a 20 percent rise compared to the same period last year. This quarter will be remembered as the most active in the emirate’s property sector history.
