Dubai Real Estate Market Forecast 2024

The Dubai real estate market is positioned for significant growth and transformation in 2024, driven by economic expansion, increased demand, and evolving market trends. As the city continues to solidify its position as a prime choice for investors and homebuyers, it is essential to understand the key trends and insights that will shape the real estate landscape in the coming year.

Key Trends and Insights

Price Growth: The Dubai real estate market is expected to continue growing, with property prices projected to increase by 4.5% in 2023 and 3.0% in 2024. This growth is being driven by several factors, including a strong economy, increased international investment, and plans to double the UAE’s population. The average price of premium houses is anticipated to rise by 50% by the end of 2024 in comparison to the previous year. Despite the price hike, premium homes in Dubai are still considerably less expensive than in other cities in the world.

Demand: The demand for properties in Dubai remains strong indicated by a healthy rent market sustaining interest from both local and international investors. This demand is expected to grow even further due to the influx of newcomers, including investors from Mexico, Canada, and China. Dubai's population is forecasted to continue its upward trajectory, with an expected surge from 3.5 million in 2023 to 5.5 million in the coming years. This population growth will exert upward pressure on the demand for housing, further fueling the expansion of the real estate market.

Rental Yields: The UAE's property market offers attractive rental yields, making it an attractive investment destination. The rental market is expected to remain strong, with rents continuing to rise by an estimated 3% in 2024. This makes Dubai an ideal location for investors seeking rental income.

Economic Growth: The UAE's economy is expected to grow by 17.6% in 2024, directly contributing to and influencing the stability and growth prospects of the real estate market. We anticipate that this growth will have a knock-on effect on the workforce demand, job opportunities, and increased demand for housing, further bolstering the property sector.

Market Stability: The Dubai real estate market is considered stable, with minimal risks associated with property investments. This stability is expected to remain in 2024 and the following years, reinforcing its attractiveness as an investment destination. The anticipated expansion of the economy suggests the potential for property values to appreciate, offering investors the prospect of capital gains over time.

Potential Price Correction: Dubai's record property prices are expected to start easing by the end of 2024, with a mild price correction of 5% to 10% anticipated in the next 12 to 18 months. This correction is expected to be mild and is not expected to significantly impact the overall growth of the real estate market.

Luxury Property Market Evolution

The luxury property segment in Dubai is anticipated to experience significant growth, with the city leading the global market for luxury homes. Sales for homes worth $10 million or more reached a record 277 sales in the first nine months of 2023, totaling $4.91 billion in transactions. This trend is expected to persist and be driven by the continued influx of high-net-worth individuals seeking exclusive real estate experiences.

Sustainable Living & Green Development

The emphasis on sustainable living and green property development is a defining trend in Dubai's real estate market this year. The UAE's commitment and dedication to achieving Net Zero by 2050, coupled with Dubai's 2040 Urban Master Plan, positions the Emirates as a premier destination for investors seeking both business opportunities and a sustainable living environment.

Dubai's real estate market forecast for 2024 points to a period of significant growth and evolution, underlined by robust economic expansion, rising demand, and a continued influx of foreign investment. The city's commitment to sustainable living and green property development further enhances its appeal as a global real estate investment destination. Yesterday was the best day to invest but today is still better than tomorrow.