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Dubai Real Estate Forecast 2024: What to Expect in the Upcoming Year

Dubai Real Estate Forecast 2024

Table of Contents

Dubai Real Estate Forecast Overview

Let’s begin this blog by highlighting the impressive start of the year 2024. Dubai’s real estate market, which is a highly preferred investment destination world wide, has experienced a great start to 2024. This transaction was valued at a remarkable AED 10.1 billion. Contributing to this the government’s initiatives such as the expansion of visa schemes and hosting Expo 2020 have played a great role in promoting the city’s prosperity. This success can be achieved only through pure intentions and great efforts put forward by the visionary leadership. Here this role has been truly fulfilled by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, the ruler of Dubai who has come up with bold visions and made fruitful results out of it. Please continue reading for more insights on 2023 analysis and real estate Dubai forecast 2024

Dubai Real Estate Forecast 2024

Infrastructure Development and Inclusive Governance

Dubai’s commitment to infrastructure development, safety, and security standards has created a cosmopolitan city known for inclusivity and honest governance. The implementation of various visa schemes, coupled with effective management during the pandemic, has positioned Dubai as a global hub for residents and investors alike.

Population Growth and Visionary Projections

Dubai’s population has covered a remarkable growth from its initial stage until now. Dubai started its journey with just 20,000 people in the year 1950 and reached a massive 3.6 million population in the year 2023 that truly indicates the appeal of Dubai. Visionary aims of the Visionary leaders are expecting to expand the population to reach 5 million by 2030 and a substantial 7.8 million by 2040. This exponential rise is due to the city’s cosmopolitan ambiance and forward-thinking leadership. Also, these are the reasons that consistently draw people from diverse backgrounds. Dubai’s appeal as a global hub is underscored by its ambitious growth plans and by strengthening its status among the world’s top five cities.

Real Estate Market Overview

Despite its global standing, Dubai’s real estate prices remain considerably lower than those of top cities like Singapore, Hong Kong, Tokyo, London, Delhi, and Mumbai. With factors like maximum rental returns, no capital gain tax, and a regulated land department, Dubai’s real estate journey is just beginning.

Future Price Projections

Dubai’s property market has experienced a price increase since 2020, deemed a market correction rather than true appreciation. Current trends indicate a potential rise to AED 10,000 to 15,000 per sq ft, aligning Dubai with top global real estate markets. Investors should take note of the urgency to make informed decisions due to the city’s continuous attraction of worldwide buyers from India, China, Russia, the UK, Europe, Latin America, Mexico, and Canada, contributing to the sustained interest and competitiveness in Dubai’s real estate sectors.

Positive Outlook for 2024

With a continued interest from local and international inventors, Dubai’s residential property market remains stronger in 2024. Leading developers like Emaar, Meraas, Nakheel, Aldar Properties, Damac Group, Omniyat, and Sobha are highly contributing to the pride and growth of the Dubai market. In order to address the demand prevailing in the market, these developers will be delivering new homes in 2024. But the gap between supply and demand will likely sustain property price growth. 

New Projects in Dubai

There are many more projects in the queue yet to be launched. Each of them are coming up with different concepts, prices, spaces, and opportunities. Let’s have a look at some of the new projects;

  • Aeon at Dubai Creek Harbour: A Mid-rise residential tower with approximately 35 to 40 levels. Units range from a selection of 1 to 3-bedroom apartments starting at a price of AED 1.7 million.
  • Address residences Zabeel: Introduces an exclusive collection of 1 to 3-bedroom apartments priced around AED 2300-2400 per sqft.
  • Sky Residences at Expo City: It offers 1-3 bedroom apartments starting at AED 1.7 million.
  • The Valley: In The Valleymore projects are going to be launched. The latest properties in this community range at AED 1012 per sq ft, which is way below that the average Dubai property price. The property types available are townhouses and villas.
  • The Oasis: Expected to launch more rewarding projects this year. Property types available are Villas, Townhouses, and ultra-luxury mansions. The average price per sq ft for the properties starts at AED 1382. 

Factors Driving Growth

The UAE’s pursuit of digitization is set to revolutionize real estate transactions. Anticipated factors driving growth include a 4.5% expected growth in the UAE economy in 2024-2025, foreign investment buoyed by a safe investment environment, population growth, and the official approval of the gaming industry, poised to boost the hospitality sector.

Strong Projections for Luxury and Rental Markets

The luxury real estate segment is expected to experience the strongest growth that Dubai has ever seen and also with that the wealthy investors are drawn to the city’s high-end properties. The rental market is also forecasted to remain strong enough with an expected 3% rise of rents in 2024.

Economic Growth and Future

The IMF’s real estate Dubai forecast 2024 highlights that the UAE will be ending 2023 with a growth rate of 3.5% and will show the green sign that the country is on the right path. For 2024, this projection estimate has reached 3.9%. Besides that, the economy will keep growing since the UAE’s economy is expected to increase by 17.6% during the next 5 years, resulting in an average GDP growth rate of 3.5%.

Conclusion

In conclusion, the real estate Dubai forecast 2024 is heading to a promising era with the confidence of a visionary leadership, strategic decisions, and favorable economic conditions contributing to sustained growth. Being as the best, giving at the best and raising for the best Dubai is just making the emirates drowning in pride. Investors are encouraged to own the opportunities presented by this dynamic market.

FAQs

What factors are driving the Dubai real estate market forecast for 2024?

Key factors include economic stability, population growth, increasing foreign investment, and ongoing government initiatives to boost the real estate sector.

Are there areas in Dubai expected to see higher real estate growth in 2024?

Yes, areas such as Dubai Marina, Downtown Dubai, and the Palm Jumeirah are expected to experience higher growth due to their popular locations and comprehensive amenities.

What is the expected trend for Dubai real estate prices in 2024?

It is anticipated that Dubai real estate prices may continue to see a moderate increase in 2024, reflecting steady demand and ongoing development in key areas.

Is real estate cooling down in Dubai?

The real estate market in Dubai has shown signs of cooling down recently. Factors such as oversupply in certain segments, economic uncertainties, and changes in government policies have contributed to this trend.

Is it a good time to buy real estate in Dubai?

Whether it’s a good time to buy real estate in Dubai depends on various factors including your financial situation, investment goals, and market conditions. It’s essential to conduct thorough research and consult with experts to make an informed decision.

What is the price of real estate in Dubai?

Real estate prices in Dubai vary depending on the location, type of property, and current market conditions. Generally, prices range from moderate to high, with luxury properties commanding premium rates in prime locations.

Are property prices falling in Dubai?

While there have been fluctuations in property prices, including occasional declines, it’s important to note that the Dubai real estate market is dynamic and can be influenced by numerous factors. It’s advisable to stay updated on market trends and consult with real estate professionals for accurate insights.

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