In a remarkable streak, Dubai’s property prices have surged for the 15th consecutive quarter, marking yet another milestone in the city’s real estate boom. The January-March 2024 period witnessed a robust increase, predominantly driven by the burgeoning demand in affordable and mid-market communities.
Analysts point to areas such as Discovery Gardens, Sports City, and Dubailand apartments as the epicenters of this surge, witnessing the highest spikes in prices. Notably, villa owners are capitalizing on this trend by renovating older units and reselling them at significantly higher rates to match the escalating demand.
Prathyusha Gurrapu, Director and Head of Research at Cushman & Wakefield Core, affirmed, “There are no signs of capital values slowing down yet, with city-wide sales prices rising for the 15th consecutive quarter.” Gurrapu emphasized that the prices have escalated by 20% year-on-year, with a staggering 66% increase since the first quarter of 2020, pre-Covid era.
Moreover, the rise in apartment prices, particularly in prime sub-markets like Palm Jumeirah and Dubai Marina, has moderated, with increases below 20% year-on-year. Despite this, property rallies initiated after the Covid-19 pandemic have persisted into 2024, offering prices that remain comparatively affordable, attracting a substantial influx of investors.
The surge in rental prices, driven by an influx of foreign workers, is gradually transitioning tenants into property owners. Gurrapu noted, “Affordable and mid-market apartment communities have seen a sharper increase, with Discovery Gardens leading the pack with a remarkable 37% surge, followed by Dubai Sports City (34%) and Dubailand (32%).”
Haider Tuaima, Director and Head of Real Estate Research at ValuStrat, highlighted a staggering 24.7% year-on-year surge in capital value in the first quarter, primarily fueled by mid-affordable communities. Top performers include Discovery Gardens, The Greens, and Palm Jumeirah, among others.
According to ValuStrat data, an estimated 46,558 newly-built units are set to enter the market in 2024. However, this accounts for only 15% of the preliminary estimates for the year, indicating a sustained demand-supply imbalance.
The trend of renovating and reselling older villas has significantly contributed to the surge in villa sales prices, particularly in areas like The Lakes and Jumeirah Park. Haider Tuaima noted that villas have reached a 10-year high in prime values, with a remarkable 29.6% year-on-year increase.
With approximately 21,230 villas under construction, slated for delivery by 2024, the Dubai property market continues to exhibit resilience and robust growth prospects, attracting investors from around the globe.
