The UAE's real estate market has experienced consistent growth and a shift in customer tastes throughout 2023, which has welcomed greater foreign confidence and created exciting transformational chances.
There are various reasons that are actively supporting this expansion as 2024 draws near. At their recent annual recognition meet, Property Finder, the #1 real estate marketplace in the UAE, got insights from industry leaders.
AX Capital claims that examining current patterns offers insightful information about the market's probable performance in the upcoming year.
The market has shown a more consistent pattern of expansion since the COVID bounce in late 2020, suggesting a maturing period as opposed to a speculative boom. Dubai real estate is expected to have an eventful year in 2024.
Driven Properties emphasises that in 2024, a mere 24,000 apartments are scheduled for delivery. That is only half of the units that will be supplied in 2023, despite the fact that demand is still growing quickly as a result of migration and long-term city relocation.
Most of the homes that are scheduled for completion in 2024 are located in reasonably priced communities including Dubai Land, Arjan, Jumeirah Village Circle, and Dubai Production City (IMPZ). Properties are also expected to be transferred in mid-market neighbourhoods like Business Bay, Dubai Hills, MBR City, and Dubai Marina.
As rents grow less sticky, this will probably put more pressure on rental rates in places that are still affordable and stabilize the mid-market to some extent. Yet, rents may remain fixed and prices may rise at the higher echelon of the market if supply does not yet reach equilibrium with demand.
The real estate industry has historically placed a high value on interpersonal relationships. Nonetheless, it is hard to overlook the expanding impact of artificial intelligence combined with tech
The seamless combination of AI and technology with real estate will characterize real estate in 2024, changing how we interact with it and promoting increased openness and confidence in the sector.
The ability to digitally add a pool to a 3D floor plan, virtual tours, 3D floor plans, AI-powered property furnishing, and AI-driven market analysis are just a few of the features that provide clients the never-before-seen capacity to visualize both prepared properties and off-plan developments.
This tendency and the need for increased clarity and transparency in real estate transactions are strongly related.
According to Driven Properties, Dubai has made a name for itself as a tier one metropolis, competing with other world-class cities like New York, London, Paris, and others that have better infrastructure. Dubai, however, is unfairly positioned by the global market with higher capitalization rates than its contemporaries throughout the world.
Cap rates are anticipated to contract in 2024 as the international investment community recognizes that Dubai's risk profile is comparable to that of its peers, meaning its cap rates shouldn't be too dissimilar from theirs. At the moment, the average cap for tier-1 cities is 3.35%, although Dubai is at almost 6%.
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