In Q2 2024, the value of real estate transactions in Dubai reached AED 123 billion ($33.5 billion), up 35.70% from Q2 2023, according to a report by Springfield Properties, one of the top real estate brokerages in the UAE.
With 48,220 recorded transactions, the total transaction volume increased significantly as well—a 60.06% year-over-year increase. Property values surged to AED 47.3 billion in May 2024, a noteworthy 39.12% increase from the previous year.
Property values and transaction volumes have increased at an unprecedented rate this quarter, indicating continued demand and increased investor confidence.
Exceptional resilience
Farooq Syed, CEO of Springfield Properties, said: “Dubai’s real estate market has demonstrated exceptional resilience and growth in the second quarter of 2024. Our data underscores the city’s strong investor confidence and its growing appeal as a global investment destination. The remarkable performance in May is a testament to Dubai’s robust market fundamentals and strategic urban development initiatives.”
The comparison of transactional values shows a consistent upward trend. With 30,000 transactions, the total transaction value in Q2 2023 was AED 90 billion. This increased to AED 110 billion with 40,000 transactions by Q1 2024. With 48,220 transactions and a transaction value of AED 123 billion as of Q2 2024, the market for real estate in Dubai is in robust health as evidenced by its continued growth.
The off-plan market performed well in terms of market dynamics, reaching a peak of 10,836 units transacted in May 2024. This suggests that off-plan transactions have continued to rise. Similar to the ready property market, which continued to show signs of investor confidence and growth, 8,818 units were transacted in May 2024.
Strategic investments
The resilience and growth of Dubai’s real estate market are fueled by important infrastructure projects, regulatory updates, and well-timed investments. According to the UAE Central Bank, the GDP will grow by 6.2% by 2025, which will reinforce the sector’s resiliency and economic contribution to the country. The market is also expected to be further supported by the expansion of Al Maktoum Airport, which is expected to raise property values and draw in both commercial and residential investments.
Syed highlighted the impact of Al Maktoum Airport’s expansion, recent updates to the Golden Visa programme, and robust sustainability initiatives, stating: “These developments, alongside Dubai’s strategic focus on regulatory frameworks and continuous infrastructure enhancements, have significantly bolstered the city’s appeal. Combined with our market insights, these elements reaffirm Dubai’s position as a prime destination for investors seeking enduring value and growth opportunities”.
Notable are the financial advantages of millionaire migration to Dubai. High-net-worth individuals continue to be drawn to the city; 6,700 new millionaires are expected by 2024. It is anticipated that this inflow will significantly expand the real estate market, highlighting Dubai’s allure as a top investment destination.
Looking ahead, the remaining months of 2024 hold the promise of sustained prosperity with an emphasis on high-end mixed-use community development, green and blue infrastructure, and sustainability. These calculated risks are intended to support a wide range of needs, offer contemporary living standards, and draw in a wide range of tenants and investors.
