Dubai's Residential Real Estate Market in Q2 Sees Surge: 35,310 Transactions and 20.5% Yearly Growth

In the second quarter of 2024, Dubai's residential real estate market saw substantial growth, recording a record-breaking 35,310 transactions—an impressive 20.5 percent increase compared to the previous year. This surge was largely propelled by the growing popularity of customizable units and stable investment returns.

Key findings from a recent report by UAE real estate firm Primo Capital indicated that off-plan property sales surged by 23.9 percent, while secondary market deals rose by 15.2 percent. This trend underscores the confidence of prospective buyers and robust demand within the sector.

According to Mohammad Zeaiter, senior property advisor at Primo Capital, the shift towards customer-centric construction by leading developers in the UAE has significantly boosted market activity. Allowing buyers the flexibility to customize properties according to their preferences has been a major driver of this growth.

Furthermore, Dubai's real estate market continues to attract international investors seeking steady ROI and attractive capital gains, positioning it favorably compared to other global cities.

The report also highlighted positive developments in Abu Dhabi's residential sector, where villa prices increased by 2.3 percent and apartment prices by 4.3 percent year-over-year. Meanwhile, Dubai's commercial real estate market showed robust performance, with average rents increasing by 22.2 percent annually and 17.1 percent quarterly, driven by expanding business needs within the UAE economy.

In other sectors, the industrial and logistics segment saw rental rates rise by up to 14.3 percent annually, driven by heightened demand for warehouses. The hospitality sector maintained a strong performance, with a 0.9 percentage point annual increase in average occupancy rates.

Retail rental rates in Abu Dhabi and Dubai also saw significant rises of 14.7 percent and 10.5 percent respectively over the preceding year, reflecting supply-demand dynamics and increased commercial activity.

Looking ahead, real estate experts at Primo Capital anticipate sustained growth in the UAE's real estate market supported by a strong economy, attractive return on investment, favorable government policies, and continued investor confidence.