2024 Projections: Dubai’s property prices set to rise 5-7%, with Abu Dhabi expecting a solid 3-5% increase, say analysts. In the initial nine months of 2023, Dubai saw 116,116 new property deals totaling approximately Dh429.6 billion
Expect property prices in the UAE to keep going up because more people want to buy. But, some experts think there might be a change in the luxury market in the second half of 2024.
In Dubai, where lots of business and tourists come, the prices of homes are expected to go up by 5-7%, and in Abu Dhabi, they’ll go up by 3-5%, says Haider Tuaima from ValuStrat. He thinks the next few months will be good for buying and renting homes, with prices going up. But around the middle of next year, maybe in the summer, things might change. The really fancy, expensive homes might be the first to be affected. We’re not sure if the prices will just stay steady or start going down. There’s a good chance we’ll see some changes in the fancy home market.
The property market in the UAE stayed strong this year, with more people buying homes in Dubai and Abu Dhabi. The government did things like giving residency permits to retired and remote workers, and the economy grew overall. In the first nine months of 2023, Dubai had 116,116 new home deals, adding up to about Dh429.6 billion ($117 billion), according to the latest information from the Dubai Land Department. The number of deals went up by 33.8% compared to last year, and the value of these deals increased by more than 36.7%. Even in Abu Dhabi, more people wanted to buy homes, especially from within the country and the GCC. This shows that the property market is doing well in both Dubai and Abu Dhabi.
More Buyers, Higher Prices!
The value of property deals more than doubled in six months, and the number of transactions, like buying and getting mortgages, went up by 41% compared to last year.
In Dubai, home prices went up a lot – by 19.6% in the third quarter. Apartments and villas became more expensive by around 19.7% and 18.9%, according to CBRE, a company that studies these things.
In November, the prices for apartments and villas in Dubai increased even more, by 18.3% and 22.2%, respectively. Rich people from around the world are also spending a lot of money to buy homes in the UAE, which is helping the real estate market grow.
A survey found that rich buyers plan to spend an average of $2.8 million on property in Abu Dhabi because the economy is doing well, and the city has good infrastructure.
Experts say that things are looking good for the UAE’s economy. Businesses that are not related to oil have been growing a lot, and they are expected to keep growing in the next twelve months. But, in some places, there might be too many properties for sale, which could stop prices from going up a lot.
The UAE’s economy is expected to grow by 3% this year and 4% next year, thanks to strong growth in many sectors like trade, industry, real estate, and tourism, according to a report by Standard & Poor’s.
Investor Interest
As the world opens up, more people are expected to travel, and investments in Dubai are likely to increase,” said Ravi Menon, co-chairman of Sobha Group, currently working on the $4 billion Sobha Hartland project in Dubai.
“Our biggest investors usually come from India, China, the UK, the CIS markets, and the rest of Europe, and we think this trend will keep going.”
Investors from Latin America, Mexico, and Canada are also expected to put money into Dubai’s property market, making the demand even higher.
Chinese investors, recovering from the pandemic, are also expected to show more interest next year.
Nick Witty, CEO of Chestertons Mena, believes the Dubai real estate market will stay positive. He thinks people will prefer ready-to-move-in homes over properties still being built because they “offer quicker returns on investment since they can be rented out right away.
In the first nine months of this year, off-plan property in dubai sales added up to Dh100 billion, while sales of homes that are ready to move into reached Dh104.9 billion, as reported by Knight Frank in November.
More Demand Expected in Dubai & Abu Dhabi!
Next year, there will be new homes available, but experts say there won’t be enough to meet the demand, keeping prices high. In the next five to six years, developers plan to finish 120,000 homes in Dubai, with 20,000 to 30,000 ready each year. Abu Dhabi is expecting 5,000 new homes next year. This year, about 45% of Dubai’s planned homes were finished on time, while 55% were delayed. Analysts think this delay is good because if all the homes were ready, there would be too many, and prices could drop. Big developers like Damac Group, DANUBE, Emaar Properties, and Sobha are working on new projects due to strong demand. In November, Aldar made Dh3.1 billion from selling 786 homes in Dubai, and they sold out quickly due to high demand. More new homes are expected in 2024, but demand is still higher than supply, so property prices should stay steady.
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