Asteco’s Q2 2024 Dubai Real Estate Report offers an in-depth analysis of the current and future landscape of the city’s property market, highlighting its robust dynamism and key trends.
Surge in Supply
Asteco forecasts that Dubai’s real estate sector will see the addition of 25,000 new homes by the end of 2024. This surge reflects the market’s expansion, fueled by Dubai’s strong economic performance and its ongoing appeal to expatriates. Despite a minor slowdown in the completion of new residential units—6,750 were finished in Q2 2024—the pace of new project launches remains vigorous. From low-rise buildings to extensive master-planned communities, the variety of new developments promises to diversify housing options throughout the city. Although some projects may be delayed until 2025, the influx of new supply will continue to shape Dubai’s real estate landscape.
Rental Market Dynamics
Rental rates for apartments and villas have risen quarterly by 3% and 2%, respectively. However, annual growth has moderated, with apartments increasing by 8% and villas by 4%. This trend is partly due to the revised RERA rental index, which has enabled landlords to impose higher rent increases upon lease renewals.
Office and Sales Market Performance
The office rental market, especially for Grade A spaces, remains strong due to high demand and limited supply, which is expected to continue until new office spaces become available. In the sales market, Dubai has experienced a 2% increase in average sales prices in Q2 2024. Areas like Jumeirah Village and Business Bay have seen above-average price growth, driven by increasing demand and the introduction of high-quality developments.