Dubai Market Growing up in 2024

Dubai Real Estate Market Set For Continued Growth In 2024

Chairman Lewis Allsopp, who has over two decades experience in Dubai real estate, predicts average sales prices will increase 6-10 percent in 2024.

In 2023, the Dubai property market witnessed a remarkable year with total sales reaching an all-time high of over AED407 billion, representing a year-on-year growth of 56%. As the emirate enters the new year, Allsopp & Allsopp, a leading residential agency, is forecasting further strength across the sector, as per their Dubai Property Market report.

Chairman Lewis Allsopp, who has over two decades of experience in Dubai real estate, predicts average sales prices will increase 6 - 10 percent in 2024.

The speaker expressed optimism for the Dubai real estate market in 2024, citing renewed opportunities and a positive outlook for buyers and investors. The speaker also noted that attractive borrowing conditions are already starting to appear within the market, which is expected to lead to an increase in residential sales transaction volume, renewed investor interest, and a stronger focus on homeownership for first-time buyers.

According to Allsopp, improved mortgage affordability is expected to drive greater demand and boost transaction volume in the Dubai real estate market . Smaller monthly repayments make buying a more attractive proposition compared to renting, which in turn provides buyers with higher purchasing power to meet deposit requirements on properties priced from AED2-5 million. These mid-market homes are expected to see brisk activity as first-time purchasers are lured into the market . Investors are also expected to benefit from lower financing costs, leading to renewed flows of capital into Dubai real estate . Luxury homes above AED10 million are predicted to see above-average capital appreciation, bolstered by limited new supply in the city’s most prestigious locales.

Palm Jumeirah tops sales in 2023

In 2023, Palm Jumeirah remained the top location for sales over this budget, with 168 transactions. Other high-end communities that surpassed 30 deals included Mohammed Bin Rashid City, Tilal Al Ghaf, and Jumeirah Bay Island. With prices edging closer to equilibrium after multi-year climbs, transaction numbers are forecast to rise in kind. The secondary market looks particularly attractive to value-conscious investors and owner-occupiers. Allsopp noted the premium for off-plan properties is shrinking, reflecting their trend towards maturity in certain areas. “With the pricing gap between ready, secondary homes, and off-plan properties becoming smaller, buyers/investors will see greater returns and short-term opportunities within the secondary market, leading to potential demand across all price brackets,” he said. On the renting front, rental yields remain robust for landlords. While double-digit hikes cannot be ruled out, some tenants may secure relief via staggered payments, especially as space emerges in newer communities. One sector with scant suitable supply is commercial real estate. Allsopp predicted both prices and rents will climb 10-15 percent for Grade A offices, underpinned by over 90 percent occupancy and steady corporate expansion in the emirate.

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