Dubai, UAE – July 31, 2024: The Dubai property market has achieved an unprecedented milestone in the first half of 2024, with total sales value reaching AED 233 billion. This remarkable figure marks the highest H1 capital value growth in the Middle East, outperforming major global cities such as New York and Singapore.
Key Highlights:
- 6x the Value of 2020: The market value in H1 2024 is six times greater than the sales value recorded in 2020.
- Tripled vs 2021: Compared to 2021, the market value has tripled.
- Doubled vs 2022: The value has doubled since 2022.
- 30% Growth vs 2023: There is a 30% increase in sales value compared to 2023.
Yearly Sales Value Comparison:
- 2020: AED 31.66 billion
- 2021: AED 61.32 billion (93.6% increase)
- 2022: AED 114.35 billion (86.6% increase)
- 2023: AED 179.88 billion (57.2% increase)
- 2024: AED 232.76 billion (29.4% increase)
The data highlights the robust growth trajectory of Dubai's property market, positioning it as a leading real estate hub globally.
Capital Value Growth in H1 2024
DXB Interact reports that Dubai's prime residential market has experienced a 2.9% growth in capital value during the first half of the year. This growth rate surpasses that of other major cities like London, Singapore, and New York, which have seen negative growth. Dubai is now ranked fifth in the Prime Residential World Cities Index, trailing behind Lisbon, Amsterdam, Madrid, and Athens.
Driving Factors:
- High-Quality Investment Opportunities: Dubai offers luxurious homes with high-quality amenities, coupled with a vibrant lifestyle and excellent connectivity.
- Record-Breaking Transactions: Increased transaction volumes and values have been significant contributors.
- Strategic Developer Activity: Leading brands and developers are launching world-class projects to meet the growing demand.
Rental Market Performance
In addition to its strong sales performance, Dubai has also led global rankings in rental value growth, with a 12.1% increase. This surge outpaces cities like Bangkok and Lisbon and is driven by Dubai's strong lifestyle credentials and an influx of corporate relocations.
H2 2024 Outlook:
- Rental vs Capital Values: Rents are expected to continue outperforming capital values due to ongoing supply constraints in many world cities.
- Impact of Interest Rates: High interest rates have pushed potential buyers into the rental market. However, anticipated interest rate cuts in the second half of the year may lead some of these renters back to the sales market, potentially easing price pressures.
- Projected Growth: DXB Interact predicts an average capital value growth of 0.5% in the second half of the year, culminating in a total growth of 1.3% for 2024.
The Dubai real estate market is on a trajectory of continued growth, fueled by strong demand, strategic developments, and favorable economic conditions. The emirate remains a top destination for real estate investment, offering immense value to investors and end-users alike.