Dubai set to record handover of 38,174 new homes this year

Dubai is estimated to register a handover of 38,174 new homes this year as the real estate market booms , according to a new report from consultancy ValuStrat. Total estimated completions as of the first half of this year stood at 6,939 apartments and 2,145 villas , equivalent to 20 per cent of preliminary estimates for the whole of 2024, the consultancy said. Notable apartment completions during the second quarter included Creek Views 1 and 2 with 634 and 587 apartments, while major villa completions included Murroj Al Furjan West with 161 units and Silver Springs 3 in Damac Hills with 258 villas, according to the report. About 91,718 apartments and 28,385 villas are currently under construction in Dubai with promised handovers by 2028, ValuStrat estimated. Of these projects, 10 per cent are located in Jumeirah Village Circle, with another 10 per cent located in Business Bay, followed by Jumeirah Lakes Towers with 5 per cent, the data found. “ Dubai’s real estate market continues to thrive with strong demand. The upwards trend in valuations and rents across various segments shows that the market cycle is in its upswing stage,” said Haider Tuaima, director and head of real estate research at ValuStrat. “As the market stabilises and matures, monitoring these trends and adjusting strategies accordingly will be crucial to maximising investment returns.” The UAE property market has been booming in recent years on the back of government initiatives such as residency permits for retired and remote workers and the expansion of the 10-year golden visa programme. Overall growth in the UAE’s economy due to diversification efforts is also supporting the property market. Dubai's luxury prime market hit a record last year as sales of $10 million-plus homes nearly doubled to $7.6 billion, performing better than London and New York, Knight Frank said in a report earlier this year. The surge in global wealth creation has significantly impacted the Dubai real estate market. As affluent individuals seek to diversify and secure their assets amid geopolitical volatility, Dubai has emerged as a prime destination, according to real estate broker Betterhomes. Dubai’s villa market remained robust, with capital values marking an annual increase of 33.4 per cent and a slightly higher quarterly growth of 7.3 per cent, according to the ValuStrat report. The top annual performers were Palm Jumeirah, Jumeirah Islands, Dubai Hills Estate and Emirates Hills. Valuations of apartments also continued to rise, increasing by 5.4 per cent quarterly and 23.4 per cent annually. The top annual performers were Discovery Gardens, The Greens, Palm Jumeirah, The Views, Al Quoz Fourth, Town Square and Dubailand Residence Complex, the research revealed. Notably, Palm Jumeirah surpassed the 2014 price peaks for apartments in Dubai, the first apartment location to do so, according to ValuStrat data. “The record rainfalls in April caused severe flooding in many areas of Dubai, but this did not significantly impact valuations in the subsequent months,” Mr Tuaima said. “The prompt response from master developers and authorities effectively contained and controlled the damage in affected communities.” In the second quarter, the Dubai real estate market witnessed 7,921 mortgage transactions across all asset classes compared with 13,834 cash transactions of ready properties, the report identified. The total sales value attributed to mortgage transactions stood at Dh26 billion ($7.1 billion), with cash transactions totalling Dh35 billion. Transactions of off-plan registrations grew by 61.4 per cent annually and 19.1 per cent quarterly, equivalent to investments worth Dh59.9 billion, according to ValuStrat estimates. Top off-plan locations transacted during the quarter included projects in Jumeirah Village Circle, Business Bay and Meydan One. The second quarter recorded 11,508 ready secondary home transactions, down 1.7 per cent quarterly but up 4.8 per cent annually, equivalent to investments worth Dh29.3 billion. Thirty-seven per cent of all ready home sales were priced less than Dh1 million, compared with 40.8 per cent last year, ValuStrat said. There were 55 sales of homes worth over Dh30 million, compared to 63 during the same period last year, the consultancy added. Most transacted locations for ready properties were Jumeirah Village Circle, Business Bay and Dubai Marina, the report found. Dubai's residential rental values grew by 2.7 per cent quarterly and 10.8 per cent annually, ValuStrat estimated. Villa rents rose 1.1 per cent quarterly and 3.5 per cent annually to an average yearly rent of Dh408,200, while apartment asking rents grew 16.9 per cent annually and 3.8 per cent quarter on quarter, reaching an average of Dh89,100. “The average asking rents per annum for apartments were studios at Dh59,000, 1-bed at Dh86,000, 2-beds at Dh123,000, and 3-beds were Dh193,000,” the report said. “The average annual rents for villas were 3-beds at Dh321,000, 4-beds at Dh401,000 and 5-beds at Dh503,000.” Residential occupancy in Dubai was estimated at 87.7 per cent during the first half of 2024, the research found.

Dubai set to record handover of 38,174 new homes this year

City records upward trend in valuations and rents as Palm Jumeirah surpasses the 2014 price peak for apartments, according to ValuStrat report