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According to Betterhomes' latest market report, 40,584 property transactions worth AED 104 billion took place in Dubai in Q2 2024, representing a 49% increase over the same
Dubai's real estate market maintained a solid performance in the second quarter of 2024 with record transaction volumes and rising prices in both sales and leasing.
According to the latest market report from Betterhomes, 40,584 property transactions worth AED 104 billion took place in Dubai in Q2 2024, a 49% increase from the same period last year.
"As we reflect on the remarkable journey of Dubai's real estate market in Q2 2024, it is clear that we are in a period of unprecedented growth and transformation. Record after record has become the new norm and we couldn't be more excited to share these milestones with you. In the past quarter alone, we recorded more than 40,000 transactions with the Dubai Land Department (DLD)," said Richard Waind, CEO of Betterhomes.
The report highlights that villa transactions on the secondary market recorded a 36% year-on-year increase and a 23% quarter-on-quarter increase. This sharp increase is attributed to tenants opting for home ownership in response to rising rents.
Off-plan sales have also seen a significant increase, with more than 200 residential projects launched since the beginning of the year, adding nearly 50,000 units to the market. This reflects strong developer confidence and sustained demand from end users and investors.
The average price per square meter in the city reached AED 1,380 in Q2, representing an 18% increase from Q2 2023 and a 4% increase from Q1 2024. This represents a "stabilizing trend" in property prices in the city.
Some areas have seen exceptional price growth, for example Palm Jumeirah Fronds has seen a staggering 75 per cent year-on-year increase in villa prices. Other notable locations included Jumeirah Park (up 45 per cent year-on-year) and Arabian Ranches (up 22 per cent year-on-year).
The rental market saw 106,181 transactions in the second quarter, but this represents a 21% decline on the previous period.
The report suggests that this decline is due to tenants moving into owner-occupation, high occupancy rates limiting turnover and a lack of new supply of rental housing.
Of the total number of lease transactions, 39% were new contracts, while 61% were renewals. Popular areas for new leases included Deira, Bur Dubai, Jumeirah Village Circle, International City and Business Bay.
Rental yields in the city continue to outperform global markets, with average gross yields of 7.64% for apartments and 5.23% for villas and townhouses. Some areas, such as Dubai Investments Park and International City, offered yields in excess of 9 per cent.
Dubai's luxury real estate market showed significant activity in Q2 2024.
There were 664 property sales transactions valued at AED 15 million and above, with a significant concentration in areas such as The Oasis (by Emaar), Palm Jumeirah and Mohammed Bin Rashid Al Maktoum City.
Source: Arabian Business
