(MENAFN- Mid-East)
Dubai, UAE – Provident Estate is pleased to release the H1 Dubai Real estate Report 2024, curated by Laura Adams, Sales Director. The report highlights the continuous growth and record sales across all sectors of the Dubai real estate market.
Key findings indicate a notable increase in the end-user market since 2020, driven by the stability of the Emirate. The demand for villas and townhouses has surged due to a limited supply, resulting in increased prices in this segment.
Luxury properties in Dubai remain highly attractive to high-net-worth individuals and investors seeking premium real estate opportunities. The city's iconic landmarks, upscale amenities, and luxurious lifestyle offerings solidify its position as a prime real estate destination.
According to the World's Wealthiest Cities Report 2024 by Henley & Partners in collaboration with New World Wealth, the number of individuals in Dubai with liquid investment wealth of $1 million or more has risen by 78% from 2013 to 2023, reaching 72,500.
The Dubai real estate market is influenced by various factors including economic conditions, government policies, and global events. Despite these variables, the market continues to thrive. Dubai is on track to achieve its 2040 population growth plan, with a 2.3% increase in residents from the beginning of Q1 2024 to July 12, 2024, compared to a 1.45% increase in the same period of 2023. At this rate, the Emirate is projected to reach a population of over 5.5 million by 2040.
Concerns about a potential market downturn and price increases are addressed by the simple rule of economics: Dubai is gaining over 8,000 residents per month, and demand continues to outweigh supply in most new projects. Ready properties, when correctly priced, are selling within a maximum of four weeks on the market.
A UBS report from 2022 deemed Dubai as 'fair valued,' contrasting it with the top ten most expensive cities globally. Dubai's prices remain comparatively lower, bolstered by the government's commitment to safety, quality education, healthcare, and a high standard of living for diverse nationalities. With strategic planning extending to 2070, Dubai is well-organized, regulated, and accommodates all industries, while its central location offers excellent travel options for business and leisure.
The report also highlights the substantial returns on equity available from buying off-plan or ready properties, with promising premiums and returns projected for at least the next 2-3 years.
Ready Property Registrations for H1 2024 include:
Total Units: 24,697
Apartments: 19,072
Townhouses: 3,169
Villas: 2,453
Top Areas by Popularity:
Jumeirah Village Circle (JVC)
Dubai Marina
International City
Emirates Living
Dubai Sports City
Dubai South
When comparing Dubai's real estate market to other major cities like London, New York, and Hong Kong, Dubai stands out with an impressive average rental yield of 6-8% and a remarkable property price appreciation of 18% in just one year (2022-2023). In contrast, London and Hong Kong offer average rental yields of 2-3%, with property price appreciations of 10-15% over five years. New York shows slightly higher rental yields of 3-4% and a five-year property appreciation of 15-20%. Dubai's superior rental yields and significant short-term price appreciation underscore its robust and attractive real estate market.
About Provident Estate:
Pursuing excellence since 2008. Provident Estate is a one-stop shop for all things real estate. With a resolution to always offer 5-star service to their clients, Provident Estate are here for property requirements and queries. At the crux of the business, Provident Estate work relentlessly to provide hassle-free tailored real estate advice and consultancy for investors and families alike who are looking to find the perfect home. Provident Estate takes pride in the diverse portfolio of not just services but also the team members behind the company. With over 22 different nationalities speaking 25+ different languages, all are ready to answer property-related questions.
Provident are available to help with buying and leasing as well as property management all the way through to looking for the correct financing options or even finding a perfect holiday home. The company pride themselves in being transparent, honest and professional to deliver the best results to clients.
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