The 2024-2025 business season is good for Dubai's real estate market, with high sales numbers, rising the value of homes, and the quick uptake of new inventory predicted to fuel further growth.
Underpinned by strong demand across several industries, a large influx of new real estate developments, and the incorporation of cutting-edge technologies, observers at Elite Merit Realty also forecast steady growth in the UAE real estate market as a whole.
It is anticipated that both domestic and foreign investors will support this growth, demonstrating the market's tenacity and strategic significance in the area.
The real estate market in Dubai is expected to see record sales volumes as well as prices in 2024, marking another successful year. Property sales peaked in July 2024 at an astounding AED49.6 billion (13.5 billions of dollars), up 31.63% from the same time in 2023.
This increase is mostly due to the strong demand for upscale real estate, especially in desirable areas like Palm Jumeirah. In just the initial half of 2024, there were more than 43,000 real estate transactions totaling about AED122.9 billion, which was 30% more than the year before. 80% of the units introduced since 2022 have already been sold, which is partially attributable to the quick uptake of new inventory.
The supply of real estate will rise significantly in the coming seasons, with an estimated 41,000 units anticipated in 2025 as well as 42,000 in 2026—an eighty percent increase over the 27,000 units anticipated in 2024.
Although there are many advantages to this influx for investors and buyers, there is also a chance that there will be too much supply, which could cause prices to stabilize or even slightly drop in some markets. However, it is anticipated that a large portion of this new supply will be absorbed by the market's resilience, which is supported by robust investor confidence and astute urban planning.
The 2024-2025 investing season is critical for investors looking to time their investments to maximize returns. The luxury market is still strong, drawing wealthy people to desirable locations like Downtown Dubai and Palm Jumeirah.
The mid-tier and cost-effective segments are also gaining popularity, especially in neighborhoods with promising rental yields like Jumeirah Village Circle and Dubai Silicon Oasis.
The development of technology is also causing a major shift in the Dubai real estate market. Digital platforms and artificial intelligence (AI) are transforming the marketing and sales of real estate. The use of tools like 3D floor plans, virtual tours, and AI-driven market assessments is becoming commonplace, increasing transparency and streamlining the process of buying a home.
Proptech solutions are also predicted to continue to grow in popularity through 2024 and beyond, as these technologies are essential to the way developers and investors interact with the market. This trend is not limited to the area; it is a component of a global movement toward real estate practices that are enhanced by technology.
Even with the optimistic outlook, there are still issues facing the market, such as possible oversupply and the resulting pressure on the costs of renting to decline. There is a trend toward greater sustainability in growth strategies after 2026 as a result of the declining supply of prime development land. Long-term market stabilization from this change is anticipated to keep Dubai a desirable place to invest in real estate.
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