The ready property market in Dubai is experiencing a supply shortage as more end-users move to the city due to rising rental costs. Although the off-plan segment is leading the current property market rally, demand for ready properties remains strong. Well-priced ready units are selling within a month of listing.
Driven by demand from high-net-worth individuals and residents, the supply of ready properties is insufficient as the city’s population grows. “Dubai is gaining over 8,000 new residents each month, and most projects being launched and sold are quickly snapped up. Ready properties that are priced correctly are selling within a maximum of four weeks,” Provident Estate reported.
“Demand for ready properties in 2024 has been high, but due to limited stock, most growth has come from the off-plan segment. There has been a 13.2 percent increase in ready property transactions year-over-year,” stated Engel & Völkers Middle East. Ready property prices rose by 14.57 percent in the first half of 2024 compared to the same period last year.
Dubai’s population is on track to meet the 2040 growth plan, rising from 3.66 million at the beginning of 2024 to 3.754 million by August 1. At this steady growth rate, the population is projected to exceed 5.5 million by 2040.
Most buyers of ready properties are residents or investors using these properties for personal purposes amid high rental prices. According to the World’s Wealthiest Cities Report 2024 by Henley Partners and New World Wealth, the number of individuals in Dubai with liquid assets of $1 million or more increased by 78 to 72,500 between 2013 and 2023.
“The Dubai real estate market has continued to grow with record sales across all sectors. The end-user market has expanded since 2020, and villa/townhouse prices have risen due to low supply. Luxury properties in Dubai are still attracting high-net-worth individuals and investors seeking premium real estate opportunities,” Provident Estate said.
Currently, Dubai’s property market offers an average rental yield of 6-8 percent, compared to 2-3 percent in London and Hong Kong and 3-4 percent in New York. While property prices in these cities increased by 10-20 percent over the past five years, Dubai saw an 18 percent rise in just one year from 2022 to 2023.
