Episode 55: Is the boat still afloat?

Luke and Simon were joined recently by property data guru Zhann Jochinke from Property Monitor for an honest chat about the Dubai market’s state of play over the last 12 months.

They covered a lot of ground – including how May 2024 set a new benchmark for transactions. Despite a brief slowdown in activity during a two-week period, the market rebounded spectacularly, culminating in over 17,000 transactions for the month. 

This marked a staggering 20% increase over the previous record set in 2009, highlighting the resilience and dynamism of the Dubai property sector.

The rocketing rise of off-plan

One of the most notable trends they discussed is the surge in interest in off-plan properties. 

Approximately 67% of the transactions recorded were for off-plan developments, reflecting a growing preference among buyers for new properties. This trend can be attributed to several factors, including competitive pricing, flexible payment plans, and a strong demand for modern living spaces in prime locations.

Developers in Dubai have been quick to respond to market demands by offering a diverse range of options that cater to various buyer preferences. The allure of new developments, particularly in sought-after areas such as Dubai Marina, Downtown Dubai, and the Palm Jumeirah, continues to attract significant interest. 

However, they pointed to emerging neighbourhoods like Dubai South and Dubai Creek Harbour are also gaining traction, as new projects are launched to meet the evolving needs of buyers.

Favourable economic winds

The strong economic environment in Dubai plays a crucial role in this real estate boom. 

Continued investment in infrastructure and tourism has bolstered the city’s appeal as a global hub, drawing both local and international buyers. The overall sentiment in the market remains positive, with many investors recognizing the potential for long-term growth and capital appreciation.

In addition to the sales market, the rental sector is also thriving. Rental prices have seen an upward trend, particularly in popular areas, as tenants seek larger living spaces and enhanced amenities. This demand for more spacious accommodations has driven interest in larger apartments and villas, further contributing to the overall vibrancy of the market. Landlords are benefiting from the current dynamics, with many able to capitalize on rising rental prices.

As we look ahead to the remainder of 2024, the guys predict that the market will continue to flourish. 

Opportunities on all sides

The introduction of new projects is expected to sustain momentum, while the influx of new residents into Dubai will further drive demand for housing. Additionally, the anticipated entry of more international buyers into the market will enhance the competitive landscape, as the city’s reputation as a desirable place to live and invest continues to grow.

For both buyers and sellers, they agreed the current market conditions present a unique opportunity. 

Buyers can take advantage of the variety of options available and favorable financing terms, making it an attractive time to invest in real estate. On the other hand, sellers can benefit from the high demand and rising prices, allowing them to capitalise on their investments. 

Download our 2024 Dubai Real Estate Investment Guide