The Dubai Real Estate Market significantly supports the United Arab Emirates‘ economic diversification. To become less dependent on oil and gas earnings. Additionally, the UAE government is concentrating on growing its economy. Roughly 5.5% of the UAE’s total GDP is produced by real estate-related businesses. With assets of about 43.4 billion USD, Abu Dhabi Investment Authority (ADIA), as a real estate investor from the United Arab Emirates, is a prominent player in the global market.
Dubai Real Estate Market Insights:
As we approach the handover stage in 2024, numerous upcoming projects and off-plan developments will expand the choices available to home buyers. In 2024, there might be an increase in the number of properties on Dubai real estate market as sellers seek to capitalize on current prices. Additionally, developers are expected to continue launching new projects at a swift pace. This surge in supply is likely to mitigate the price escalation observed in recent years. Renters may experience some relief in the latter part of 2024 as the delivery of more new homes eases the strain on the current rental market.
The Rising of Borrowing Rates and Market Growth:
- Estimated increases in borrowing rates notwithstanding, researchers project substantial growth in the UAE’s real estate market in 2024. Moreover, the persistent shortage of suitable apartments is expected to drive up rental costs, contributing to an overall rise in the cost of living.
- S&P Global reports a forecasted annual GDP growth rate of 2.5% for the Emirates in the current year and 2% in 2024. Additionally, the UAE’s population is expected to expand by 2% annually.
- The UAE real estate market has been notably active, experiencing a surge of over 60% in recent months. Specifically in Abu Dhabi, prices have seen a 6% increase over the preceding year.
Driving Economic Growth, Foreign Labor Magnet, and Strategic Solutions to Housing Demand:
- The real estate sector is a powerhouse in Dubai, contributing 82% to its gross domestic product. Not only a key player in hiring foreign labor, but Dubai real estate market has also become a focal point for investors due to its ambitious transformation into a high-end travel destination.
- Urban landscapes in Dubai are mostly composed of investment villas, numbering around 72,000, with an additional 40.6 thousand private villas. The burgeoning population, exceeding 3.5 million as of April 2022, is mainly comprised of individuals seeking housing, highlighting a pressing need.
- To address the housing demand, manufacturers have proactively tailored their offerings to meet customer preferences. With completion slated for late 2024 or early 2025, a strategic plan involving over 10000 developments for villas and townhouses was initiated in 2023. This comprehensive approach aims not only to fulfill the escalating demand for homes but also to regulate the pace of price growth.
Dubai Real Estate Forecast
- If you are looking for a property in the UAE, now it is the best time to buy. As the economy is growing significantly since 2022, and Dubai real estate market is predicted to expand further in 2024.
- As a result of new inventory is just entering the housing market, properties prices are predicted to grow by 20 to 25% every year.
- Given the sustained high level of demand for property in the UAE, newly listed homes will take some time to reach the housing market.
- The demand for premium properties in the UAE has grown dramatically during the last two decades. Furthermore, costs have risen in recent years, the housing industry is still profitable, and customer interest in villas is projected to outpace that in apartments.
Why Buying Real Estate in Dubai?
- The United Arab Emirates has increased in popularity among investors due to its investor-friendly policies, tax-free real estate, high ROI, and well-established amenities.
- The UAE government has lightened investment laws, allowing for a streamlined registration process, lower taxation, freehold ownership rights, and a specialized real estate regulatory organization.
- The strong return on investment in Dubai real estate market may be attributed to its high-end facilities, completely built residences, and infrastructural developments, which have resulted in consistent real estate market upticks.
- The ROI for Dubai Marina, Jumeirah Village Circle, and DAMAC Hills is expected to rise. As Dubai Marina enjoying a 7.2% ROI and Jumeirah Village Circle enjoying a 6.8% ROI, respectively.
- Dubai real estate market offers sophisticated amenities, which include transportation and upmarket neighborhoods, are known for offering resident’s modern conveniences and a pleasurable experience.
- The Golden Visa program, which grants qualifying investors long-term resident permits, provides investors with long-term stability and rewards.
- Higher interest rates have consistently helped both foreigners and residents in the UAE’s real estate industry High-end villas and exquisite apartments are expected to be in short supply, with developers planning 10,000 new inventories for the following year.
- The drop in the rate of inflation has also benefited Dubai real estate market, resulting in stable pricing and lower living expenditures According to the forecast, inflation would be 4.5% in 2024 and 3% in 2025.
A Guide to Choosing the Right Property
Before delving into details, let’s make it clearly that “2024 is poised to be the prime year for investment opportunities in Dubai real estate market.” Nevertheless, individual purchase decisions may be influenced by various factors. Top Luxury Property recommends considering the following types of properties:
- Villas
- Apartments
- Penthouses
- Townhouses
- Twin houses
In summary, Dubai real estate market in 2024 presents a compelling blend of economic growth, strategic development initiatives, and investor-friendly policies. For those considering real estate investment, the current landscape suggests a prime opportunity to capitalize on the market’s growth potential and the array of property options available.
