Huge Demand and Effects of Inflation Sustain Robust Dubai Real Estate Market

According to the latest market research study, Dubai remains a popular and appealing destination for many property owners from other countries, such as India and Russia.

Thriving Market Of Dubai

Dubai is a hot spot for property investment. 

The city's continued reputation as a lavish and lucrative global city draws new tourists, residents, groups, and individual investors from abroad. This constant rise in population will provide an optimistic future for the real estate market in a city such as Dubai. 

Properties such as Binghatti Hills 3 are ideal opportunities to buy homes in Dubai at a reasonable price. The initial two stages of Binghatti Hills were sold in massive numbers.

A few professionals from Dubai Housing are expressing excitement over an update on the market that reveals the continuing demand for various types of property in Dubai. 

The demand is hugely satisfying, filling the number of homes in the market. The current market situation is likely to last, mainly because many off-plan dwellings will be completed by the beginning of the first quarter of 2025.

The Rise In The Demand And Pricing Of The Properties

A few reports show that the Dubai market for homes for rent, ready-to-buy, and off-plan property remains solid. 

While the massive capital improvement seen in the last two years isn't expected to continue at the same pace, steady and constant growth is expected in the next few years. Modern features and amenities included with these properties are an important factor in the high demand for these homes.

Properties in Dubai that were built at lower prices are expected to rise in cost significantly. This is because the expense of building new homes in Dubai continues to improve due to the rising cost of construction materials, logistics, and other expenditures. 

New developments like Damac Riverside Community could see a rise in price because it will cost a lot to construct the housing units in a highly sought-after location such as Dubai Investment Park.

How Was The Q1 Of 2024 Compared To The Past Two Years?

The business report gives Q1 figures that show growth in the real estate market over the last three years. The number of sales transactions in the first quarter of 2024 was 65,450. 

This is more than double the number of transactions in the first quarter of 2023, which was 32,725, and three times greater than Q1 2022, which had 21,817 transactions.

When we examine the number, the sales transactions for the first quarter of 2024 amounted to AED 186 billion. This represents a 24 percent improvement over the same time in 2023. This was approximately AED 150 billion. 

It was also a 107 percent rise from the first quarter of 2022, which totaled AED 90 billion. This huge rise suggests a thriving and expanding market in the UAE. 

This can be seen in the ELO sales made through Damac Properties, which were sold out, while ELO 2 and ELO 3 were required to be released for buyers.

Other Reasons For This Thriving Market

Dubai's location is so great that other nations want to visit. 

The journey to Dubai via air is less time-consuming for Asia, Europe, and Africa, which comprise a substantial portion of the world's population. 

Large vessels can be easily transported through the city to other areas of the globe, which implies that Dubai is a renowned commercial location in the Middle East. 

Professionals from different countries travel to Dubai to work and search for a good rental apartment.

The city's connectivity is also excellent due to smooth road connections and improved public transportation. Long distances traveled take less time, so each part of this city is immensely satisfying for leading a relaxed lifestyle.

 Foreigners visit Dubai to enjoy lavish lifestyles and holidays with family or friends. The government also pays attention to the growth of hospitality and real estate to draw more visitors.

The Bottom Line

The real estate market in Dubai continues to provide opportunities. Its appeal draws many investors, and the rising cost of new homes means the market remains appealing and steady. 

With new developments to be completed, the demand for homes in this posh city is expected to remain strong, with a huge growth potential for the upcoming year