The Dubai real estate market is expected to see further growth by the end of the year.

Dubai real estate analysts are confident that 2024 will be a significant year for sector growth. Property sales continue to rise, and housing prices are showing impressive trends. According to experts at Elite Merit Real Estate, high demand and new developments, supported by innovative technologies, will be the main drivers of this success.

Surge in Sales Volumes

In July 2024, the total value of real estate transactions reached 49.6 billion AED ($13.5 billion), reflecting a 31.63% increase compared to July 2023. This growth is primarily attributed to high interest in luxury properties, especially in sought-after locations like Palm Jumeirah.

Market Trends and Dynamics

The first half of 2024 saw over 43,000 transactions, with a total value of approximately 122.9 billion AED ($33.5 billion), marking a 30% increase from the previous year. The rapid absorption of new housing also indicates strong demand: 80% of new developments launched since 2022 have already been sold.

Expected Increase in Supply

Significant growth in supply is anticipated in the coming years. It is projected that around 41,000 new units will enter the market in 2025, and 42,000 in 2026—an 80% increase compared to the projected supply of 27,000 units in 2024. While this influx may create a risk of oversupply, it is expected that robust demand and investor confidence will help mitigate potential issues.

Investment Opportunities

For investors, the 2024-2025 period presents a unique opportunity for strategic capital allocation. The luxury real estate segment remains appealing, particularly in prestigious areas like Downtown Dubai. At the same time, there is growing interest in mid-tier and affordable housing, especially in areas like Dubai Silicon Oasis and Jumeirah Village Circle, where attractive rental yields can be expected.

The Impact of Technology on the Market

The Dubai real estate market is undergoing significant transformation due to technological advancements. Innovations such as artificial intelligence and digital platforms are changing the ways properties are marketed and sold. Virtual tours and 3D floor plans are becoming standard practice, enhancing transparency and simplifying the property purchasing process.

Global Challenges and Stability

Despite the positive forecasts, the market faces several challenges, including the risk of oversupply and potential downward pressure on rental prices. The limited availability of land for new development is necessitating the adoption of sustainable growth strategies in the long term, which is expected to help stabilize the market beyond 2026.

In conclusion, the Dubai real estate market offers promising opportunities for investors in 2024, combining technological innovations with strategies for sustainable growth.