Dubai’s real estate market experienced a significant boost in the first six months of 2024, with sales transactions totaling AED 103.8 billion.
Price Surge: Off-plan property prices in Dubai are expected to increase by 15% in the second half of 2024.
Rising Construction Costs: Ongoing global supply chain issues, economic instability, and geopolitical events have led to a 2-3% rise in construction costs, affecting property prices.
International Interest: Economic instability elsewhere drives international investors to Dubai, seeking stable and high-return investments, fueling demand and price hikes.
Regulatory Boost: Stricter regulations by the Dubai Land Department (DLD) require developers to use escrow accounts, enhancing financial transparency and reducing project delays. This has led to a 33% increase in off-plan sales in June.
Abu Dhabi Market: The capital also sees a rise in property prices, with affordable apartments and villas increasing by up to 10% and luxury properties by over 6-10%, particularly in waterfront areas like Al Reem Island and Yas Island.
Ras Al Khaimah (RAK): Emerging as a hotspot, with high-end property prices expected to surge by 50% due to new developments like the anticipated casino. RAK’s residential market has seen a 20-25% increase over the past eight months.
Dubai’s off-plan property market is poised for significant growth in the latter half of 2024, driven by rising construction costs and strong international demand. Buyers and investors should stay updated on these trends to navigate this dynamic market effectively.
