Dubai’s property market has experienced a remarkable 15th consecutive quarter of price growth from January to March 2024, primarily fueled by increased demand in affordable and mid-market communities.

Rising Prices in Key Areas

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Analysts highlight that Discovery Gardens, Sports City, and Dubailand apartments saw the most significant price hikes, thanks to strong interest from both residents and foreign investors. Villa owners across the city are responding to this demand by refurbishing older properties and selling them at substantially higher prices.

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Prathyusha Gurrapu, Director and Head of Research and Consultancy at Cushman & Wakefield Core, commented on the market’s momentum: “There are no signs of capital values slowing down yet. City-wide sales prices have increased for the 15th consecutive quarter, showing a 20% year-on-year rise and a 66% increase from the first quarter of 2020, pre-COVID-19.”

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Gurrapu also noted that while apartment prices have seen moderate increases, prime areas such as Palm Jumeirah, City Walk, Downtown Dubai, and Dubai Marina have experienced sales price growth of less than 20% year-on-year.

Post-Pandemic Property Boom

The property surge that started post-COVID-19 continues in 2024, driven by relatively lower prices compared to other global cities, which attracts many investors. As rental prices climb due to an influx of foreign workers, more tenants are opting to purchase properties.

“Affordable and mid-market apartment communities have witnessed sharper price increases, with Discovery Gardens up 37%, Dubai Sports City 34%, and Dubailand 32%,” Gurrapu reported.

Mid-Affordable Communities Lead Growth

Haider Tuaima, Director and Head of Real Estate Research at ValuStrat, confirmed a 24.7% year-on-year increase in capital values during the first quarter, led by mid-affordable communities. Tuaima identified top-performing areas, including Discovery Gardens, The Greens, Palm Jumeirah, The Views, Town Square, Al Quoz Fourth, and Dubai Production City.

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ValuStrat data indicates that 46,558 new homes are expected to hit the market this year, with 5,770 apartments and 1,038 villas completed in the first quarter, representing 15% of the estimated completions for 2024. Approximately 86,000 apartments are currently under construction, with handovers projected for 2028.

Villa Market Dynamics

Cushman & Wakefield Core’s data shows that most villa districts saw over 20% year-on-year price increases, particularly in Jumeirah Village Circle, The Lakes, and Jumeirah Park. The trend of renovating older villas to sell at higher prices has notably driven up the average prices in these areas. These well-located districts, with established schools and amenities, can command premium prices after upgrades.

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Haider Tuaima also highlighted the resilience of villa prices, which saw a 29.6% year-on-year increase, reaching a decade high in prime villa prices. According to ValuStrat, around 21,230 villas are under construction in Dubai, with completions slated for 2024.

Conclusion

Dubai’s property market continues to thrive, with sustained demand and strategic refurbishments driving price growth. The market’s resilience and attractiveness to investors position it for continued expansion in the coming years.