Dubai’s real estate market is on an extraordinary upswing, driven by a substantial increase in capital inflows during the first quarter. It is projected that by 2025, high-net-worth individuals (HNWI) will contribute to a 24.6% increase in Dubai’s real estate market, propelling the ultra-luxury segment to unprecedented levels.

In the first quarter, the residential real estate market in Dubai reached $110 billion, boosted by a 55% rise in investment inflows, with 42% of new investors coming from international markets, according to Springfield Properties’ Q1 2024 Market Insights Report. Springfield Properties is a leading real estate brokerage in Dubai.

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“Building on the record-breaking success of 2023, Dubai’s residential market continued its upward trend in Q1 2024, with an impressive 37,134 transactions totaling $109.8 billion. This positive trajectory is set to intensify further with the waiver of the Dh1 million minimum down payment requirement for golden visa eligibility through real estate investment,” the report stated.

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“The first quarter of 2024 marked a significant milestone in Dubai’s real estate landscape with a notable rise in sales, reflecting strong investor confidence and market liquidity crucial for sustaining growth and competitiveness,” said Farooq Syed, CEO of Springfield Properties. “Our report underscores a growing demand for off-plan properties, indicating a strategic shift in investment preferences and highlighting the sector’s potential for capital appreciation and yield generation,” he added.

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The balance between off-plan and secondary market sales in this quarter highlights a mature and diverse real estate landscape, showcasing investor confidence and market stability.

Dubai’s strategic focus on regulatory frameworks and continuous infrastructure enhancements has significantly boosted the city’s attractiveness. Combined with market insights, these factors solidify Dubai’s status as a prime destination for investors seeking long-term value and growth opportunities.

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According to a separate study by ValuStrat, the rate of capital growth in the apartment market is gradually aligning with that of the villa market. ValuStrat’s Price Index (VPI) revealed a 24.7% annual increase and 2.1% monthly increase in Dubai’s residential capital values in March, reaching 167.5 points. Comparing to the January 2021 baseline of 100 points, villas scored 211 points and apartments scored 139.2 points.

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Month-over-month, apartment prices rose by 1.9%, achieving a record annual growth of 20.1%. Conversely, capital gains on villas were up by 2.4% from February last year and 29.6% from the prior year.

Discovery Gardens saw the highest annual growth in apartment capital at 32.6%, followed by Town Square (24.5%), The Views (24.8%), Palm Jumeirah (29%), and The Greens (29.8%).

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Palm Jumeirah apartments have experienced an exceptional growth rate of 83.6%, outpacing The Greens (55.2%) and Jumeirah Beach Residence (52.2%).

Villas in prominent communities like Palm Jumeirah and Jumeirah Islands are experiencing rapid growth, up 37.7% from the previous year. Other areas such as Arabian Ranches (29.2%), Mudon (30.2%), and Dubai Hills Estate (34.8%) also demonstrate strong growth.

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Palm Jumeirah (125.7%) and Jumeirah Islands (143.5%) recorded the highest villa growth rates since January 2021.

Fifteen ready properties valued at more than Dh30 million were sold in Jumeirah Bay Island, Palm Jumeirah, Emirates Hills, Jumeirah Golf Estates, and Dubai Hills Estate.

Off-plan Oqood (contract) registrations saw an 18.2% monthly growth, representing a 14% annual increase. In March 2024, Emaar led Oqood transactions at 14.9%, followed by Sobha (5.6%), Azizi (6%), and Damac (10.9%).

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Top transacted off-plan locations included Jumeirah Village Circle (10.9%), Zabeel First (6%), Meydan One (5.7%), and Business Bay (5.6%). Ready-to-move-in sales were dominated by Jumeirah Village Circle (9.3%), followed by Business Bay (7.4%), Dubai Marina (6%), and Downtown Dubai (5.3%).