Dubai Property Prices Rise for 15th Quarter in a Row

Property prices in Dubai have risen for the 15th consecutive quarter, with the January–March 2024 period showing continued growth, particularly in affordable and mid-market communities.

Key Drivers of Price Increases

Discovery Gardens, Sports City, and Dubailand apartments experienced the highest price increases. Analysts attribute this to strong demand from both residents and foreign investors. Villa owners are also capitalising on the market by renovating older units and reselling them at significantly higher prices.

Consistent Growth

Prathyusha Gurrapu, director and head of research and consultancy at Cushman & Wakefield Core, said that city-wide sales prices have risen for the 15th consecutive quarter. Sales prices are up by 20% year-on-year and 66% higher than the first quarter of 2020.

While apartment prices in prime areas like Palm Jumeirah, City Walk, Downtown Dubai, and Dubai Marina have seen more moderate increases, below 20% year-on-year, the overall trend remains positive.

Post-Pandemic Property Rally

Dubai’s property market recovery post-Covid-19 continues in 2024, attracting a large number of investors due to its relative affordability compared to other global cities. This large number of foreign workers is driving rental prices up, pushing more tenants towards home ownership.

According to Gurrapu, affordable and mid-market apartment communities saw sharper price increases: 37% in Discovery Gardens, 34% in Dubai Sports City, and 32% in Dubailand.

Mid-Affordable Communities Lead Growth

Haider Tuaima, director and head of real estate research at ValuStrat, reported a 24.7% year-on-year increase in capital values in the first quarter, driven by mid-affordable communities. Top performers included Discovery Gardens, The Greens, Palm Jumeirah, The Views, Town Square, Al Quoz Fourth, and Dubai Production City.

New Supply on the Horizon

ValuStrat data indicates that approximately 46,558 new units are expected to enter the market this year. As of the first quarter, completions included 5,770 apartments and 1,038 villas, representing 15% of the annual estimate. Additionally, around 86,000 apartments are under construction, with handovers expected by 2028.

Renovation Boosts Villa Prices

Data from Cushman & Wakefield Core shows villa districts like Jumeirah Village Circle, The Lakes, and Jumeirah Park see sale prices increase by over 20% year-on-year. The trend of renovating older villas and reselling them at higher prices has notably contributed to this surge.

These villa districts offer central locations with established schools and amenities. After upgrades, they command significant premiums, said Gurrapu.

Tuaima added that villa prices have reached a 10-year high, with a 29.6% year-on-year increase. About 21,230 villas are under construction, set for delivery by 2024.

Dubai’s real estate market shows no signs of slowing, driven by sustained demand and strategic investments in both new and existing properties.

Original article reference: Khaleej Times.

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