Dubai real estate market performance in April 2024

Dubai real estate market performance in April 2024 - Makebiz

On a year-on-year basis, real estate sales volumes in Dubai rose by 45% in April. At the same time, average prices are rising faster than usual. According to Property Monitor’s Dynamic Price Index, property prices in Dubai currently stand at AED 1,351 per square foot, up 9.5% from the previous record high and market peak in September 2014.

Sales transactions are down 15.1%, but it is worth bearing in mind that this is directly attributable to the week-long government shutdown due to holidays. Residential transactions, including apartments, townhouses and villas, accounted for the majority of sales — 91.8% (10,659 transactions). The largest number of commercial real estate transactions were hotel apartments (3.8%), office space (1.8%) and land sales (1.5%).

The record level of activity in the ready-made projects market shows no signs of slowing down and is expected to continue for the foreseeable future. Since the beginning of the year, there has been a steady stream of new off-plan project launches from well-known developers. The wide geographical coverage will provide plenty of opportunities for investors and end users alike.

April statistics suggest that the divergence between the two market segments will continue:

1. On the one hand, the market for finished real estate remains largely flat across most property types and price categories, with the exception of the renovation effect in the single-family home segment. Said properties have now transitioned from their original design to modern homes with an appropriate price category.

2. On the other hand, the suburban real estate market is poised to maintain its dominance for the foreseeable future as project launches are proceeding at a brisk pace. Although recent unscheduled launches have generated strong demand, continuous monitoring of the pace of absorption is necessary. A slowdown in absorption could signal a potential oversupply problem, which could lead to a slowdown in market growth.

Optimistic forecasts for the coming year include a steady growth rate for the real estate sector in Dubai, continued mortgage rates, and active construction in various housing categories. All this allows us to conclude that various kinds of investments in the real estate sector in the UAE are promising.

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