Villa prices experienced notable growth, with capital values rising by 33.4 percent year-on-year, according to a new ValuStrat real estate report for Q2 2024.
Dubai’s real estate market showed strong performance in the second quarter of 2024, with significant increases across residential, office, and retail sectors, as highlighted in the latest ValuStrat real estate report for Q2 2024.
Villa prices saw particularly strong growth, with capital values increasing by 33.4 percent year-on-year.
Haider Tuaima, Director and Head of Real Estate Research at ValuStrat, commented: “The Dubai real estate market has demonstrated impressive growth and resilience in recent months. The ValuStrat Price Index for Residential Capital Values rose by 6.4 percent quarterly and 28.2 percent annually, reaching 178.2 points.
“Despite severe flooding caused by record rainfalls in April, the quick and effective response from developers and authorities helped mitigate the damage, ensuring that market activity and property valuations remained robust in the following months.”
The office sector also saw strong performance, with the VPI for office capital values increasing by 31.7 percent annually and 9.4 percent quarterly, reaching 212.5 points. This represents the highest quarterly increase in a decade.
In the retail sector, Emaar Properties reported 98 percent occupancy in their prime mall assets, while overall mall occupancy was at 96 percent during the first quarter of 2024.
The hospitality sector also experienced growth, with total international guests reaching 8.12 million by May 2024, a 9.9 percent increase compared to the same period last year.
Hotel occupancy increased to 81 percent, a rise of 1.4 percent year-on-year.
However, Tuaima noted, “The decline in transaction volumes requires a closer examination of market dynamics as stakeholders navigate this evolving landscape.”
