Dubai Real Estate Market Forecast for 2024
Based on Figure 3 and Table 5, the outlook for the Dubai’s real estate market in 2024 is optimistic; this is due to the improved and stable economic factors and strategic directions of the government as well as the continuous interest of the investors. Here are some key trends and forecasts for the coming year:
Increased Property Transactions
Property transactions are also projected to increase in the next couple of years, especially in 2024. This is after registering 31,920 transactions amounting to AED 147 billion in Q4 2023; thus the market is not relenting. The continuation of this trend is attributed to the sustained market for housing units and buildings for residences and business including in the premier locations.
Price Appreciation
It is expected that property prices will keep on rising in the future as it has been witnessed in the past few years. It is expected that the average price per square meter will continue to rise over the years as the demand for space retains its growth rate especially in the luxury segment. Places such as Palm Jumeirah, Downtown Dubai and Dubai Marina will register the most abrupt increase in prices because units available in these regions are few but the demand is high.
Foreign Investment Surge
Continued expansion of the investor appeal in Dubai is likely to be experienced among the foreigners due to the sound government policies on the investor, good tax laws, and favorable financing techniques. Issues such as the issue of long-term visas and the fact that non-residents are now allowed to own property without any restriction are some of the aspects that have influenced the foreign investment.
Robust Rental Market
The rental market in Dubai will continue to thrive, with high rental yields making it an attractive option for investors. Rental yields are expected to remain stable, with apartments yielding around 7.25% and villas and townhouses providing returns of approximately 5.26%.
Expansion of Luxury Segment
The luxury property segment is expected to have a kind of boost, particularly from first-time homeowners who are high net worth individuals that are eyeing to own a luxury property. New supply comprises the Palm Jabal Ali and new luxury projects in Downtown Dubai, Dubai Marina etc and it is believed to generate considerable attention.
New Developments and Infrastructure Projects
There are expectations that many new projects as well as infrastructural developments will be initiated in Dubai. Delivers of new units are predicted to be about 64,000 in 2024 of which Jumeirah Village Circle is most in units under construction. They will address the demographic increases and expand the forms of real estate.
Sustainable and Smart Properties
Sustainability as well as smart technologies within homes, especially on new constructions will be more common. There is more demand on the incorporation of green building practices and innovative technologies in building structures by developers.
Government Initiatives and Economic Growth
Subsequently, Dubai’s government remains one of the most active market players in the sphere of real estate as it assists the market through various strategic interventions in a bid to enhance economic performance and investors’ confidence. Future developments such as Dubai Urban Master Plan 2040 and Dubai Industrial Strategy 2030 will improve the infrastructural background of the city as well as its appeal.
The General and Dubai’s property market will experience a favourable 2024 with higher prices, turnover and foreign direct investment. Its favorable position on the map, economic policies that encourage the construction of new houses and continuous infrastructural development is another reason makes it most attractive in real estate investment.