Dubai’s real estate market continues to soar, achieving remarkable milestones in June 2024. This period has witnessed significant growth in transaction volumes and values, underscoring Dubai’s appeal as a prime destination for investors and homebuyers. This comprehensive blog post delves into the market performance, key trends, popular areas, property types, buyer preferences, rental market insights, and the factors driving this dynamic growth.

Market Performance and Trends

Unprecedented Transaction Volume and Value

In June 2024, Dubai’s real estate market experienced an unprecedented surge, marking the highest transaction volume and value for this month in a decade. The market recorded 10,419 transactions, reflecting a 17.78% increase from June 2022. The total value of these transactions reached AED 30.41 billion, a 34.1% rise from the previous year.

Popular Areas Driving Growth

Key areas driving this impressive growth include Dubai Marina, Palm Jumeirah, and Dubai Creek Harbour. These locations, known for their luxury properties and high demand, continue to attract significant investor interest. The high-end properties in these areas offer unmatched amenities and lifestyles, making them the top choices for discerning buyers and investors.

Property Types and Buyer Preferences

Apartments and Villas

The market’s composition in June showed a strong preference for apartments, with 57.5% of buyers looking for apartment units, particularly two-bedroom and one-bedroom configurations. Villas and townhouses attracted 42.5% of the buyers, with Dubai Hills Estate and Arabian Ranches being popular choices. These preferences highlight the demand for both urban living and spacious, family-oriented homes.

Off-Plan vs. Ready Properties

Off-plan properties have been a major growth driver, constituting 49.6% of the total sales transactions and 41.5% of the transaction value. This segment saw a 46.6% year-on-year increase in sales volume, reflecting strong investor confidence in Dubai’s future development projects. The appeal of off-plan properties lies in their potential for higher returns and the opportunity to customize living spaces.

Rental Market Insights

The rental market also experienced robust activity, with 78.5% of tenants searching for apartments and 21.5% for villas or townhouses. A significant number of tenants preferred furnished apartments, indicating a trend towards convenience and immediate occupancy. One-bedroom units were the most sought-after in the rental market, followed by two-bedroom units and studios.

Factors Driving Market Growth

Government Initiatives

Progressive government policies, including long-term residency visas and business-friendly reforms, have significantly boosted investor confidence. These initiatives aim to make Dubai a more attractive place for global investors and expatriates. The introduction of the Golden Visa, allowing long-term residency for investors and their families, has been particularly influential in driving real estate investments.

Technological Advancements

The integration of advanced technologies in property management and sales processes has enhanced overall market efficiency and customer experience, making Dubai a leader in smart real estate solutions. Innovations such as virtual property tours, blockchain-based property transactions, and smart home technologies are transforming the real estate landscape in Dubai.

Demographic Shifts

A younger, tech-savvy demographic is increasingly driving demand for modern, sustainable, and luxurious properties. This shift has influenced market offerings, leading to a higher demand for properties with integrated smart home systems and sustainable features. The preference for eco-friendly homes and developments with green spaces is shaping new real estate projects.

Key Metrics and Performance Indicators

Sales Volume and Value by Property Type

• Apartments: 10,644 transactions, with a sales value of AED 20 billion, reflecting a 29.7% increase from June 2023.
• Villas: 1,615 transactions, with a sales value of AED 8.5 billion, marking a 1.5% increase from June 2023.
• Commercial Properties: 298 transactions, with a sales value of AED 794.1 million, showing an 11.2% increase from June 2023.
• Plots: 1,813 transactions, with a sales value of AED 17 billion, a significant 363.7% increase from June 2023.

Property Prices

• Apartments: Average price of AED 1.2 million, a 6.3% decrease from June 2023.
• Villas: Average price of AED 3.6 million, a 29.1% increase from June 2023.
• Commercial Properties: Average price of AED 1.4 million, a 20.3% increase from June 2023.
• Plots: Average price of AED 5.5 million, a 7.7% increase from June 2023.

Total Sales Value

The total sales value for June 2024 reached AED 46.4 billion, a 52.3% increase from June 2023. This substantial growth underscores the market’s strength and the sustained demand for real estate in Dubai.

Rental Prices

• Apartments: Average rental price of AED 76,000, a 20.6% increase from June 2023.
• Villas: Average rental price of AED 165,000, a 3.1% increase from June 2023.
• Commercial Properties: Average rental price of AED 55,000, a 42.2% decrease from June 2023.

Top Performing Areas and Projects

Top 5 Performing Areas – June 2024

1. Dubai Marina: High demand for luxury waterfront apartments.
2. Palm Jumeirah: Prestigious villas and high-end apartments.
3. Dubai Creek Harbour: Modern developments with stunning views.
4. Downtown Dubai: Iconic properties near Burj Khalifa and Dubai Mall.
5. Business Bay: Prime location for commercial and residential properties.

Top 5 Projects with Most Expensive Sold Apartments

1. Bulgari Lighthouse Dubai, Island 2: AED 148 million.
2. Six Senses Residences The Palm, Palm Jumeirah: AED 122 million.
3. Serenia Living – Tower 3, Palm Jumeirah: AED 110 million.
4. Orla Infinity By Omniyat, Palm Jumeirah: AED 75 million.
5. Casa Canal, Dubai Water Canal: AED 56 million.

Top 5 Areas with Most Expensive Sold Villas

1. The Waterside Villas By Ellington, Wadi Al Safa 3: AED 39 million.
2. Plagette 32, Al Hebiah Fourth: AED 34 million.
3. Serenity Mansions, Tilal Al Ghaf: AED 29 million.
4. Mohammed Bin Rashid Al Maktoum City- District One, Phase 1, MBR District 1: AED 28 million.
5. The Oasis – Mirage, Me’Aisem Second: AED 23 million.

Best Selling Projects in June 2024

Off-Plan Apartments

• Bayz 101 By Danube: 305 units, AED 662.5 million.
• Sobha One: 280 units, AED 644.8 million.
• Cove Living Residence By Imtiaz: 231 units, AED 176.4 million.
• Skyhills Residences: 221 units, AED 233.8 million.
• Valo: 204 units, AED 494.3 million.

Off-Plan Villas

• Haven By Aldar: 116 units, AED 653.3 million.
• The Acres: 137 units, AED 1 billion.
• Greenway: 113 units, AED 421.6 million.
• Nad Al Sheba Gardens Phase 4: 84 units, AED 384.6 million.
• South Bay 5 Premium: 80 units, AED 297.5 million.

Ready Apartments

• Remraam: 362 units, AED 27.4 million.
• Lakeside: 321 units, AED 10.8 million.
• Downtown Views II: 311 units, AED 17.8 million.
• Topaz Avenue: 304 units, AED 42.7 million.
• Upside Living: 273 units, AED 39.7 million.

Ready Villas

• Nad Al Sheba Gardens Phase 4: 87 units, AED 1.3 billion.
• La Rosa 5: 267 units, AED 1.3 million.
• The Fields At D11 – MBRMC: 194 units, AED 49.8 million.
• Reem Townhouses: 133 units, AED 34.3 million.
• Cherrywoods: 123 units, AED 37.2 million.

Factors Contributing to Market Growth

Government Initiatives

Dubai’s government has implemented several progressive policies to attract investors and expatriates. Long-term residency visas, including the Golden Visa, have made Dubai a more appealing destination for global investors. These visas offer long-term stability and the ability to sponsor family members, adding to the allure of investing in Dubai’s real estate market.

Technological Advancements

Technological innovations have revolutionized Dubai’s real estate market. Virtual property tours, blockchain-based transactions, and smart home technologies have enhanced market efficiency and customer experience. These advancements have made the buying and selling process more transparent and secure, attracting more investors to the market.

Demographic Shifts

A younger, tech-savvy demographic is driving demand for modern, sustainable, and luxurious properties. This demographic shift has influenced market offerings, leading to a higher demand for properties with integrated smart home systems and sustainable features. The preference for eco-friendly homes and developments with green spaces is shaping new real estate projects.