(MENAFN- Mid-East)
Engel & Völkers' June Report Reveals Resilience Across Residential and Commercial Sectors.
Dubai,July 2024 – Engel & Völkers Middle East, known for its residential and commercial Real estate services in the premium segment, has released its latest market report for June, highlighting the ongoing resilience and growth of Dubai's real estate market. Despite a pullback from May's record-breaking performance, June saw a substantial increase in residential transactions, while the commercial market demonstrated strong underlying strength and resilience.
“Our June report underscores the dynamic and resilient nature of Dubai's real estate market; the ongoing growth in both residential and commercial sectors reflects the city's strong economic fundamentals and its attractiveness to global investors. We remain optimistic about the market's potential and look forward to continued success in the coming months,” said Daniel Hadi, CEO at Engel & Völkers Middle East.
Residential Market Overview:
In June, Dubai's real estate market witnessed 13,436 sales transactions, marking a significant 43.4% increase year on year. This robust growth was largely driven by the primary market, where transactions surged by 61.2%. The secondary market also showed strong performance, with a 23.8% rise in transactions, reflecting broad-based market expansion.
Apartments remained the top choice for many buyers, with one-bedroom units accounting for over 30% of transactions. Notably, more than 50% of sales were priced between AED 750K and AED 1.5M, underscoring the market's accessibility and wide appeal. Average prices continued to climb in key communities, indicating sustained demand. Despite the traditionally quieter summer months approaching, early signs suggest that this year's slowdown might be less pronounced, particularly in the primary market.
The top five communities by sales transactions were Arabian Ranches, Business Bay, Damac Hills, Downtown Dubai, and Dubai Hills Estate.
Commercial Market Insights:
On the commercial front, June recorded a 15% year-on-year decline in sales transactions. However, this apparent dip was due to a significant reduction in hotel apartment transactions. Excluding this outlier, there was a notable 17% increase in transactions. The total value of sales reached AED 7.49 billion, a 31% year on year increase, highlighting the market's underlying strength and resilience.
Demand for office space remained high, with transactions increasing by 19% year on year. The average price per square foot for office space saw a substantial increase of nearly 20%, driven by sustained demand from both local and international businesses.
Despite a year on year reduction of 3,355 rental transactions, mainly due to declines in retail (-1,585) and labor camp (-1,478) transactions, rental prices showed strength across key segments. Office rents surged by 20% year on year, retail rents increased by 11%, and warehouse rents climbed by almost 19%, reflecting the competitive nature of the market. Although a quieter period is expected over the summer months, the outlook for Dubai's commercial real estate market remains positive, supported by strong economic fundamentals and continued interest from global investors.
The top five communities by sales transactions for offices were Deira, DIP, Business Bay, Dubai Industrial City, and Business Bay, while retail sales transactions were highest in Deira, Bur Dubai, International City, JLT, and JVC.
About Engel & Völkers: Engel & Völkers is one of the world's leading service companies specialized in the brokerage of premium residential property, commercial real estate, yachts and aircrafts. For over 45 years now, the wishes and needs of private and institutional clients have had top priority, giving rise to the ongoing development of a range of services relating to all aspects of real estate. Sales and leaseholds, as well as consultancy for various investment opportunities in the real estate segment are among the core competencies of more than 16,500 people operating under the Engel & Völkers brand. The company is currently operating in over 35 countries on five continents. Intensive training schemes in its in-house real estate Academy and the high level of quality assurance governing its systematically structured service provision are key factors that account for the company's success. Engel & Völkers develops digital tools and IT products on an ongoing basis, in order to keep its service as efficient as possible. In doing so, the company is setting new standards in digital solutions for property brokerage.
About Engel & Völkers Middle East: Established in 2014, Engel & Völkers Middle East has its offices in Dubai, United Arab Emirates. The team consists of over 200 trusted agents, each focusing on premium residential and commercial properties, serving as experts in their respective areas company recently established a separate entity for commercial real estate (Engel & Völkers Commercial Middle East). Engel & Völkers Commercial serves as entry point to exceptional commercial real estate opportunities in Dubai, from attractive office spaces to industrial complexes Private Office provides services for affluent clients and has access to premium real estate globally. Whether you're in the market to rent, buy, or sell a property, Engel & Völkers Middle East is a perfect choice to achieve your real estate goals.
MENAFN18072024005446012082ID1108453265
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.